EY Chooses Riyadh as Regional Headquarters
In a bold move, multinational professional services firm EY has decided to establish its regional headquarters in Riyadh, adding to the growing list of international companies setting up base in the vibrant city.
Formerly known as Ernst & Young, the London-based entity has a strong presence in the Middle East and North Africa. It will oversee a workforce of 8,000 employees across 15 countries from its new regional headquarters located in the prestigious King Abdullah Financial District in Riyadh, as per a recent press release.
This strategic decision aligns with the Saudi Investment Ministry’s announcement in December 2023 of tax incentives for foreign companies looking to establish regional headquarters in the Kingdom. This initiative is part of the country’s efforts to attract regional bases and diversify the economy in line with Vision 2030.
Increasing Trend of International Firms Choosing Saudi Arabia
The first quarter of 2024 witnessed a remarkable surge, with over 120 international firms securing licenses to relocate their regional headquarters to Saudi Arabia, marking a remarkable 477 percent year-on-year increase.
EY MENA is gearing up to unveil its expansive new office later this year, underscoring its unwavering commitment to the region for over a century. This move represents a significant milestone in the firm’s journey of transformative impact.
Emphasizing Commitment to Saudi Arabia
Abdulaziz Al-Sowailim, Chairman and CEO of EY MENA, expressed pride in contributing to the innovative strategies that are propelling Saudi Arabia as a leader both regionally and globally.
He highlighted EY’s focus on benefiting the Saudi community through programs supporting entrepreneurs, education, and youth empowerment. The firm’s recent recruitment drive saw the appointment of nearly 1,000 Saudi professionals, with initiatives like the Falcon Program aimed at advancing the careers of high-performing individuals from the region.
Fostering Innovation Through EY Wavespace Center
In addition to housing EY’s regional operations, the Riyadh office will host the EY Wavespace Center, a 930 sq. m. facility serving as a collaborative platform for clients, EY teams, entrepreneurs, students, and academia to explore cutting-edge technologies like artificial intelligence and blockchain. The aim is to drive innovation and address complex business challenges.
Supporting Economic Diversification Goals
The RHQ Program, developed in collaboration between the Ministry of Investment and the Royal Commission for Riyadh City, aligns with Saudi Arabia’s Vision 2030 and National Investment Strategy. It supports the growth plans of participating organizations in the region.
Efforts to attract regional headquarters to Saudi Arabia are bolstered by new tax incentives, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities, along with discounts and support services. Saudi Arabia’s Ministry of Investment highlighted the issuance of 127 permits in the first quarter of the year, showcasing the Kingdom’s attractive business environment.