RIYADH: Saudi Arabia’s tourism sector saw significant growth in 2024, with the number of licensed hospitality facilities increasing by 89 percent to 4,425 across various regions of the Kingdom.

In a post on X, the Ministry of Tourism’s official spokesperson Mohammed Al-Rasasimah described the surge as “remarkable,” adding that it reflects efforts “to support the sector’s growth and enhance its investment attractiveness.”

He added that the expansion comes amid a significant boom in the Kingdom’s tourism sector, driven by an influx of travelers and the ministry’s commitment to fostering a world-class hospitality environment.

The ministry reported in March that the number of licensed hospitality facilities in Makkah reached 1,030 by the end of 2024, marking an 80 percent rise compared to the previous year.

This increase positions the province as the leader in the Kingdom for the highest number of licensed facilities and rooms, underscoring the region’s dedication to enhancing visitor experiences, the Saudi Press Agency reported.

This move also reinforces the ministry’s dedication to protecting the rights of visitors and Umrah pilgrims using hospitality services in Makkah as part of its ongoing efforts to improve service quality.

“The ministry’s inspection teams conduct regular monitoring and inspection visits throughout the year to ensure that all facilities comply with licensing requirements, detect violations, and impose fines under the Tourism Law and Regulations of Tourist Accommodation Facilities,” SPA said.

Saudi Arabia’s hospitality sector is growing beyond Makkah. By the end of the third quarter of 2024, the total number of licensed hospitality facilities across the Kingdom surpassed 3,950, a 99 percent increase from the third quarter of 2023. Licensed rooms climbed to 443,000, a 107 percent jump from the 214,000 recorded a year earlier.

According to CoStar, a global real estate data provider, Makkah and Madinah have 17,646 and 20,079 rooms, respectively, in various stages of development in 2025.

This comes as Saudi Arabia recorded 30 million inbound tourists in 2024, up from 27.4 million in 2023, government data revealed. The Kingdom aims to attract 150 million visitors annually by 2030, with plans to raise the tourism sector’s gross domestic product contribution from 6 percent to 10 percent.

Saudi Arabia’s aggressive expansion in hospitality and tourism underscores its ambition to position itself as a global travel hub, catering to religious and leisure visitors.

RIYADH: Business registrations in Saudi Arabia saw a 48 percent year-on-year increase during the first quarter of 2025, with 154,638 commercial records issued, according to official data.

The Ministry of Commerce, which issued the data, explained that a commercial registration certificate legally verifies a business’s official status within the Kingdom. These records are mandatory for all businesses operating in Saudi Arabia, as they are required to open a bank account, hire employees, sign contracts, and carry out other business activities.

The data also revealed that 71 percent of the total commercial records issued were concentrated in three key regions: Riyadh, Makkah, and the Eastern Province.

This surge in registrations aligns with recent reforms to Saudi Arabia’s business registration system. Notably, the introduction of the new Commercial Register Law and Trade Names Law has streamlined the process.

One of the key changes is the abolition of subsidiary registers, meaning that a single commercial register now suffices for all businesses. Furthermore, businesses no longer need to specify the city of registration, as a single registration is valid nationwide.

The newly released ministry report stated: “Promising sectors represent key opportunities outlined by Saudi Vision 2030 for both local and foreign businesses. In this newsletter, we highlight critical sectors that directly contribute to the country’s gross domestic product, including technology, tourism, entertainment, research and development, and more.”

The report further emphasized: “These sectors offer businesses significant opportunities to grow and expand partnerships.”

Additionally, the bulletin revealed that 45 percent of the total commercial records issued to institutions are owned by women.

E-commerce

The bulletin also reported a 6 percent year-on-year surge in e-commerce registrations in the first quarter of the year, as a total of 41,322 permits were issued between January and March.

Riyadh took the lead in registrations with 17,092, followed by Makkah at 10,412 and the Eastern Province at 6,534. Madinah followed as it allocated 1,939 permits, and Qassim issued 1,342.

Cloud computing registrations

Saudi Arabia’s cloud computing registrations saw a 33 percent year-on-year increase in the first quarter of 2025.

Cloud computing refers to the on-demand availability of system resources, specifically data storage, without direct active management by the user.   

The government bulletin reported the issuance of as many as 3,278 cloud computing permits between January and March.       

This surge underscores the Kingdom’s aim to make the region a hub for technology by 2030.    

It also correlates with the Saudi government’s proactive approach to implementing digital technologies, driving economic diversification, and boosting innovation.

As per the ministry report, Riyadh took the lead in registrations with 2,065, followed by Makkah at 622 and the Eastern Province at 352. Madinah came next as it allocated 73 permits, and Asir issued 38.  

Virtual and AR technologies

The analysis also indicated that Saudi Arabia’s virtual and augmented reality technologies witnessed a 39 percent year-on-year rise in the first three months of 2025, as 8,218 permits were issued between January and March.

Riyadh took the lead in registrations with 5,060, followed by Makkah at 1,637 and the Eastern Province at 837. Madinah came next as it allocated 245 permits, and Qassim issued 112.