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Saudi Arabia’s Ministry of Commerce said the number of companies that transformed into closed joint stock companies reached 99 in 2021 and 23 in the first quarter of 2022, Al Eqtisadiah newspaper reported.
The number proprietorships that transformed into closed joint stock companies reached 105 in 2021 and 26 in the Q1 2022.
Transformation into closed joint stock companies gives the firms several advantages, mainly better mechanisms for governance and control, transition to institutional work, the possibility of listing in the capital market, and better transparency.
The total number of firms that transformed into closed joint stock companies soared 78% from 1,180 in 2015 to 2,102 at the end of 2021.
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