Saudi Arabia has achieved a significant milestone by advancing to the 17th position globally in the annual Competitiveness Report, reflecting improvements in the efficiency of the regulatory environment and the integration of economic policies. The contribution of the private sector has exceeded the target for 2025 by reaching 51% of the GDP, an increase of 4% compared to 2024, indicating a rapid pace of enabling the private sector.
Moreover, small and medium enterprises have shown remarkable growth, with their contribution to the GDP reaching 22.9% in 2024, an increase of 1.8%%. At the same time, the number of active commercial registrations has surpassed 1.8 million, with an annual increase of over 259,000 registrations, reflecting the expansion of the economic activity base and the entry of more investors into the market.
Event Details
In terms of investments, the number of commercial registrations for foreign companies reached 13,103 registrations during the year, while the number of franchise registrations increased to 2,637 registrations, with an increase of 304 registrations, indicating the growing attractiveness of the Saudi market for international investments and modern business models.
On the regulatory environment development front, the trade system has implemented more than 1,000 legislative and procedural reforms in collaboration with 65 government entities to enhance competitiveness and facilitate business operations. Additionally, over 108,000 sub-commercial registrations have been issued, alleviating burdens on the private sector since the new commercial registration system was implemented.
Background & Context
The modern technology sector has witnessed notable growth, with the number of registrations related to artificial intelligence activities reaching 19,042 registrations, reflecting an annual growth of 34%, which indicates a shift towards a digital economy and an increasing demand for advanced technologies. In the context of enabling entrepreneurship, the value of financing through the "Kafalah" program has exceeded 130.6 billion riyals, while more than 39 establishments have been listed in the parallel market, enhancing the access of startups to financing and expanding their operations.
These indicators come within the framework of the targets set by Vision 2030, which aims to diversify the economy and enhance market efficiency. The recorded figures represent a gradual transition from the empowerment phase to maximizing economic impact, reinforcing Saudi Arabia's competitiveness as a regional business and investment hub.
Impact & Consequences
These achievements are a positive indicator of Saudi Arabia's ability to attract investments and enhance the role of the private sector in the economy. Furthermore, the improvements in the regulatory environment reflect the government's commitment to facilitating business and providing a competitive environment.
This progress may contribute to enhancing Saudi Arabia's position on the global economic stage, opening new avenues for cooperation with other countries and increasing investment opportunities across various sectors.
Regional Significance
These developments serve as a model for other Arab countries seeking to improve their economic environments and enhance their competitiveness. Saudi Arabia's success in achieving these goals can inspire neighboring countries to adopt similar strategies.
In conclusion, Saudi Arabia's advancement in the Competitiveness Index represents an important step towards achieving the objectives of Vision 2030, reinforcing its role as a regional center for business and investment.