Riyadh Attracts Over 120 International Firms to Establish Regional Headquarters in Saudi Arabia
In a remarkable surge, more than 120 international companies have obtained licenses to move their regional headquarters to Saudi Arabia in the first quarter of 2024, marking a staggering 477 percent increase compared to the previous year.
Vision 2030 Driving Economic Diversification Through Foreign Investment
The Ministry of Investment in Saudi Arabia disclosed in its quarterly report that the influx of 127 permits issued during the first three months of the year highlights the Kingdom’s alluring and conducive business environment, aligning with the Vision 2030 initiative to diversify the economy.
New Tax Incentives and Support Services for Multinational Companies
As part of the efforts to attract regional bases, Saudi Arabia is offering new tax incentives to multinational companies relocating their headquarters, including a 30-year exemption on corporate income tax and withholding tax related to headquarters activities, alongside various discounts and support services.
Growth in Investment Licenses Across Various Sectors
The Ministry of Investment reported a significant increase in investment licenses issued during the first quarter, totaling 3,157 and representing a 92.9 percent surge from the previous year. The construction sector led with 864 licenses, followed by manufacturing with 620 permits.
Expanding Opportunities Across Diverse Industries
The ministry also granted licenses in sectors such as vocational, educational, technical activities, information and communication technologies, as well as accommodation, food, wholesale, retail, and real estate, showcasing the broad spectrum of investment opportunities available in Saudi Arabia.
Positive Outlook for Foreign Direct Investment Inflows
A report by S&P Global highlighted the potential for increased foreign direct investment inflows into the Kingdom, attributing it to the opening of free economic zones and the regional headquarters program. This positive outlook is reinforced by government efforts to enhance regulatory and business conditions.
Regional Headquarters Program Accelerating Economic Growth in Riyadh
Saudi Arabia’s Regional Headquarters Program has been instrumental in driving economic growth in Riyadh, as emphasized by the Small and Medium Enterprises General Authority. Minister of Investment Khalid Al-Falih’s announcement of surpassing the target for attracting regional headquarters further underscores the success of the initiative, with over 180 companies now established in the Kingdom.