Multinational Companies Race Against Time to Open Headquarters in Saudi Arabia
In Riyadh, a wave of celebrations marks the opening of multiple multinational company offices. These companies face a final deadline of January 1st to establish regional headquarters in Saudi Arabia or miss out on government project opportunities.
Recently, CEOs meeting with Saudi officials has become common, striving to open new offices.
Saudi Investment Ministry’s Stance
The Saudi Ministry of Investment confirms the deadline for relocating company headquarters is January 1st. Multinational companies are part of the “Regional Headquarters Program”. Consequently, the companies will be well-placed to bid for Saudi government-funded projects.
Qualification for Government Contracts
According to the ministry, only multinationals with regional headquarters in Saudi Arabia will qualify for government contracts.
So far, 162 licenses have been issued for companies to establish regional headquarters in sectors like pharmaceuticals, IT, and construction. Also, many more are in the process.
Riyadh defines a regional headquarters as an office providing support, management, and strategic guidance to branches and subsidiaries in the Middle East and North Africa.
IHG Hotels & Resorts opened a new office in Riyadh’s financial district, employing 25 staff across various departments including sales, marketing and design.
Long-standing Presence and Future Plans
IHG’s regional head mentioned their 50-year presence in Saudi Arabia and active bids for government projects, including those along the Red Sea coast. They also plan to open twenty hotels across the Kingdom between 2024 and 2025.
Obtaining the license for their new office was challenging, but IHG is now optimistic and happy about its establishment.
More and more companies are looking forward to have headquarters in Saudi Arabia.