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Riyadh Strategy Sees 24 Multinational Firms Establishing Regional Offices in Saudi Capital

Efforts to attract regional offices of international companies comes as an element of the Riyadh Strategy. Asharq Al-Awsat
Efforts to attract regional offices of international companies comes as an element of the Riyadh Strategy. Asharq Al-Awsat
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Riyadh Strategy Sees 24 Multinational Firms Establishing Regional Offices in Saudi Capital

Efforts to attract regional offices of international companies comes as an element of the Riyadh Strategy. Asharq Al-Awsat
Efforts to attract regional offices of international companies comes as an element of the Riyadh Strategy. Asharq Al-Awsat

Reflecting global confidence in the Saudi market and presenting an important first step for the recently announced Riyadh Strategy, 24 multinational companies have announced their decision to establish regional headquarters in the Saudi capital.

Efforts to attract regional offices of international firms comes as an element of the Riyadh Strategy, which aims to double the size of the economy and achieve major leaps in generating jobs, improving the quality of life, and attracting and expanding investments to place Riyadh among the ten largest city economies in the world by 2030.

It is expected that attracting regional headquarters will contribute to the national economy with a value of 61 to 70 billion riyals ($16 - $18.6 billion) by 2030 through salaries, operating and capital expenditures of these companies.

The 24 firms have signed agreements to establish main regional offices in Riyadh in the presence of Investment Minister Khalid Al-Falih and Chief Executive Officer of the Royal Commission for Riyadh City Fahd Al-Rasheed.

The signing ceremony was also attended by CEOs of major international companies such as PepsiCo; Schlumberger; Deloitte; PWC; Tim Hortons; Bechtel; Bosch; Boston Scientific and others. This step reflects the importance and confidence in the Saudi market regionally and globally.

As part of the strategy recently announced by Crown Prince Mohammed bin Salman bin Abdulaziz, Saudi Arabia plans to increase the residents of Riyadh from 7.5 million to 15-20 million in 2030.

The strategy also aims to improve Riyadh in terms of quality of life, tourism, education by various initiatives covering different sectors.

Attracting regional headquarters is not an end, but rather one of the economic growth potentials that Riyadh aspires to achieve.

The Kingdom is currently working on many systemic amendments with the aim of developing an investment environment for international companies.

Saudi Arabia will work to provide many incentives that improve its competitiveness regionally and globally, to attract the companies and give them sufficient time to move and operate in their new headquarters without affecting their business.

The incentives offered will be limited to regional headquarters, excluding their operations outside.

The Royal Commission for Riyadh City will work with these companies on programs and initiatives to qualify young Saudi leaders to work in the regional offices.

Attracting regional headquarters will result in more than 35,000 jobs for young men and women in the Kingdom.

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Türkiye's Central Bank Raises Inflation Forecasts, Vows Tight Policy

FILED - 24 May 2018, Türkiye, Istanbul: Turkish lira are kept fanned out. Photo: Can Merey/dpa
FILED - 24 May 2018, Türkiye, Istanbul: Turkish lira are kept fanned out. Photo: Can Merey/dpa
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Türkiye's Central Bank Raises Inflation Forecasts, Vows Tight Policy

FILED - 24 May 2018, Türkiye, Istanbul: Turkish lira are kept fanned out. Photo: Can Merey/dpa
FILED - 24 May 2018, Türkiye, Istanbul: Turkish lira are kept fanned out. Photo: Can Merey/dpa

Türkiye's central bank raised its year-end inflation forecasts for this year and next to 44% and 21% respectively on Friday, and Governor Fatih Karahan vowed to keep policy tight to propel the disinflation process and hit targets.

The bank's previous inflation report three months ago forecast year-end inflation of 38% in 2024 and 14% next year, Reuters reported. The revision underlines its tougher-than-expected battle against inflation that began with aggressive rate hikes 18 months ago.
Presenting a quarterly update in Ankara, Karahan cited improvement in core inflation trends even as service-related price readings are proceeding slower than anticipated. But even in that sector, inflation is gradually losing momentum, he said.
"We will decisively maintain our tight monetary policy stance until price stability is achieved," he said. "As the stickiness in services inflation weakens, the underlying trend of inflation will decline further in 2025."
October inflation remained loftier than expected, dipping only to 48.58% annually on the back of tight policy and so-called base effects, down from a peak above 75% in May.
Monthly inflation - a gauge closely monitored by the bank for signs of when to begin rate cuts - rose by 2.88% in the same period on the back of clothing and food prices.
The bank has hiked rates by 4,150 basis points between June 2023 and March 2024, to 50%, as part of an abrupt shift to orthodox policy after years of low rates aimed at stoking growth.

President Recep Tayyip Erdogan, who in past years was viewed as influencing monetary policy, had supported the previous unorthodoxy. It triggered a series of currency crashes and sent inflation soaring.

Erdogan was quoted on Friday as telling reporters that "no one should doubt" the steady decline in inflation and that economic steps would continue with discipline and determination to ease price pressures.

The central bank warned last month that a bump in recent inflation readings increased uncertainty, prompting analysts to delay expectations for the first rate cut to December or January.

Karahan said the new inflation forecasts were based on maintaining tight policy, adding the bank would do "whatever is necessary" to wrestle inflation down, and pointing to what he called a significant fall in the annual rate since May.

He said the slowdown in domestic demand continues at a moderate pace and the output gap has continued to decline in the third quarter.