As Saudi Arabia is seeking to encourage foreign companies to invest in the Kingdom, a survey conducted by Reuters showed that a number of international companies have already started moving their regional headquarters to the Saudi capital, while others have disclosed serious arrangements in this regard.
The Saudi government had informed foreign companies that as of 2024, they can only secure state contracts if they have local offices. The country has also launched economic and social reforms under its Vision 2030 plan to attract investment.
According to the Reuters poll, the US construction firm Bechtel said that it had established its regional headquarters in Riyadh to cover the six member states of the Gulf Cooperation Council (GCC), while the US technology company, CSG, announced that it would move its regional office from Dubai to Riyadh, but it would not close the Dubai office.
Reuters also revealed that German auto supplier Robert Bosch had signed a memorandum of understanding to explore potential business in Saudi Arabia. The company has an office in the Kingdom and a presence elsewhere in the region, including the United Arab Emirates, a spokeswoman for the company was quoted by the agency as saying.
Indian hotel startup Oyo said it would set up its regional headquarters in the Riyadh special economic zone - the King Abdullah Financial District - with several executives relocating there, as reported by Reuters.
The survey also noted that Investment firm Franklin Templeton would monitor the regulations to assess the approach it would follow, but would remain committed to conducting business in the Middle East.
A Deloitte spokeswoman was quoted by Reuters as saying that the company “has been operating in Saudi Arabia since 1950 and we are honored to be a strategic partner for the city on its journey to achieve its ambition under Vision 2030.”
In a statement, PwC’s Saudi Arabia country leader Riyadh Al-Najjar said the company would support the Kingdom’s transformation from its regional consulting headquarters in Riyadh.
Ahmed Jazzar, president of Boeing Saudi Arabia, was quoted by Reuters as saying: “We have over 2,200 people employed by various Boeing entities and joint ventures in the Kingdom. Boeing Saudi Arabia is a Saudi Arabian company with Saudi leadership and majority Saudi employee base. We are committed to the success of Vision 2030.”
Google told Reuters that its cloud computing unit would deploy and operate a Google Cloud region in Saudi Arabia. The technology division of state oil firm Saudi Aramco will establish a local reseller for the services, Google said, adding that the focus will be on serving businesses in the country, according to Reuters’ report.
