![]() SPA said "24 international companies announced their intent to move their regional headquarters to Riyadh" at last month's Davos-style Future Investment Initiative forum in the capital. Many multinationals doing business in the conservative kingdom prefer to have their headquarters in the neighbouring United Arab Emirates and other Gulf capitals that offer a relatively more liberal lifestyle and permit alcohol. ![]() Under a previous government initiative known as "Programme HQ", Saudi Arabia had offered multi-national companies tax breaks and incentives to relocate their Middle East headquarters to the kingdom. Saudi Arabia, the biggest Arab economy, has been struggling to attract foreign capital, a key pillar of Crown Prince Mohammed bin Salman's "Vision 2030" economic diversification plan to boost non-oil revenue. The decision seeks to "create more jobs, limit economic leakage, increase spending efficiency and guarantee that the main goods and services purchased by the different government agencies are made in the kingdom", it added. "The cessation will include agencies, institutions and funds owned by the government and will take effect January 1, 2024." "Saudi Arabia intends to cease contracting with companies and commercial institutions with regional headquarters not located in the kingdom," the official Saudi Press Agency (SPA) reported, citing an unnamed official source. The bold announcement could intensify competition between the kingdom and other Gulf petro-states, including its principle ally the United Arab Emirates, for foreign capital as they reel from an economic downturn. ![]() ![]() Saudi Arabia will stop doing business with foreign companies with regional headquarters outside the kingdom starting in 2024, state media said Monday, in a move aimed at boosting investment as unemployment soars. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |