Saudi law on regional HQ sees more than 120 relocations

Saudi Arabia’s newly introduced law that mandates overseas firms wanting to tender for state contracts must have their regional headquarters in the kingdom appears to be paying dividends, according to government statistics.

A report from the Ministry of Investment showed that 127 firms moved their Mena head office to Saudi Arabia in the first quarter of 2024.

This is a 477% increase on the same period in 2023.

Goldman Sachs gets licence for Saudi HQ

The law, which was implemented on January 1, also offers a number of tax incentives such as a 30-year exemption from corporation tax, for firms that do set up a Saudi office with at least 15 employees.

The Ministry of Investment’s report also stated that it is currently dealing with more than 445 visa applications from overseas investors under a scheme that allows them to visit Saudi Arabia to assess potential investment opportunities.

Investment firms have also been among those firms to move their regional HQ to the kingdom, especially any of those looking to do business with Saudi Arabia’s sovereign wealth fund and its numerous subsidiaries and portfolio companies.

Greenstone gets licence in Saudi Arabia

One of the most recent examples was Goldman Sachs, which received a green light from regulators for its Saudi office in late May.

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