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Saudi Arabia’s government will not contract any foreign company or commercial entity that has headquarters in the region, other than the Kingdom, starting from Jan. 1, 2024, SPA reported, citing an official source.
The decision includes all entities, establishments and funds affiliated to the government.
The move comes to stimulate the business of foreign companies that deal with the entities, establishments and funds affiliated to the government.
It also aims to provide jobs and enhance spending efficiency to ensure that all products and services procured by the government bodies are made in the Kingdom using appropriate local content.
Moreover, the decision comes in line with the strategy for Riyadh going into 2030, as stated in the Future Investment Initiative (FII) conference. The move will unlikely affect investors’ ability to invest in the Saudi economy or maintain dealing with the private sector, the source added, noting that the related regulations will be issued in 2021.
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