Saudi Arabia Grants Licenses to 162 Headquarters for Global Companies
Saudi Arabia has made remarkable strides by issuing licenses to 162 regional centers until the third quarter of 2023. The Saudi government is consistently aiming to elevate the nation’s economic landscape and these achievements reinforce its commitment towards a future rich with opportunities and growth.
Key Achievements in The Investment Sector
The Ministry of Finance in Saudi Arabia highlighted that one of the key achievements in its preliminary statement for the 2024 budget was the issuance of licenses to over 162 regional centers by the end of Q3 2023. This move is particularly significant as it resonates with the Saudi strategy to entice global companies to establish their regional headquarters in the Kingdom. Notably, the program, named “The Saudi Program for Attracting Regional Headquarters of Global Companies,” launched on March 7, 2023, is under the supervision of the Board of Directors of the Royal Commission for Riyadh City, headed by Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud.
Economic Impact and Job Creation
Fahd bin Abdulmohsen Al-Rasheed, the CEO of the Royal Commission for Riyadh City, emphasized that the program is expected to inject approximately SAR 67 billion ($18 billion) into the local economy. Moreover, it is projected to create around 30,000 new job opportunities by 2030, thereby positively influencing the nation’s socio-economic dynamics.
Enhanced Provisions for Regional Headquarters
The Ministry of Investment has established mechanisms for granting premium residency to executives at regional headquarters, in coordination with the Center for Premium Residency. Additionally, it worked alongside the Ministry of Municipal, Rural Affairs, and Housing to create an exemption mechanism, allowing regional headquarter companies desiring to establish a branch within the Kingdom to do so. In collaboration with the Ministry of Human Resources and Social Development, incentives have been activated for regional headquarters regarding employees, such as providing visas according to company needs and allowing spouses to work under each other’s residency, extending legal age for children to stay with regional headquarters’ employees to 25 years.
Special Path for Business Records
Furthermore, the Ministry of Investment, in tandem with the Ministry of Commerce, has activated a special path for issuing commercial registrations for regional headquarters companies, streamlining the processes and facilitating smooth transitions for international corporations setting up in Saudi Arabia.
Launching of “Meza” Platform
Adding to its innovative strides, the Ministry of Finance also launched the “Meza” platform, which streamlines investors’ access to business service providers from the private sector in four areas: business establishment services, financial and tax consultancy services, logistic services, and headquarters relocation services, which include the process of issuing licenses and subsequent government approvals for the commercial register and assisting companies in finding suitable office spaces, housing, and schools for employees’ families.
Diverse Investment Opportunities
The preliminary statement for the 2024 budget indicated that over 1283 investment opportunities across various economic sectors have been displayed on the Invest in Saudi Arabia platform. Moreover, special economic zones in the Kingdom have attracted investments exceeding SAR 47 billion until the first half of 2023, diversifying across vital sectors including marine industry, mining, manufacturing, logistic services, and modern technologies.
The strides made by Saudi Arabia in establishing itself as a beacon for global investment, particularly in inviting companies to set their regional headquarters within its borders, stands as a testament to its robust and strategically formulated economic policies. These steps not only amplify the Kingdom’s position on the global economic stage but also significantly contribute to the realization of its long-term vision for a prosperous future.