Commerce

Saudi Arabia is recognized as one of the economies with a forward-thinking orientation due to its untapped and distinct investment potential. Additionally, investors enjoy a wide range of options and opportunities as it is characterized by an array of natural resources and a strategic location at the crossroads of the three continents' basic economic routes. Several economic reforms conducted under the Saudi Vision 2030 framework have been successful in developing basic strategic assets, creating new business opportunities, and accelerating the kingdom’s economic growth and diversification.

Trade in Saudi Arabia

Saudi Arabia is undergoing a revolutionary commercial transformation and is ranked first among countries in the index of international commerce. These commercial transformation activities are in line with global trends, and they continue to draw both domestic and foreign investment. Saudi Arabia holds the fundamental skills required to build a robust economy that meets the objectives of Vision 2030 and develop optimistic possibilities for Saudi Arabia and developing countries in all economic, social, and political spheres.


Saudi Arabia has simplified all the procedures needed to start a business in the kingdom; the commercial register is issued via straightforward steps and verified with all relevant government entities, such as Balady, the General Organization for Social Insurance, and other related entities - the types of companies and institutions, as well as their requirements, vary depending on size and activity.

Begin your Business Journey


Saudi Arabia has facilitated the business start-up processes to improve the business environment and facilitate your business journey.

Saudi Arabia established the "Saudi Business Center" to facilitate the start and practice of business and to increase competitiveness in Saudi Arabia through reducing the time of government related procedures and the cost of the licenses required. The Saudi Business Center offers a variety of services, including:

The Small and Medium Enterprises (SMEs)

Small and medium-sized firms (SMEs) play a significant role in global economic development, and Saudi Arabia recognizes their value in consolidating and diversifying the kingdom's economy, providing sustainable development, creating job opportunities, and serving as creative and inventive incubators. 


Saudi Arabia assisted SMEs in a variety of ways, including offering them technical support and the assessment of ttheir development potential, providing entrepreneurs with consultations and broadening their entrepreneurship culture, empowering businesses by providing them with appropriate services, providing administrative and marketing training programs and information on how to achieve business professionalism, providing financial loans to business owners through licensed financing companies, and setting policies and standards for SMEs.


 

Monsha’at (The Small and Medium Enterprises General Authority)

The Small and Medium Enterprises General Authority (Monsha'at) was established in 2016 with the aim of regulating, supporting, developing, and sponsoring the SME sector in Saudi Arabia in accordance with global best practices, in order to increase the productivity of SMEs and their contribution to GDP from 20% to 35% by 2030. Monsha'at is mandated with developing, implementing, and supporting programs and projects that foster a culture of self-employment, entrepreneurship, and innovation.
It strives to diversify the funding sources provided to enterprises, support the initiatives within the venture capital sector, develop policies and standards to fund small and medium projects. Such measures will uncover endless possibilities for SMEs to unlock their full potential as they grow their administrative, technical, financial, marketing, human resources capabilities.


SMEs Bank

The Small and Medium Enterprises Bank was established by Cabinet Resolution No. 376, dated 04/07/1442AH (16-1-2021), as one of the development funds and banks affiliated with the National Development Fund, which aims to increase financing provided to the small and medium enterprises sector, bridge the financing gap, and enhance the contributions of financial institutions in providing Innovative financing solutions, and achieving financial stability for this vital and important sector to be a mainstay for economic development in  Saudi Arabia and an enabler to achieve Vision 2030.

SMEs statistics (Q2 2023):

1.23 mn SMEs accros Saudi Arabia
17.888 medium-sized companies
152.825 small-sized companies
1.06 mn micro-sized companies
2.6% increase on Q1 2023

SMEs Rules and Regulations

Amended business incubators regulation for the year 1442 AH (2020/2021):

The document included: definitions, objectives, validity, business incubators register, license application, the study of the license application, initial approval and licensing, headquarters conditions, essential services, optional services, business incubator obligations, beneficiary obligations, inspection and control, Monsha’at’s relationship with business incubators, violations, Classification and evaluation, grievances, decisions, and instructions, publication, and enforcement. To read the full document, click here.


Legal regulation for Monsha’at:

Monsha’at aims to regulate the establishment sector in Saudi Arabia, and the council represents the supreme authority of  Monsha’at. Its meetings are held at the  Monsha’at’s headquarters under the chairmanship of the Chairman of the Council.  Monsha’at has a governor appointed and designated by a decision of the council.  Monsha’at also has an independent annual budget and resources, and  Monsha’at submits to the Council of Ministers its final yearly account. To read the full document, click here.



