Business formation in Saudi Arabia increased by 35 percent since last year, with more than 204,000 new businesses now being registered in the kingdom in 2015.
The increased interest in entrepreneurship is believed to be due to three factors – the Saudi economy performing well, the technical efficiency of handling commercial registries, and the desire of young Saudis to start up their own businesses.
The number of new businesses established in the last year has varied from one region to another throughout the Kingdom. Qasim recorded the highest increase in new business, with a 63 percent increase overall. In Qasim, the number of new establishments amounted to 14,058 in 2015 in comparison to just 8,258 the year before, in 2014. The share of Qasim businesses out of the total number stood at 11 percent.
Al Bahah, located in the south west of Saudi Arabia, recorded the least number of new business – 298 new registrations in 2015 – accounting for only 1.13 percent of the total number of businesses in the kingdom.
Meanwhile, Riyadh had the highest share of the total number of the new establishments at 25 percent, with the total number of establishments exceeding 50,000. Makkah came in second place with a proportion of 20 percent.
Source: Arab News, Arabian Business