KSA AI Commercial Registrations Increase by 240% in Last Five Years

AI business formations in Saudi Arabia have skyrocketed by 240% over the last five years, reaching 19,638 entities as the government officially designates 2026 the ‘Year of Artificial Intelligence’. This tech surge led a broader expansion of digital sectors in the first quarter of 2026; e-commerce activity grew 9% year-on-year to 45,669 active entities, while emerging areas such as data analytics, delivery platforms, and virtual reality technologies also recorded significant gains.

These high-growth sectors contributed to a total of 71,000 new business formations recorded by the Ministry of Commerce in Q1 2026. This brings the Kingdom’s total to approximately 1.89 million active registrations, consisting of 1.27 million establishments and 597,000 limited liability companies.

Activity during the first quarter was led by Riyadh, Makkah, and the Eastern Province, with women accounting for 47% of all newly issued registrations. This follows a period of sustained momentum in 2025, which saw 154,638 formations in the first quarter and 123,000 in the fourth.

Growth also extended into the service and tourism industries. Travel organisation services increased 32% to 11,531 entities, while real estate brokerage rose 18% to 55,482. Despite the tech boom, traditional pillars remained stable, with construction, wholesale and retail trade, and accommodation and food services accounting for 53% of new registrations during the quarter.

To support this diversifying landscape, the Saudi Business Center network has expanded to 20 branches, including a new location in Makkah. The network now provides over 6,000 services across 62 government entities to streamline the registration and operational processes for new ventures.