Saudi Arabia Licenses 180 Firms to Set up Regional HQs, Exceeds Target

Saudi Minister of Investment Khalid Al-Falih at the Bloomberg New Economy Forum in Singapore (Bloomberg)
Saudi Minister of Investment Khalid Al-Falih at the Bloomberg New Economy Forum in Singapore (Bloomberg)
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Saudi Arabia Licenses 180 Firms to Set up Regional HQs, Exceeds Target

Saudi Minister of Investment Khalid Al-Falih at the Bloomberg New Economy Forum in Singapore (Bloomberg)
Saudi Minister of Investment Khalid Al-Falih at the Bloomberg New Economy Forum in Singapore (Bloomberg)

Saudi Arabia issued licenses to 180 companies to set up regional headquarters in the Kingdom, surpassing the targeted 160, according to Minister of Investment Khalid Al-Falih.

Al-Falih noted that the Kingdom aims to grant licenses to 10 companies per week.

During the ongoing “Bloomberg New Economy Forum” in Singapore, Al-Falih highlighted the strength of the relationship between Saudi Arabia and China, considering it the largest trading partner and exporter importer in the country.

In an exclusive interview with Bloomberg on the sidelines of the conference, Al-Falih stated that Saudi Arabia aimed to reach 160 regional headquarters for global companies by the end of 2023.

The minister emphasized Saudi Arabia’s commitment to creating a globally unparalleled investment environment, encompassing a transparent and internationally recognized approach to compiling and calculating foreign direct investment statistics.

He highlighted that investors enter the Saudi market with confidence, given that the Kingdom boasts the largest economy in the Middle East and the Arab world, ranking among the top 20 economies globally.

Al-Falih affirmed the Saudi market’s distinction through rapid growth and its strategic location, providing an excellent platform for accessing active and burgeoning markets across the Middle East and beyond.

According to the Ministry of Investment’s announcement, under the new, more precise methodology, foreign direct investment reached SAR 775 billion ($207 billion) in 2022.

This positions the Kingdom at 16th place among the economies of the G20, correcting a downward adjustment from previous data estimates of around SAR 1 trillion ($269 billion) under the previous methodology.

This update accurately reflects the reality of foreign direct investment in the Saudi economy through updated figures, underscoring the transparency adhered to by the Kingdom in calculating its indicators.

In February 2021, Saudi Arabia announced a halt to contracting with any foreign company or commercial entity with a regional headquarters outside the Kingdom starting from the beginning of 2024.

This move aimed to boost employment, curb economic leakage, and ensure that products and services purchased by various government entities are executed within the country with suitable local content, aligning with the strategic goals of the national transformation plan “Vision 2030.”

In October 2021, 44 global companies received licenses to operate in Saudi Arabia as part of the first batch within the program to attract regional headquarters of international companies.

Finance Minister Mohammed Al-Jadaan affirmed last October that the Kingdom would enforce the set deadline for foreign companies to relocate their regional headquarters to Riyadh before January. Failure to do so would result in the loss of government contracts.



The Future of Revenues in Syria: Challenges and Opportunities for the Interim Government

A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
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The Future of Revenues in Syria: Challenges and Opportunities for the Interim Government

A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)

Syria faces significant challenges as discussions intensify about the post-Bashar al-Assad era, particularly in securing the necessary revenues for the Syrian interim government to meet the country’s needs and ensure its sustainability. The widespread destruction of the economy and infrastructure poses a dual challenge: rebuilding the nation while stimulating economic activity and ensuring sufficient financial resources for governance.

Currently, the interim government relies heavily on international and regional support during the transitional phase. Donor countries are expected to provide financial and technical assistance to help rebuild institutions and alleviate the suffering of the Syrian people.

However, as the country transitions, external support alone will not suffice. The government must identify sustainable revenue sources, such as managing natural resources, imposing taxes, and encouraging foreign investments.

