Northman & Sterling

Saudi Arabia 2025: A Growing Hub for Business, Tech & Innovation

Business Growth in Saudi Arabia 2025

Saudi Arabia is stepping into 2025 with major momentum. In just the first three months of the year, the country saw a 48% jump in new business registrations — that’s over 154,000 commercial records issued, according to official data.

This growth is no accident. Thanks to new business-friendly laws, like the updated Commercial Register Law and Trade Names Law, it’s much easier to set up and operate a business nationwide. You no longer need multiple registrations — just one nationwide license covers everything.

Where is the Growth Happening?

Most new businesses are launching in Riyadh, Makkah, and the Eastern Province, accounting for 71% of all registrations.

This is in line with Vision 2030 — the Kingdom’s long-term plan to diversify its economy and become a top destination for business and investment.

Another exciting highlight: 45% of newly registered businesses are owned by women. This marks a big step forward for female entrepreneurship in Saudi Arabia, and it reflects the positive changes happening across society.

Growth in Digital Sectors

  • E-commerce Is Booming

More people are shopping online, and businesses are responding. The e-commerce sector grew by 6%, with over 41,000 new permits issued. Most of this activity is coming from Riyadh, Makkah, and the Eastern Province

  • Cloud Computing on the Rise

Cloud services — think online storage and systems — are growing fast too. The sector saw a 33% increase in registrations, with more than 3,200 permits issued in early 2025. This reflects Saudi Arabia’s ambition to become a tech hub in the region.

  • Virtual & Augmented Reality Gaining Ground

AR and VR technologies are also taking off. There was a 39% jump in permits, with over 8,200 issued in Q1. These tools are becoming more common in areas like education, entertainment, and business.

Promising Sectors for Investors

According to the Ministry of Commerce, sectors like technology, tourism, entertainment, and research and development are expected to drive much of the country’s economic growth in the coming years. These areas offer major opportunities for both local and global companies.

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