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The Kingdom of Saudi Arabia's flag
Saudi Arabia will no longer give contracts to any foreign company or commercial agency that has its regional headquarters (HQ) outside the Kingdom from today, Jan. 1.
In February 2021, Saudi Arabia granted multinationals a grace period to adjust their status for establishing regional headquarters in Riyadh.
This comes as an incentive to streamline the operations of foreign companies and corporations that deal with the Kingdom's government, its agencies, institutions, and funds.
The move aims to create jobs, reduce economic leakage, enhance spending efficiency, and ensure that the key products and services purchased by various government entities are implemented within the Kingdom with appropriate local content.
Last November, Minister of Investment Khalid Al-Falih said the total number of companies that obtained licenses for their HQs in Saudi Arabia reached 180, above the target of 160, Argaam earlier reported.
The Saudi Cabinet recently approved rules for contracting multinationals that have their headquarters outside the Kingdom.
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