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Saudi Arabia: Contracting with Foreign Companies Now Tied to Regional Headquarters

Saudi Arabia intends to stop contracting any foreign company or commercial institution headquartered outside the Kingdom. (Asharq Al-Awsat)
Saudi Arabia intends to stop contracting any foreign company or commercial institution headquartered outside the Kingdom. (Asharq Al-Awsat)
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Saudi Arabia: Contracting with Foreign Companies Now Tied to Regional Headquarters

Saudi Arabia intends to stop contracting any foreign company or commercial institution headquartered outside the Kingdom. (Asharq Al-Awsat)
Saudi Arabia intends to stop contracting any foreign company or commercial institution headquartered outside the Kingdom. (Asharq Al-Awsat)

Saudi Arabia is holding on to its decision that foreign companies will be required to base their regional headquarters in the Kingdom, which enters into effect on January 1, 2024.

The government issued more than 180 licenses to international companies to move their regional headquarters after it announced the decision to stop contracting with entities that do not adhere to the state's direction at the beginning of 2024.

Last week, the Saudi cabinet approved contracting regulations for firms that do not have regional headquarters in the Kingdom.

Experts believe the government granted foreign companies a long and sufficient period to prepare their regional headquarters in Saudi Arabia and not risk losing hundreds of billions of dollars in lucrative government contracts.

Specialists confirmed to Asharq Al-Awsat that companies that announced the transfer of their regional headquarters to Saudi Arabia will benefit from competition for business and government procurement.

Economics Professor at the University of Jeddah Salem Baajaja explained that the Kingdom's decision to stop contracting with foreign companies or institutions that do not have a regional headquarters in the country limits economic leakage and generates more jobs for citizens.

Baajaja stated that the government has given companies a sufficient period to move their regional headquarters, and now it is time to stop contracting with parties that do not adhere to this decision.

Economic expert Ahmed al-Jubeir told Asharq Al-Awsat that with the decision entering into force, dealing with entities that do not implement the Kingdom's directives will be prohibited.

Jubeir added that this approach confirms the government's intention to generate more jobs and ensure efficient spending.

Halting contracts

The decision came a few days before the government's deadline so that foreign companies and institutions could move their regional headquarters to the Kingdom and avoid the risk of losing contracts with public agencies in the future.

The controls aim to regulate the contracting of government agencies with companies that do not have a regional headquarters in Saudi Arabia or with any relevant party.

The following business and procurement controls are excluded, and the estimated cost shall not exceed $266,000. Under public interest requirements, the Minister can amend this amount, cancel this exception, or temporarily suspend it.

The Ministry of Investment, in coordination with the Ministry and the General Authority for Foreign Trade, has prepared a list of companies that have no regional headquarters in Saudi Arabia and periodically updates it or whenever needed. The list has been published on the e-portal.

The controls stated that government agencies should not invite companies with no regional headquarters in Saudi Arabia or any relevant party to participate in their limited competitions except in some instances.

Government agencies will only invite companies with regional headquarters in Saudi Arabia or any relevant party to participate in their limited competitions in one of the following cases:

- The conditions require up to one qualified competitor other than companies with no regional headquarters in Saudi Arabia or relevant parties to carry out the business or secure the required purchases.

- The existence of an emergency can only be dealt with by inviting companies that do not have a regional headquarters in the Kingdom or relevant parties.

According to the controls, government agencies that contract with any company and related parties not headquartered in the Kingdom must prepare a report that includes the reasons for the contract.

They must also provide the General Auditing Bureau and the Governmental Spending and Projects Efficiency Authority with a copy of the report within 30 working days of signing the contract.

Under the regulations, the Ministry of Investment will establish a committee for "the exception of government agencies' contracting controls with companies and related parties not headquartered in Saudi Arabia."

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Business

World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.

Business

Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
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Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)

Copper dropped on Friday and was set for its biggest weekly drop in London since March, as a rout in technology stocks battered markets.

Benchmark three-month copper on the London Metal Exchange was down 1.3% at $13,663 a metric ton by 0700 GMT. That placed it on track to fall 3.44% in the week, Reuters said.

