The regulation for foreign companies to set up regional headquarters in the Kingdom is now in effect and, according to analysts, will support Saudi Arabia’s non-oil economy and improve job creation. It requires businesses to set up a local base or risk losing out on government contracts, although companies with foreign operations not exceeding one million riyals can operate without local headquarters.
Saudi Arabia is aspiring to enhance foreign direct investment as part of its Vision 2030 agenda, with the Kingdom hoping to have 480 global companies establish headquarters over the next six years.
Back in October 2021, 44 companies received government licenses to set up headquarters in Saudi Arabia, including PepsiCo, DiDi, Unilever, Siemens, KPMG, Novartis, Baker Hughes, Halliburton, Philips, Flour, Schlumberger, SAP, PwC, Oyo, Boston Scientific, and Tim Hortons. The program has licensed more than 200 companies since 2021, according to the Kingdom’s Ministry of Investment.
The Kingdom is hoping to have 480 global companies establish headquarters over the next six years
The regional headquarters program, an initiative by the Ministry of Investment and the Royal Commission for Riyadh City, is striving to attract multinational companies by offering a range of benefits and premium support services, including a 30-year tax break, and blue-chip organizations such as GE Healthcare, Bechtel, Huawei, ABB, and Schneider Electric, have announced their plans to relocate to the Kingdom as part of their regional expansion plans.
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