I previously discussed this in an article titled “Real Estate and the Trillions of the Future” about the importance of the national private sector intensifying its phased preparations to keep pace with successive shifts in market dynamics; otherwise it will be an easy target for large corporations that have already begun reorganizing internally to deliver their services. As we explained in previous articles, survival in the world of investment and competition belongs to the strongest.

Less than a year and a month had passed since these hints were made when news and reports began to surface indicating a growing demand to revoke business licenses and suspend certain business operations and economic activities, with the number of requests to revoke commercial licenses in 2021 reaching more than 324,054, at an estimated rate of about 900 requests per day, while the Ministry of Municipal and Rural Affairs and Housing received 361,772 applications for the issuance of commercial licenses (standard immediate), meaning that the increase in the number of licenses amounted to 37,718, Based on these statistics, discussions and workshops should be organized for interested parties and researchers, especially since everyone is aware of the importance of small and medium-sized enterprises in building both the micro- and macroeconomy. Is there a lack of direction among some investors? Or is there a flaw in the feasibility studies that underpinned the ventures whose owners have since left the field? Or has the investment landscape truly shifted, taking on a more robust character based on solid pillars of protection against life’s uncertainties?

The phenomenon of business license revocations could disrupt the overall economic landscape unless it is addressed or its purpose explained, as the rate of market exits cannot be as high as 900 licenses per day, as reports have indicated, while at the same time our wise government is striving to stabilize institutions by facilitating and regulating investment, and has even gone a step further by increasing the government spending budget to 27 trillion riyals.

These substantial budgets will serve to revitalize businesses and breathe new life into them, This generous government support and the technical measures implemented by the relevant authorities lead us to ask once again about the real reasons why commercial registrations are leaving the market, and what the successful solutions are.