Growth Rate of the Total Number of Companies Reached 9% during the same period
The Ministry of Commerce and Investment has announced that the total number of CR issued for companies in the Kingdom during 1438 reached 4545 companies of various types. This confirms the growth rate increase of the number of companies by 9% compared to 1437H.
The Ministry's statistics showed that the total capital of the companies established or those converted into closed joint stock companies in 1438H amounted to more than 23 billion riyals, thus the growth rate of the capital of the closed joint stock companies increased by 49% compared to 1437H. Also the average of companies capital increased From 3 to 5 million riyals during the same period.
The number of CR issued for companies during 1437 AH reached 4176, and SR 15 billion for the capital of the closed joint stock companies, while in 1436H the number of CR was 4399, and the capital of the closed joint stock companies was SR 11 billion.
Notably, the total number of various companies operating in the Kingdom exceeded 66 thousand.
This comes at a time when the Trade and Investment System continues to strive to improve the business environment, also to empower enterprises, besides creating a motivating environment for investment and propose advanced projects to serve the national economy. This is part of the Ministry’s initiatives in the National Transformation Program 2020.
The Kingdom has made unprecedented progress in the World Index for the ease of practicing business in 2018, following the implementation of many reforms and procedures that have contributed to improving the trade & investment business environment and they have boosted the investors’ confidence.
The World Bank Report ranked the Kingdom among the top 20 reformist countries in the world and the second among the top high-income countries and the second in the G-20 countries in terms of implementing reforms to improve the business environment.
Saudi Arabia's progress in the World Index of the ease of practicing business for 2018 has come in 6 hubs out of 10, as follows: Protecting Minority Investors, Implementation of Contracts, Starting a Business Activity, Cross-Border Trade, Property Registration and Settling insolvency.
The Kingdom's strong reforms have led to the progress in protecting the minority shareholders, ranking the Kingdom 10th in the World Index. This is a strong signal to the investors, who are interested in investing in the Kingdom. This would raise as well the investor’s confidence in the Saudi market and contribute in attracting foreign investment.
The steps taken by the Trade and Investment System have contributed to up-date the Rules and Regulations in force in the Kingdom, especially the Corporate Law. This led to promoting the principles of governance, transparency and disclosure in the corporate sector, as well as to developing and improving the business environment. This system is one of the most prominent economic systems issued, which provide regular and motivating environment for investment. Consequently, this would enhance the value of companies and develop their activities, and contribute to serve the National Economy.