Temporary Suspension of Licenses for "Single-Owner" Companies
The Ministry of Commerce and Industry has temporarily suspended the issuance of new licenses for single-owner companies (free zone businesses) for those seeking to establish such entities, pending the completion of a review and regulation of procedures and amendments to the governing decision to align with local market requirements.
Sources familiar with the matter told Al-Rai that the suspension applies only to applications for new licenses, confirming that all existing and previously issued licenses continue to operate normally, with no impact or modification to their legal or operational status.
The ministry is currently working to organize and coordinate the regulatory frameworks for these licenses in collaboration with the Public Authority for Civil Information, aiming to harmonize licensing procedures with address and location records and enhance electronic integration between the two entities, leading to a more organized mechanism suited to market needs.
The sources indicated that the anticipated amendments aim to regulate the business environment and improve the license issuance mechanism, particularly since this type of license covers a wide spectrum of economic activities. The list of permitted activities includes approximately 122 activities distributed across more than 15 economic sectors, led by professional, scientific, technical, and consulting activities, alongside information and communications technology, real estate, trade, tourism, education and training, design and arts, sports and entertainment, environmental services, agriculture, and other activities conducted through free zone licenses without a physical office.
In a related development, data from the Ministry of Commerce showed that the total number of single-owner company licenses issued during the first five months of 2026 reached 6,586 companies. These were distributed as follows: 1,085 in January, 1,557 in February, 1,144 in March, and 1,512 in April, before declining to 1,288 in May, marking a 15% decrease compared to April.
