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Saudi Arabia sees 474,000 youth-owned firms amid tech-sector push

These businesses now account for 38% of all active commercial registrations in the Kingdom.

Entrepreneur
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The number of commercial registrations held by young Saudis reached 474,000 by the end of the second quarter of 2025, according to new data released by the Ministry of Commerce. These businesses, owned by individuals aged between 18 and 40, now account for 38% of all active commercial registrations in the Kingdom.

The announcement showed a surge across several emerging sectors. Application development businesses recorded a 28% year-on-year increase in registrations, reaching 18,780. Registrations for artificial intelligence-related activities rose 34% to 14,409, while electronic game development licences climbed 32% to 8,260. The film, video, and television production sector also expanded, with registrations rising 20% to 5,752 by the end of the quarter.

The figures come as Saudi Arabia continues to push ahead with Vision 2030, its national transformation agenda focused on economic diversification, private sector growth, and digital innovation. While total new commercial registrations across all demographics declined 34% year-on-year in the second quarter to just over 80,000, the shift in concentration toward digital and creative industries signals a longer-term realignment.

According to the Ministry of Commerce, the country now has more than 1.7 million active commercial registrations overall. Despite the slowdown in total new issuances, sectors linked to emerging technologies such as AI and big data posted the highest annual growth rates.

The data reflects ongoing efforts by Saudi authorities to develop a tech-driven SME base and expand youth participation in economic activity. It also highlights growing investor interest in early-stage industries, such as AI, gaming, and media production, all of which are seen as potential pillars of non-oil growth.