The Ministry of Commerce regulates commerce within the Kingdom of Saudi Arabia. It aims to develop and sustain the commerce sector, adapting to global commerce changes and developments. This enhances the Kingdom's economic standing as a favored commerce destination in the Middle East and worldwide. The ministry also provides a detailed roadmap to realize its vision, establishing a leading role for the Saudi commerce sector in an equitable and encouraging environment.
Ministry of Commerce history
The Ministry of Commerce was established in 1954 during the reign of King Saud Bin Abdulaziz Al Saud, in accordance with Royal Decree No. 5703/5/22/10. It was entrusted with regulating internal and external commerce and developing commerce.
Since its establishment, the ministry has undergone various phases. In 1975, Industry and Electricity were separated from the Ministry of Commerce, leading to the establishment of the Ministry of Industry and Electricity through a Royal Order. In 2003, the industrial sector was reintegrated into the Ministry of Commerce, which then underwent a name change to become the Ministry of Commerce and Industry. In 2016, the ministry’s tasks were amended, and its name was changed from the Ministry of Commerce and Industry to the Ministry of Commerce and Investment. In 2020, the ministry's name was further changed to the Ministry of Commerce.
The ministry manages its affairs from its headquarters in the capital, Riyadh. The Minister of Commerce is appointed through a Royal Order and serves as the primary official overseeing the ministry, while also holding a position on the Council of Ministers.
Ministry of Commerce laws and services
Aligned with Saudi Vision 2030, the Ministry of Commerce undertook the preparation and development of legislation to stimulate the commercial system in accordance with international practices. Over seven years, starting from 1975, it supervised the development of more than seventy legislation, including: The new Companies Law and its implementing regulations, the E-Commerce Law and its regulations, the Commercial Franchise Law and its regulations, the Bankruptcy Law and its regulations and rules, the Anti-Commercial Concealment Law and its regulations and rules, the Movable Assets Security Law and its regulations, the Law of the Profession of Accounting and Auditing and its regulations, and the Chambers of Commerce Law and its regulations.
The ministry operates fifty-six branches, consisting of thirty physical locations for client services and twenty-six regulatory branches and offices. It offers approximately 145 services for its customers, the majority of which are conducted electronically, according to statistics from 2022.
The role of the Ministry of Commerce
The Ministry of Commerce is responsible for setting and enforcing the Kingdom's commercial policies, facilitating business activities, and developing both traditional and electronic domestic commerce. It oversees internal markets to prevent exploitation and monopolies and to regulate prices. The ministry also endeavors to enhance businesses' compliance with regulations, bolster the private sector's role in the national economy, and ensure the enforcement of commercial laws. Moreover, it is tasked with issuing licenses and overseeing the chambers of commerce and their branches.
The role of the Ministry of Commerce in improving the Kingdom’s performance in international indicators
The Ministry of Commerce contributed to advancing the Kingdom's ranking in related indicators, as the Kingdom advanced eight places in the 2022 Global Competitiveness Yearbook report to rank seventeenth out of sixty-four countries that are the most competitive in the world.
In 2022, the Kingdom secured the top position worldwide among forty-five countries in the ease of starting a business index, as reported by the Global Entrepreneurship Monitor (GEM).
The Kingdom ranked third globally in the 'Corporate Digital Transformation Index,' and third globally in the Cost of Capital Index, in the IMD Global Competitiveness Yearbook report for 2023.
The Kingdom advanced nine places in the index of supporting legislation for establishing companies, ranking seventh globally, and jumped twelve places in the index of large, efficient companies according to high standards, ranking tenth globally.
The Kingdom is one of the top ten fastest-growing countries in the field of e-commerce, boasting an annual growth rate exceeding 32 percent. It is ranked forty-ninth globally out of 159 countries, according to the United Nations e-commerce index issued by the United Nations Conference on Trade and Development (UNCTAD).
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