Newly established businesses rise 78% y-o-y in 2Q 2024

Some 121.5k companies were established in the Kingdom in 2Q 2024, up 78% y-o-y, according to a Monsha’at report (pdf). Commercial registrations were up 4.3% on a quarterly basis.

Strong demand for Riyadh: Riyadh accounted for 32% of the new establishments, followed by Makkah at 23%, and the Eastern Region at 15.7%.

DATA POINT- Women-led businesses accounted for 47% of all actively running companies by the end of 2Q, while youth-led companies made up 38%.

Fintech in focus: Active fintech companies in Saudi numbered 216 at the end of 2023, with VC investments in the segment surpassing USD 1.8 bn at the end of 2023. The Kingdom is looking to achieve an 80% cashless society by 2030 by supporting the creation of 525 new fintech companies and channeling 20% of bank financing to SMEs (up from 5.7% in 2019). These prospective companies are expected to contribute USD 3.5 bn to GDP, and rake up USD 3.3 bn in venture capital (VC) investments.

REMEMBER- Saudi Arabia led VC funding in MENA in 1H 2024, with the Kingdom raking in some USD 412 mn in VC funding during the period, or more than half of the regional tally. Salla’s USD 130 mn pre-IPO investment round accounted for a third of those funds. International VC investors accounted for 28% of all new agreements over the same period, up 17% y-o-y.