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Al-Falih: 5 main benefits of requiring international companies to have headquarters in Saudi Arabia

The Saudi Minister of Investment, Khalid Al-Falih, identified 5 main benefits from the decision to limit government agencies’ contracting to international companies that have a regional center in the Kingdom.

Al-Falih said in His tweet on Twitter, the decision announced yesterday, Monday, will be reflected positively, in the form of creating thousands of jobs for citizens, transferring expertise, and localizing knowledge, and it will also contribute to developing local content and attracting more investments to the Kingdom.

And Saudi Arabia decided, yesterday, Monday, to stop government agencies’ contracting with any foreign commercial company or establishment that has a regional headquarters in the region outside the Kingdom, starting from 2024.

A responsible source in the Saudi government explained that the investments of international companies that are not related to government contracts will not be affected by the decision.

The source said that the Kingdom’s government is determined to stop contracting with any A foreign commercial company or establishment with a regional headquarters in the region outside the Kingdom, starting from early January 2024, and the decision includes government agencies, institutions and funds or any of its apparatus.

The source indicated that this decision comes as an incentive. To adapt the business of foreign companies and institutions that have dealings with the Kingdom’s government, authorities, institutions and funds affiliated with the government or any of its apparatus, in an effort to create jobs, reduce economic leakage, raise the efficiency of spending, and ensure that the main products and services that are purchased by the various government agencies are implemented on the territory of the Kingdom. And with appropriate local content.

He considered that this approach comes in line with the announcement of Esther’s targets The strategy for the capital of the Kingdom, “Riyadh 2030”, during the Forum for the Future of Investment Initiative that was held recently, during which the intention of 24 international companies was announced to move their regional headquarters to Riyadh.

The source confirmed that this will not affect the ability of any investor Regarding entering the Saudi economy or continuing to deal with the private sector, and the relevant controls will be issued during 2021.

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