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Global Financial Company Northern Trust Moves its Regional Headquarters to Riyadh

The regional headquarters program has so far attracted 200 foreign companies. (Asharq Al-Awsat)
The regional headquarters program has so far attracted 200 foreign companies. (Asharq Al-Awsat)
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Global Financial Company Northern Trust Moves its Regional Headquarters to Riyadh

The regional headquarters program has so far attracted 200 foreign companies. (Asharq Al-Awsat)
The regional headquarters program has so far attracted 200 foreign companies. (Asharq Al-Awsat)

Northern Trust Corp. has become one of the first major global financial institutions to establish its regional headquarters in Riyadh, which strengthens the Saudi government’s efforts to have international companies manage their operations in the Middle East from the Kingdom.
The American financial services company, which manages assets worth $1.3 trillion, obtained a license from the Saudi Ministry of Investment to establish its Middle Eastern base in Riyadh.
Speaking to Bloomberg, a company spokesman said that Northern Trust continues to achieve “significant growth” throughout the region through its offices in Abu Dhabi and Riyadh, explaining that the establishment of the regional headquarters for the Middle East and North Africa region in Saudi Arabia reflects the continued investment in infrastructure, capabilities and expertise in the region.
The Kingdom announced on Tuesday that it would provide a new tax incentive package for a period of 30 years to foreign companies whose regional headquarters are located in the Kingdom, including exemption from income tax.
The Saudi News Agency (SPA) said that the Ministry of Investment - in coordination with the Ministry of Finance and the country’s Zakat, Tax and Customs Authority - announced “the provision of a new tax incentive package, for a period of 30 years, to support the program to attract the regional headquarters of international companies.”
This step comes to “encourage and facilitate the procedures for international companies to open their regional headquarters in the Kingdom of Saudi Arabia,” the agency added.
The Regional Headquarters Program was launched in 2021, which is a joint initiative between the Ministry of Investment and the Royal Commission for the City of Riyadh, which calls on international companies to move their regional headquarters to Saudi Arabia, to transform the country into a leading regional hub for multinational companies.

 

 

 

 

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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.