Jakarta, CNBC Indonesia – Saudi Arabia issued new regulations regarding foreign companies. The kingdom has warned that it will no longer sign contracts if foreigners do not have regional headquarters in the country.
Launch Reuters who quotes Saudi Press Agency (SPA), the policy announced Monday (15/2/2021), will take effect January 1, 2024. Foreign companies are required to be permanently present in the country to create new jobs.
“The decision … will be positive towards creating thousands of jobs for citizens, transferring skills and localizing knowledge. This is a contribution to developing local content and attracting more investment to the kingdom,” said Investment Minister Khalid al-Falih writing on Twitter. Tuesday (16/2/2021).
In detail, the rules apply to government agencies, institutions and funding. The supporting regulations will be issued this year.
This is believed to increase the efficiency of state spending and help maintain domestic capital. This includes guaranteeing the main goods and services purchased by the government that originate from the regions.
So far, foreign companies have used neighboring United Arab Emirates (UAE) for a stepping stone into the Middle East region for years. Likewise to enter the Saudi Arabian market.
Ruler de facto Saudi Arabia, Crown Prince Mohammed bin Salman has previously promised to open the kingdom and diversify the economy. This has been done since he was proclaimed the heir of 2017.
Photo: Saudi Arabia’s Crown Prince Mohammed bin Salman attends the opening of the G20 leaders’ summit in Buenos Aires, Argentina November 30, 2018. REUTERS / Sergio Moraes / File Photo
FILE PHOTO: Saudi Arabia’s Crown Prince Mohammed bin Salman attends the opening of the G20 leaders summit in Buenos Aires, Argentina November 30, 2018. REUTERS/Sergio Moraes/File Photo
SPA reported 24 foreign companies have announced that they are opening regional offices there. Among them are PepsiCo and Tim Hortons.
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