Opportunities from the Syrian Diaspora

The Syrian diaspora is seen as a significant economic resource, contributing through remittances or involvement in reconstruction projects. However, realizing these opportunities requires the establishment of strong, transparent institutions, effective resource management, and a clear strategic plan to rebuild trust with both local and international communities.

Securing revenues for the interim government is not merely a financial challenge but also a test of its ability to lead Syria toward stability and prosperity.

Securing Economic Resources

Nasser Zuhair, head of the Economic and Diplomatic Affairs Unit at the European Policy Organization, stated that the interim government, currently led by Mohammed al-Bashir, may replicate its revenue-generating models from Idlib. Resources in Idlib were drawn from temporary measures that are insufficient for sustaining a national economy like Syria’s.

In an interview with Asharq Al-Awsat, Zuhair explained that these resources included taxation, fuel trade with Syrian Democratic Forces (SDF)-controlled areas, international aid for displaced persons in Idlib, remittances from the Syrian diaspora, and cross-border trade facilitated by Turkiye.

“The interim government believes that sanctions relief is a matter of months, after which it can begin to establish a sustainable economy. For now, it will rely on the same resources and strategies used in Idlib and other controlled areas,” Zuhair added.

Challenges and Opportunities

Despite the former regime’s reliance on illicit revenues, such as drug trafficking and Captagon production—estimated to account for 25% of government revenues—the interim government has several potential avenues for generating revenue.

International Aid

Zuhair emphasized that cross-border humanitarian aid indirectly supports local economies. “The current government understands that international and regional aid will be substantial in the coming period, particularly for refugee repatriation and infrastructure development,” he noted.

He added that efforts to secure funding from the Brussels Conference, which allocates about $7 billion annually to support Syria, will be critical. Strengthening ties with regional and European countries, such as Saudi Arabia, Kuwait, Germany, and the UK, is also a priority. However, securing such aid depends on establishing a political framework where Hayat Tahrir al-Sham (HTS) does not dominate governance.

He further noted that international and regional support will likely remain a key revenue source for the interim government, including humanitarian and developmental aid from organizations such as the United Nations and the World Bank.

Taxes and Tariffs

Zuhair highlighted taxes and tariffs as essential components of the government’s revenue strategy. This includes taxing local economic activities, customs duties on cross-border trade, and fair taxes on merchants and industrialists in major cities like Damascus and Aleppo.

“The government can also impose income, corporate, and property taxes while improving border management to maximize revenue from customs and tariffs,” he added.

Agriculture and Natural Resources

Syria’s vast and fertile agricultural lands present an opportunity for revenue generation, Zuhair underlined, explaining that taxes on agricultural products could contribute to state income. However, this sector faces logistical challenges and high production costs. By directing the agricultural sector toward self-sufficiency, the government could reduce dependence on imports and create surplus revenue, he remarked.

Additionally, managing natural resources such as oil and gas could provide a significant revenue stream if the government gains control over resource-rich areas like northeastern Syria, the official noted.

Reconstruction

Reconstruction presents another potential revenue source. International companies could be encouraged to invest in rebuilding efforts in exchange for fees or taxes. Public-private partnerships with local and foreign firms in sectors such as infrastructure and housing could also generate significant funds.

Remittances from the Diaspora

Zuhair stressed the importance of remittances from Syrians abroad, estimating that these transfers could reach $2 billion annually by 2025. Encouraging the diaspora to send funds to support family members and rebuild properties will be a key priority for the government.

Domestic Investments

The interim government has shown its ability to attract domestic investments in real estate, industry, commerce, and agriculture, despite international sanctions. According to Zuhair, leveraging Türkiye as an international gateway, the government could expand this model across Syria, taking advantage of the challenging economic conditions left by the previous regime to draw reasonable investments in its first year.

Tourism and Small Businesses

Revitalizing the tourism sector could directly contribute to revenue, he added, noting that restoring historical and cultural sites, once security and stability are achieved, will attract visitors and generate income.

In addition, encouraging small and medium-sized enterprises will help revive the economy and create jobs, Zuhair emphasized, pointing that supporting manufacturing industries could provide a sustainable revenue stream.