Mizuho Financial Group Initiates Process to Establish Regional Headquarters in Riyadh
In a strategic move, global banking firm Mizuho Financial Group has taken the first step towards setting up its regional headquarters in Riyadh by submitting an application to the Kingdom’s Ministry of Investment.
The Tokyo-based company has officially confirmed the submission of the application, signaling its interest in expanding its presence in Saudi Arabia. However, they have chosen to remain tight-lipped about further details when approached by Arab News.
Kingdom’s Appeal to International Companies Grows Stronger
The decision by Mizuho Financial Group comes at a time when Saudi Arabia is actively enhancing its appeal to international companies through initiatives like the Regional Headquarters Program. This program has already attracted several global firms, including EY, Goldman Sachs, and PayerMax, to shift their Middle East bases to Riyadh.
Mizuho Financial Group has been operating in the country through its subsidiary, Mizuho Saudi Arabia Co., which has been serving as an investment bank in Riyadh since 2009. The subsidiary is licensed and regulated by the Capital Market Authority, providing advisory and arranging services.
Benefits of Establishing Regional Headquarters in Riyadh
The Kingdom is offering attractive incentives to companies looking to establish their regional headquarters in Riyadh as part of its economic diversification goals. These incentives include a 30-year exemption from corporate income tax and withholding tax on headquarters activities, as well as various discounts and support services.
Under the newly approved laws in Saudi Arabia, companies with state contracts are required to have a regional headquarters in the Kingdom with a minimum of 15 employees.
Significant Increase in Companies Relocating to Saudi Arabia
More than 120 international firms have received licenses to relocate their regional headquarters to Saudi Arabia during the first quarter of 2024, marking a remarkable 477 percent year-on-year increase. The Ministry of Investment’s quarterly report highlighted the Kingdom’s attractive and favorable business environment.
Notable companies like Boeing Co. and Amazon.com Inc. are among the over 400 contracting, manufacturing, and technology firms that have obtained the RHQ licenses. The report also revealed that the construction sector received the highest number of investment licenses in the first three months of the year, followed by the manufacturing industry.
Impact of Regional Headquarters Program on Economic Growth
A report by Saudi Arabia’s Small and Medium Enterprises General Authority emphasized the crucial role played by the Kingdom’s Regional Headquarters Program in accelerating the economic growth of Riyadh. Minister of Investment Khalid Al-Falih announced in November 2023 that Saudi Arabia has exceeded its target for attracting regional headquarters, with over 180 companies now established in the Kingdom.