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.
