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Saudi Investment Climate Draws 184 New Regional Headquarters

Riyadh hosts many regional headquarters for global companies (Asharq Al-Awsat)
Riyadh hosts many regional headquarters for global companies (Asharq Al-Awsat)
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Saudi Investment Climate Draws 184 New Regional Headquarters

Riyadh hosts many regional headquarters for global companies (Asharq Al-Awsat)
Riyadh hosts many regional headquarters for global companies (Asharq Al-Awsat)

Saudi Arabia’s efforts to improve its investment climate are attracting more regional companies. In the second quarter of this year, 57 companies moved their regional offices to the Kingdom, an 84% increase compared to the same period in 2023.

This follows 127 licenses issued in the first quarter, bringing the total to about 184 for the first half of the year.

The Ministry of Investment processed 4,709 investor visit visa applications, allowing foreign investors to explore opportunities in Saudi Arabia. It also addressed 38 investor issues, including legal and procedural challenges.

The Ministry’s latest report shows a 49.6% rise in new investment licenses, with a total of 2,728 issued in the second quarter, up from 1,824 a year earlier (excluding licenses from the commercial concealment correction campaign).

Recent investment licenses have been largely focused on construction, manufacturing, professional services, education, information and communications, and the food and retail sectors.

Mining and quarrying saw the biggest growth in new licenses in the second quarter, up 209.1% from last year. This was followed by other services with a 110.5% increase and wholesale and retail trade with a 96.3% rise.

The report highlights two key investment initiatives for the second quarter of 2024.

The Ministry of Economy and Planning introduced the “Sustainability Pioneers” program in Riyadh.

This initiative promotes sustainability nationwide by encouraging collaboration among top companies in key sectors, supporting the Kingdom’s green economy goals under Vision 2030.

The program emphasizes the role of public-private partnerships in achieving sustainable development and environmental protection.

Additionally, the Fashion Commission launched "The Lab" in partnership with Mohammed bin Salman Nonprofit City (Misk City) in Riyadh.

This new studio aims to advance the fashion industry by offering designers training and resources to improve manufacturing. It also seeks to create investment opportunities and support the sector’s growth.

The report also touched on the initiatives of the Saudi-British Strategic Partnership Council, which was recently established to enhance the development of mutual economic partnership in 13 vital and promising sectors. It is a forum for exchanging qualitative expertise and reviewing the latest practices in priority activities.

The initiative contributes to enhancing the volume of trade exchange between the two countries, and is accompanied by events with the participation of the most creative and innovative companies to enhance partnership in promising and emerging fields between the two countries.

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Lebanon Central Bank Governor Says 'Working Hard' to Prevent Grey-listing

A view of Lebanon's Central Bank building in Beirut, Lebanon (File photo: Reuters)
A view of Lebanon's Central Bank building in Beirut, Lebanon (File photo: Reuters)
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Lebanon Central Bank Governor Says 'Working Hard' to Prevent Grey-listing

A view of Lebanon's Central Bank building in Beirut, Lebanon (File photo: Reuters)
A view of Lebanon's Central Bank building in Beirut, Lebanon (File photo: Reuters)

Lebanon's acting central bank governor said on Thursday that his institution was still striving to prevent being placed on a "grey list" of countries under special scrutiny by a financial crime watchdog.

Being added to the Financial Action Task Force's grey list would be another major blow to a country in financial tailspin since 2019, with depositors still locked out of most of their pre-crisis savings and many foreign corresponding banks shunning Lebanon's financial system.

Reuters first reported in May 2023 that Lebanon had received a preliminary evaluation warranting grey-listing, with gaps in several categories including its anti-money laundering measures, transparency on beneficial ownership of firms and legal assistance in asset freezing and confiscation.

After the initial assessment, Lebanon was granted a year to address those gaps before a final ruling that is set to be announced at the FATF's plenary in October of this year.

"The Financial Action Task Force (FATF) will issue a decision this coming fall and we are still working hard to prevent Lebanon from being placed on the grey list," acting central bank governor Wissam Mansouri said, addressing a meeting of the Union of Arab Banks in Beirut.

Mansouri said Lebanon had received low scores on measures to confiscate illicit wealth or address money laundering, and that the country needed to develop an action plan to address the remaining gaps.

In 2023, a diplomatic source and a financial source familiar with the matter said that the central bank's special investigations commission was lobbying FATF member states in a bid to change the score.

Being put on the FATF grey list could disrupt a country's capital flows, according to the International Monetary Fund, with banks cutting ties to customers in high-risk countries to reduce compliance costs.

Such a listing also risks reputational damage, credit ratings adjustments, trouble obtaining global finance and higher transaction costs.

In Lebanon's case, the listing would represent an indictment of the financial system at a painful time. The country has been slow to make progress on key reforms requested by the IMF in April 2022 as prerequisites for a deal with the fund. The economy has slowed further after more than 10 months of hostilities between armed group Hezbollah and the Israeli military in parallel with the Gaza war.