2024-01-01 17:12:20
RIYADH- The decision to not award contracts for government works to companies that do not establish headquarters in Saudi Arabia has come into effect. 180 foreign companies have already opened their headquarters in Saudi Arabia. Some other companies are completing the process.
In order to attract multinational companies to Saudi Arabia and create job opportunities, the Ministry of Investment and the Riyadh Royal Commission put forward a proposal to change the headquarters in February 2021. The Ministry of Investment has also announced many offers for such companies. Tax exemption for regional headquarters for 30 years, zero percent income tax for regional headquarters, exemption from Saudization, hiring of foreigners as managers, allotment of visas according to the needs of the company, opportunity for dependent visa holders to work, raising the age limit of dependent visa children to 25, etc.
The deadline for multinational companies to move their headquarters to Saudi Arabia is December 31, 2023, and there will be no change, Faisal Al Ibrahim, the Minister of Economic Affairs, stated at the Future Investment Meeting held last October. In 2021, the government announced restrictions on companies that set up headquarters in other countries and obtain contract work in Saudi Arabia. Finance Minister Mohammad Al Jad’an stated that the new decision will help increase foreign investments and create job opportunities in Saudi Arabia, which has announced a new policy on non-oil income.
There was a positive response to the government’s decision. The Ministry of Investment had expected at least 160 companies to arrive in Saudi before the deadline. But the fact that 180 companies have completed the license process is considered a positive factor. Multinational companies are entering Saudi Arabia at the rate of 10 per week.
Companies operating in the IT, oil and food sectors, including America’s Flour Corporation, Bechtel Enterprises, Germany’s Siemens, PepsiCo, wind turbine maker Vestas Wind, Unilever, Samsung, Baker Hughes, Dimension Data, System Air and InterHealth Canada, have now opened their headquarters in Saudi Arabia. Investors also see great potential in Saudi Arabia as it is the country with the fastest economic growth among the G20 countries.
Finance Minister Faisal Al Ibrahim said that many companies are coming forward expressing their interest in opening their headquarters in Saudi Arabia. Investment Minister Khaled Alfalih said that considering the current conditions in the Middle East, Europe and Asia, Saudi Arabia is considered the best destination for investment and that Saudi Arabia is an investment-friendly country.
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