Government Tenders and Procurement Law and its implementing Regulations:

This regulation replaced the Government Tenders and Procurement Law of 1427AH (2006/2007).. It included: definitions, objectives, basic principles, the scope, planning and organization, the portal, conditions for dealing with and qualification of competitors, tender documents, requirements and specifications, estimated cost, criteria for evaluating bids, retail, collaborative tendering, Public and private competition, two-phase tenders, direct purchase, framework agreement, electronic reverse bidding, industry localization, and knowledge exchange, competition, bids and awarding, initial guarantee, bid examination, suspension period, contract conclusion and implementation, contract drafting, absolute guarantee, price adjustment, Assignment and subcontracting, fines, extension, partial pullout and implementation at the expense of the contractor, termination of contracts, performance evaluation and sale of movables, complaints, and violations final provisions publication and enforcement. For further details, click here.



The internal regulations of the initiative to return the amounts of government fees paid by small and new establishments (amended) for the year 1440AH 2018/2019):

The regulations included: introduction, objectives, validity, requirements that must be met in the facility, fees subject to the provisions of the initiative, obligations of the facility, violations and penalties, inspection, and control, objection committee, objection criteria, terms and tasks of the Authority, tasks of the work team, tasks of the ministerial committee, enforcement of the regulations. For further details, click here.


Commercial data law and its implementing regulations:

The law included: the commercial statement, the language of writing the commercial statement, the controls for describing awards on products, the rules for recording the name of the seller or their address or the name of the entity on the products, how information is placed on the products, penalties, control of violations, the investigation and prosecution Monsha’at and the court procedure, enforcement of the regulations. For further details, click here.


Anti-Concealment Law 

This law replaced the Anti-Concealment Law issued by Royal Decree No. (M/22) dated 4/5/1425 (22-6-2004): that defines crimes and violations, arrest, investigation and trial, penalties, final provisions, publication, and enforcement. For further details, click here.


Government Tenders and Procurement Law and its implementing regulations:

This law replaced the Professional Companies Law of 1412H (1991/1992). It included: definitions, forms of professional companies, establishing companies and converting them to another category, licensing, articles of incorporation, doing business, supervising authority, company name, company management, errors and compensation, loss of license, deceased partner, seizure of the joint partner, violations and penalties, review committee, issuance of the administrative regulations of the Law, publication and enforcement. For further details, click here.



The Professional Companies Law and its implementing regulations:

This law replaced the Professional Companies Law of 1412H (1991/1992). It included: definitions, forms of professional companies, establishing companies and converting them to another category, licensing, articles of incorporation, doing business, supervising authority, company name, company management, errors and compensation, loss of license, deceased partner, seizure of the joint partner, violations and penalties, review committee, issuance of the administrative regulations of the Law, publication and enforcement. For further details, click here.



The Trade Names Law and its implementing regulations:

The Royal Decree included: Amending the text of Article (Twelfth) of the Trade Names Law of 1420AH (1999/2000) about penalizing those who used trading names in violation of the provisions of this Law. For further details, click here.



The commercial franchise law and its implementing regulations:

It includes definitions, objectives, scope, registration of brokers, functions of the center, licensing, obligations of the broker, temporary suspension, the relationship of the center with the commercial broker, Classification and evaluation, control and quality control of performance, violations, grievances, and enforcement. For further details, click here.


Services for SMEs

There are multiple services offered by "Monshaat" to facilitate any procedure related to SMEs and strengthen their role in economic development, besides creating a corroborative environment for the establishment and development of enterprises to become significant contributors to the national economy. Among these services are:
  • Jadeer is a free online service that aims to capacitate and empower SMEs in the market. This is done by facilitating their process to reach procurement opportunities offered by our partners in the public sector and big enterprises in the private sector.
  • Monsha'at Academy: the authority seeks to improve and develop the capabilities and skills of entrepreneurs and enterprise owners. It provides training courses that aim to achieve growth, expansion, and sustainability and raise administrative, financial, and technical capabilities.
  • Government Cost Calculator helps entrepreneurs about to start a business know precisely the most important governmental fees during the foundation and operation phases.
  • Nawafth Monshaat App, as part of our efforts to serve entrepreneurs and SMEs across Saudi Arabia, Monsha'at established the "Nawafth" mobile application. This first-of-a-kind app links users to specialists that provide guidance and consultancy services directly to your phone. The application aims to increase the growth and sustainability of SMEs, enabling them to realize ambition and overcome challenges by connecting them with specialized consultants and mentors with expertise in business fields.

Mobile Applications for the Commerce Sector

To discover the key government applications for the Commerce Sector, please click here.

Rules and Regulations

Important Links

Relevant Agencies