Youth-led businesses in Saudi Arabia account for over a third of all commercial registrations

17/07/2025 07:09 AST

Saudi youth-owned businesses now represent 38 percent of the Kingdom's total active commercial registrations as of the second quarter of this year, according to the Ministry of Commerce.

The fastest-growing sectors among the 474,000 youth-led businesses include app development, which led the way with 28 percent annual growth resulting in 18,780 commercial permits. Artificial intelligence technologies closely followed, with a 34 percent increase, reaching 14,409 registrations.

The e-gaming industry also showed remarkable progress, expanding by 32 percent to 8,260 permits, while film, video, and TV production grew by 20 percent, totaling 5,752 registrations by mid-2025.

Saudi Arabia has a predominantly young population, with the latest census data indicating that individuals under the age of 30 constitute 62.8 percent of the population.

Through public-private partnerships and targeted programs, the nation is equipping young Saudis with digital literacy, entrepreneurial skills, and industry-specific expertise in high-growth sectors like AI, renewable energy, and tourism.

Private sector giants, including PwC, NEOM, Aramco, and Red Sea Global, are collaborating with government initiatives to equip Saudi youth with industry-relevant expertise.

Programs such as PwC's Hemam training, Red Sea Global's leadership programs, and vocational training schemes ensure hands-on experience, aligning education with labor market demands.

Incubators like The Garage foster startup innovation.

However, challenges persist in aligning education with labor market needs, necessitating ongoing cooperation between businesses and academia to sustain this talent pipeline.

PwC's Riyadh Al-Najjar emphasized in an interview with Arab News in January that an "entrepreneurial mindset" is critical for private sector growth, while Red Sea Global's Zehar Filemban highlighted the need for adaptability in a fast-evolving job market.

The government is addressing these needs through vocational training, Saudization programs, and incentives to attract and retain skilled professionals.

Arab News