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The Ministry of Municipalities and Housing announced that more than 97,000 new commercial licenses were issued during the first six months of the year while over 177,000 existing licenses were renewed. In the same period the ministry processed more than 91,000 amendments to commercial licenses in addition to over 43,000 requests for adding commercial activities. More than 39,000 ownership transfers were completed according to the ministry’s tally which places the combined licensing activity above 274,000.
Ministry spokesman Mohammed Al Rassasmah stated that the figures demonstrate the impact of streamlined digital services delivered through the Balady platform. The platform has allowed businesses to complete procedures more efficiently and has supported efforts to strengthen the overall commercial environment in Saudi cities. These measures form part of wider steps to empower the private sector and stimulate economic activity the ministry reported.
A Vision 2030 progress assessment found that the private sector’s contribution to gross domestic product increased to around 51 percent in 2025 from approximately 40 percent in 2016. The same review indicated that non-oil activities now represent about 56 percent of national GDP up from 47 percent when the program began. Such licensing volumes contribute to the sustained expansion of commercial operations across the Kingdom according to government data.
The ministry issued more than 574,000 municipal licenses throughout 2025 providing a baseline for the current year’s first-half performance. Separate figures from the Ministry of Commerce placed new commercial registrations at around 71,000 in the second quarter of 2026 alone with the total active commercial register exceeding 1.89 million by the end of the first quarter. These parallel trends illustrate continued business formation in both municipal licensing and central commercial registration channels.
Saudi Arabia ranked second globally in the World Bank’s 2025 GovTech Maturity Index with more than 4,600 digital government services now available. Official evaluations show these services cover 97 percent of all public offerings including business licensing and permitting processes. The Balady platform has been central to reducing administrative hurdles and improving the investment climate the ministry assessment concluded.
Ongoing economic diversification under Vision 2030 has also been supported by legal reforms such as updates to the companies law and investment regulations that took effect in recent years. Foreign direct investment inflows reached 31.7 billion dollars in 2024 according to General Authority for Statistics data with further growth recorded in early 2025. The commercial licensing surge aligns with these reforms by facilitating faster market entry for both local and international operators.
