Number of Saudi private companies crosses 1 mln in Q2 2018

The total number of private sector entities operating in Saudi Arabia reached 1.01 million in Q2 2018, according to data issued by the General Authority of Statistics.

Entities operating in the wholesale and retail trade represented 47 percent of total private sector entities in Q2.

The number of Saudis working in the private sector rose 5.7 percent to 1.79 million in Q2, compared to 1.69 million in the same quarter last year, the fastest growth pace since the authority started collecting data.

Employees - both Saudi and non-Saudi – working in Saudi private entities rose by 3.6 percent compared to Q2 2017.

Compensation paid to employees rose by 8.7 percent to SAR 74.63 billion in Q2 2018, compared to SAR 68.63 billion in Q2 2017.

The average compensations grew by 5 percent during the same period.

Employees’ compensations include all dues paid to employees such as salaries and wages in addition to benefits and allowances, according to the Statistics Authority.

* Includes both Saudis and non-Saudis.

Private entities generated revenue of SAR 876.81 billion during the second quarter, a 9.9 percent increase. Operating surplus reached SAR 455.18 billion.

Operating revenue refers to realized cash revenue resulting from practicing the entities’ main activities, as well as other secondary activities, while operating surplus is equal to total revenue minus total expenses and compensations.

The Statistics Authority collects data for “Economic Indices Survey” all over the Kingdom’s districts with a special focus on cities rather than villages. This is because cities contain about 84 percent of total entities in Saudi Arabia and employ almost 91 percent of total employees within the Kingdom.