RIYADH — The Ministry of Commerce revealed that a total of 191 limited liability companies were converted into closed joint stock companies in 2021, compared to only 53 in 2020.

The ministry said that the number of companies that transformed into closed joint stock companies soared 260 percent in 2021.

The transformation of various types of firms into closed joint stock companies has been on the rise since 2015. The number of closed joint stock companies jumped from 1,180 in 2015 to 2,102 in 2021, a rise of 78%.

According to the ministry, the privileges of transformation into closed joint stock companies include the multiple and diversified financing sources; the possibility of listing on the capital market; increased shareholder base; enhanced monitoring, governance, transparency, and higher flexibility of decision taking. — SG