RATP Dev Opens Its Regional Headquarter in Saudi Arabia
RATP Dev, the independent French transport authority, has opened its regional headquarter in Riyadh, Saudi Arabia, reported Aleqtisadiah. It will serve as the main headquarters for the Middle East and North Africa region.
RATP Dev Optimistic About Transport Sector in KSA
RATP Dev looks optimistically towards public transportation projects in Saudi Arabia. During the inauguration of its regional headquarters in Riyadh, the company affirmed its collaboration with partners in the Kingdom on various projects. These projects involve the operation and maintenance of Riyadh’s buses, as well as the first and second lines of the Riyadh Metro project. Additionally, it expressed anticipation for other projects in NEOM, Qiddiya, and Diriyah.
Hiba Farès, Chairwomen of the RATP Dev Executive Board, one of the world’s largest public transport operators, managing bus, tram, metro, and electronic vehicle, told “Aleqtisadiah” that Saudi Arabia is on the verge of a major breakthrough in public transportation.
Relocating Headquarters
Saudi Arabia implemented a pivotal policy, with a January 2024 deadline, urging international firms desiring to clinch government contracts to relocate their regional headquarters to Riyadh. The Saudi Government signaled its intention to limit contractual engagements with foreign firms lacking a regional headquarters in the Kingdom.
By October 2023, a total of 44 multinational companies had heeded the call, obtaining licenses to establish their regional headquarters in Riyadh. These firms span a diverse array of sectors including technology and food & beverage, among others.
Tax Incentives
In December last year, the Ministry of Investment announced a new package of tax incentives for 30 years. This package aims to encourage global companies to open their regional headquarter in Saudi Arabia and facilitate the process.
The Saudi program to attract global companies’ regional headquarters is a joint initiative between the Ministry of Investment and the Royal Commission for Riyadh.
Furthermore, the program aims to attract global companies to establish their regional headquarters in KSA. Therefore, this makes the Kingdom the first choice for these companies in the Middle East and North Africa region. The Kingdom would offer a range of benefits and exceptional support services to them.
The 30-year tax exemption package for regional headquarters includes a zero percent rate for both: income tax on regional headquarters entities and withholding tax for the approved activities of the regional headquarters. Global companies will benefit from the tax exemption package starting from the date the regional headquarters license is issued.
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