World Bank lauds Saudi Arabia for improving business licensing system: report

The World Bank Group has lauded Saudi Arabia for improving its licensing system in less than two years, recommending a unified legal licensing system and regulations going forward, Asharq Alawsat reported, citing a research paper on investment in the Kingdom.

Following Saudi Arabia’s approval of the national construction code in 2018, Issam Abousleiman, the World Bank Regional Director for the GCC, has commented that it’s a great opportunity to simplify and reduce construction licenses’ requirements.

The World Bank currently advises the national licensing committee on implementing a trial project to simplify licenses in Riyadh, he said, adding that if the project succeeds, the implemented solutions will be applied across the Kingdom, which will significantly improve the business environment.

In less than two years, Saudi Arabia was able to scan all its licenses and their requirements and approvals, Abousleiman said.

The World Bank’s research paper said that after a thorough risk analysis of these licenses, the Saudi National Committee was able to cancel 62 percent of the licenses (3,425 licenses out of 5,566 licenses) and 55 percent of the accompanying licenses (13,471 out of 24,629).

The Kingdom intends to apply an online licensing system to reduce time and cost.