Proposal Intended to Reduce Expenses and Enhance Surveillance for Small and Medium-Sized Enterprises
In a move to boost investment and foster a more agile, versatile, and eco-friendly business landscape, the Ministry of Commerce and Industry issued Ministerial Resolution No. 74 of 2025. This new regulation replaces the previous Resolution No. 146 of 2023.
According to Al-Jarida daily, the key highlight of this resolution is the consolidation of commercial activity headquarters to streamline operations—particularly for small and medium-sized enterprises (SMEs)—and abolish the needless renting of extra physical sites merely for licensing purposes. This consolidation also boosts government supervision, with the Ministry of Commerce and Industry and the Public Authority for Manpower taking charge of inspections.
The resolution allows up to five licenses to utilize a shared unified address, provided the activities are administrative or office-based and the stakeholders share substantial ownership. The ministry reserves the right to expand these perks further, contingent upon the resolution's effectiveness and the outcomes of an impact assessment.
Generally, ministerial resolutions empower government ministries to implement policies, regulations, or standards within their sectors, encompassing topics like business operations, product standards, trade practices, and industry regulations. These resolutions can meaningfully affect SMEs by influencing their regulatory compliance requirements or market access through standardization or certification. Additionally, ministerial resolutions often bolster government oversight by establishing guidelines and enforcing compliance through inspections and penalties.
That being said, for more precise insights into the specific effects of Ministerial Resolution No. 74 of 2025, it's advisable to contact the Ministry of Commerce and Industry directly or review official documents concerning this particular resolution.
- The Ministerial Resolution No. 74 of 2025, as reported by Al-Jarida daily, aims to centralize commercial activity headquarters to simplify operations for small and medium-sized enterprises (SMEs), thereby abolishing unnecessary rental of sites for licensing purposes.
- The reaffirmed resolution allows for up to five licenses to be utilized with a shared unified address, given that the activities are administrative or office-based, and the stakeholders share significant ownership.
- Stakeholders should note that the ministry retains the right to expand these advantages further, depending on the resolution's effectiveness and the results of an impact assessment.
- Financial implications for small businesses could be significant, as the new regulation could mean increased regulatory compliance requirements or improved market access through standardization or certification, as ministerial resolutions often have a substantial impact on business operations, trade practices, and industry regulations.
