New Commercial Registration Law to Boost Saudi Investment by 8.8%

Saudi Arabia’s newly-introduced Law of Commercial Registration is expected to drive investment growth by up to 8.8%, according to a recent report by the Center for Economic Studies at the Federation of Saudi Chambers of Commerce. The law is designed to simplify the business registration process and remove barriers for entrepreneurs and established businesses alike.

The report claims that the law’s reforms will allow businesses to operate more efficiently across the Kingdom, particularly by eliminating the need for multiple registrations in different cities. Previously, businesses were required to register in each city they operated, but now a single registration will cover the entire country. This change will not only reduce bureaucratic hurdles but also lower operational costs for businesses.

One of the major benefits outlined in the report is the significant cost savings for companies. The elimination of city-specific sub-registries is expected to save businesses between SAR 80 million and SAR 110 million annually. These savings, combined with the ease of expanding operations nationwide, are projected to spur local investments by between 7.4% and 8.8%.

The report also underscores the significant role that the private sector already plays in the Saudi economy, contributing SAR 1.7 trillion to the nation's GDP. Currently, there are 1.5 million active commercial registrations in the Kingdom, and the private sector’s impact continues to grow. Additionally, the law aligns with broader national goals, including increasing localization and female workforce participation, which reached 35.4% in recent reports.

The reforms under the new law also include provisions that allow entrepreneurs to run multiple commercial activities under a single registration. This flexibility will enable businesses to diversify their operations without the complexity of managing separate registrations for each activity.

In addition to the registration changes, the number of economic establishment branches is expected to increase by 3.8% to 5.3% in the coming years. This growth is indicative of the law’s potential to encourage business expansion and innovation, further strengthening the Kingdom’s private sector.

The Federation of Saudi Chambers has played a proactive role in this transformation, working closely with the National Competitiveness Center (Tayseer) to address investor challenges and develop practical solutions that support Saudi Arabia’s economic vision. The law, which removes long-standing barriers and encourages ease of doing business, marks a key step toward diversifying the economy and creating a more competitive business environment.