This projection results from a recent analysis of the possible influence of the law on the business climate published by the Center for Economic Studies inside the Federation of Saudi Chambers of Commerce.

Showing a phenomenal SR1.7 trillion contribution to the GDP and over 1.5 million active commercial registrations, the paper offers a whole picture of the present situation of the Saudi private sector. With 28% of companies now locally held and the growing involvement of women in the workforce where their participation has reached 35.4%, it also emphasizes the success of localization initiatives.

The adoption of the new Law of Commercial Registration is a main engine behind these developments. Aiming at simplifying and modernizing the corporate registration process, this law includes several important changes. One of the most important improvements is the deletion of sub-registries for establishments, therefore eliminating the need for separate registrations for every city or region firms operate in. Rather, companies may now run all throughout the Kingdom under one registration. For companies trying to go into other markets, this will cut regulatory obstacles and streamline administrative procedures.

Previously requiring separate registrations, the regulation also facilitates entrepreneurs' ownership and operation of a single facility competent to handle several commercial activities. Furthermore eliminated is the need to register companies in particular cities, thereby enabling more freedom and the possibility to extend activities all throughout the nation.

Businesses should stand to gain significantly financially from these improvements. Eliminating sub-registries by themselves should save businesses between SR80 million and SR110 million yearly, freeing more money for reinvestment into current operations or new businesses. The revisions are expected to so boost local investment growth, which the report estimates to increase by as much as 8.8%, Moreover the number of branches run by economic companies is expected to rise by between 3.8% and 5.3% in line with the law's potential to support company growth and the generation of fresh business prospects.

Leading these developments, the Federation of Saudi Chambers of Commerce has been aggressively researching and working with important government agencies such the National Competitiveness Center (Tayseer) to solve issues experienced by investors. Aiming to create a more competitive and investor-friendly climate in the Kingdom, the Federation has been working to pinpoint areas where businesses encounter obstacles to development and has suggested sensible solutions to these issues.

Adoption of the new Law of Commercial Registration is considered to be a significant progress in Saudi Arabia 's bigger plan for economic transformation, which aims to diversify the economy, attract foreign investment, and create a more sustainable business climate. Reducing bureaucratic obstacles and streamlining the business registration and expansion process would help to generate a more active and competitive private sector that can drive long-term economic development and significantly support Kingdom Vision 2030 aims.

Saudi Arabia to launch new Commercial Registration Law, rising investment by 8.8%

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