The most-traded copper contract on the Shanghai Futures Exchange fell 1.08% to 106,830 yuan ($16,018.17) a ton.

The weakness reflects worries over AI investment, ‌with copper increasingly ‌influenced by "sentiment towards data center expansion," said ‌Craig ⁠Lang, principal analyst ⁠at CRU.

Technology shares were battered after Democratic wins in the US midterms fueled concerns that new regulatory oversight could cap the AI buildout.

On the other hand, supply constraints cushioned copper's decline.

"I would be cautious about calling this a sustained correction, given ongoing mine supply challenges and exceptionally tight ⁠metal availability outside the US," Lang said.

Copper stocks ‌in SHFE-monitored warehouses <CU-STX-SGH> fell by ‌over 24% this week to just 33,848 tons — the lowest ‌in almost three years. The closely watched Yangshan copper ‌premium <SMM-CUYP-CN>, a gauge of appetite for imports into key consumer China, increased to $210 a ton on Thursday, matching its record high.

Smelters in the country are facing a double squeeze of negative treatment ‌charges and lower sulfuric acid prices.

Meanwhile, warehouse inventories outside the US have been drawn ⁠down as ⁠material was pulled into the country ahead of a potential tariff on imports of refined copper.

"These physical constraints should provide some support against weaker investor sentiment," Lang said.

Among LME metals, aluminium lost 0.54%, zinc lost 1.42%, lead lost 0.45%, nickel dipped 0.23% and tin gained 0.83%.

On the SHFE, aluminium nudged down only 0.04%, zinc lost 1.35%, lead was little changed, down only 0.03%, nickel rose 2.14% and tin dropped 3.45%.

SHFE inventories were down across the board this week, led by sharp drops in aluminium <AL-STX-SGH> and lead <PB-STX-SGH>.

Business

Emerging Economies Set to Match Advanced Nations’ Renewable Capacity Additions, IEA Says

Workers walk at Kalyon Karapinar solar power plant in Karapinar, Konya province, Türkiye, Oct. 14, 2026. (AP)
Workers walk at Kalyon Karapinar solar power plant in Karapinar, Konya province, Türkiye, Oct. 14, 2026. (AP)
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Emerging Economies Set to Match Advanced Nations’ Renewable Capacity Additions, IEA Says

Workers walk at Kalyon Karapinar solar power plant in Karapinar, Konya province, Türkiye, Oct. 14, 2026. (AP)
Workers walk at Kalyon Karapinar solar power plant in Karapinar, Konya province, Türkiye, Oct. 14, 2026. (AP)

Emerging ‌and developing economies outside China are expected to add as much new renewable energy capacity as advanced economies for the first time over the next five years, driven by the current energy crisis, the International Energy Agency said on Friday.

Gas and oil prices have soared this year as the US-Iran war disrupts traffic through the Strait of Hormuz, a key route for global oil and gas trade.

Global renewable energy ‌capacity is forecast ‌to increase by almost 4,800 gigawatts ‌between ⁠2026 and 2031, ⁠the IEA said in its annual outlook.

Emerging and developing economies are expected to add about 1,100 GW, roughly the same as advanced economies, with China adding around 2,550 GW, the agency said.

Capacity growth in Southeast Asia, Africa and the Middle East is ⁠expected to triple over the period, ‌led mainly by solar installations, ‌the IEA said.

China will remain the biggest contributor to ‌global renewable energy growth, although its share is ‌forecast to fall to 53% by 2031 from 60% in 2025.

India is emerging as the world's second-fastest deployer of renewables and is expected to more than double its contribution ‌to global growth by 2031 to nearly 8.5%.

Grid connection delays remain ⁠a major ⁠challenge, with projects awaiting connections worldwide rising 60% over the past year, equivalent to four times the wind and solar capacity connected to grids during the same period.

Grid constraints are expected to slow growth in advanced economies, with annual additions in Europe through 2031 forecast to remain broadly in line with 2025 levels.

Renewable energy is expected to meet 6% of global transport energy demand by 2031, while higher fuel-blending mandates prompted the IEA to raise its biofuels forecast by 40% from last year's report.