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Why Did 630 Int’l Companies Choose Saudi Arabia as Regional Headquarters?

An aerial view of the Saudi capital, Riyadh (AFP)
An aerial view of the Saudi capital, Riyadh (AFP)
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Why Did 630 Int’l Companies Choose Saudi Arabia as Regional Headquarters?

An aerial view of the Saudi capital, Riyadh (AFP)
An aerial view of the Saudi capital, Riyadh (AFP)

While Saudi Arabia is preparing to host 450 new regional headquarters for a number of international companies, in addition to issuing 180 licenses, Asharq Al-Awsat interviewed experts about the factors that attract companies to the Kingdom.

Saudi Minister of Investment Eng. Khaled Al-Falih has recently announced an agreement to grant 450 foreign investors licenses to establish their regional headquarters in Saudi Arabia, mainly in Riyadh.

Giant projects

Experts confirmed that the Kingdom offers giant investment opportunities and projects that are attractive to international companies, in addition to the country’s strategic location that connects three continents and allows reaching 40 rapidly growing markets within four hours by plane.

Experts say the Kingdom is the ideal place for multinational companies to establish their regional headquarters. The country is witnessing economic transformations and has an attractive investment environment, as the government has worked on regulatory and legislative reforms that facilitate the process of foreign companies accessing the Saudi market.

Geographical location

The head of the Saudi Governance Center, Nasser Al-Sahli, told Asharq Al-Awsat that Saudi Arabia was the largest economy in the Middle East and North Africa, and occupied the 18th place among the largest economies in the world, in addition to its distinguished geographical location that makes it the focus of attention of major international companies.

Al-Sahli stated that Saudi Arabia was currently working on several giant projects, in addition to having all the capabilities and incentives that attract the private sector.

In return, many foreign firms are looking for opportunities to expand their business and access these projects, he remarked, noting that not having a regional office in the Kingdom will deprive them of these promising opportunities.

For his part, economic expert Ahmed Al-Shehri told Asharq Al-Awsat that international companies are choosing Saudi Arabia as the headquarters for their regional offices, based on the country’s economic prosperity and tangible progress in all international indicators.

He added that the government has implemented legislative and regulatory amendments, in addition to providing incentives to facilitate entry procedures for foreign companies.

Al-Shehri stated that Saudi Arabia currently represents an attractive investment destination due to its geographical location that connects three continents, making it an ideal place for multinational companies to establish their regional offices.

In February 2021, Saudi Arabia announced plans to cease contracting with companies whose regional headquarters are not in the Kingdom by Jan. 1, 2024, to help create local jobs, boost investment, and ensure economic diversification within Vision 2030 and the strategic plan for Riyadh.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."