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Minister of Investment Khalid Al-Falih
Saudi Arabia’s decision not to give government contracts to any foreign company without regional headquarters in the Kingdom will encourage hundreds of firms to move their hubs to Saudi Arabia, Al-Sharq TV reported, citing Minister of Investment, Khalid Al-Falih.
The government decision echoes several initiatives to boost investments, and underpins the growth of the Saudi economy.
These companies, which will be moving to Saudi Arabia, will be close to the top decision-makers, heavy-weight players, as well as other international firms in the region.
The companies, which fall under the Saudi government decision, have strong relations with the Kingdom’s government for years, and have already undertaken several infrastructure and sectoral projects.
“Inter-country, or even inter-city competition for international investments is healthy,” Al-Falih indicated.
“The GCC countries will get their share of investments and the decision won’t affect them; Saudi Arabia should generate reasonable revenues from the foreign companies’ presence in the Kingdom,” he noted.
The Saudi government announced, on Feb. 15, it would not contract any foreign company or commercial entity that has regional headquarters outside the Kingdom, starting from Jan. 1, 2024. The decision included all entities, establishments and funds affiliated to the government, Argaam reported.
Related News
Saudi Arabia not to contract foreign firms without HQ inside Kingdom starting 2024 |
Govt decision to not hire foreign firms without local headquarters has several positives: Al-Falih |
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