Saudi Arabia is emerging as an attractive destination for major multinational corporations, as more companies have decided to establish regional HQ in the Kingdom.
This remarkable progress is the product of Saudi Arabia’s tireless efforts to position itself as a global investment hub. It also reflects the success of the Kingdom’s Regional HQ Program, which aims to attract more businesses by offering various packages of incentives.
Morgan Stanley Moving to Riyadh
Morgan Stanley, a multinational investment bank based in the US, is expanding its presence in Saudi Arabia, after it got approval to set up a regional HQ in Riyadh, reported Bloomberg. Since 2007, Morgan Stanley has been present in Saudi Arabia, when it established an equity trading business in Riyadh. In 2009, it launched a Saudi equity fund.
On this occasion, Morgan Stanley’s CEO for Saudi Arabia and co-head of the bank’s Middle East and North Africa operations, Abdulaziz Alajaji, said: “Establishing a regional HQ in Riyadh reflects the growth and development of Saudi Arabia and is a natural progression of our long history in the region.”
Saudi Arabia: Attractive Destination for Firms
By receiving the approval, Morgan Stanley joins a myriad of world-renowned companies that are establishing regional HQ in Saudi Arabia. Earlier this month, Citigroup received a similar approval from the Saudi Ministry of Investment to set up a regional HQ in Riyadh, reported Reuters citing an internal memo.
Citi Saudi Arabia CEO, Fahad Aldeweesh, highlighted the significance of the move. He said in the memo: “This marks a significant leap forward for our franchise in Saudi Arabia and we look forward to our continued growth in the kingdom.”
Back in May, the Wall Street giant Goldman Sachs received a license to establish its regional HQ in Riyadh. Furthermore, several international companies have already launched their regional offices in Saudi Arabia. These include Google Cloud, Servcorp, Blackrock, Bechtel, PepsiCo, IHG Hotels and Resorts, PwC, and Deloitte.
Regional HQ Program
The emergence of Saudi Arabia as a preferred destination for international firms aligns with the Kingdom’s Regional HQ Program. It is a strategic initiative, launched in 2021, that aims to boost Saudi Arabia’s status as a global investment hub in line with the broader diversification goals of Vision 2030.
The program seeks to draw multinational companies to Saudi Arabia, with investment opportunities in the Kingdom’s mega projects and events, including the 2029 Asian Winter Games and Expo 2030, according to PwC.
The Regional HQ Program encourages multinational corporations to base their Middle East and North Africa (MENA) HQ in Saudi Arabia. It offers attractive incentives for companies, such as a 30-year tax relief, a 10-year exemption from Saudization requirements, accelerated visa processes, and access to discount and support services.
Tangible Results
The Saudi Regional HQ Program has paid off, attracting hundreds of international corporations. In October, the Saudi Investment Minister, Khalid Al-Falih, highlighted the success of the program. He noted that the Kingdom has succeeded in drawing 540 international firms to establish their regional headquarters in Riyadh, surpassing the 2030 target of 500, according to Arab News.
In the first half of 2024, Saudi Arabia experienced a surge in companies moving their regional HQ to the Kingdom, with 184 international companies receiving licenses to set up their regional HQ in Saudi Arabia.
According to the Saudi Ministry of Investment (MISA), most of the investment licenses issued were in the sectors of construction, manufacturing, professional services, education, technology, information and communications, accommodation, food services, and wholesale and retail trade.
Attracting Global Investments
As part of its revolutionary Vision 2030, Saudi Arabia has adopted major reform plans to diversify its economic revenues and attract more foreign investments. These reform plans have resulted in issuing over 28,900 investment licenses since the launch of Vision 2030.
Additionally, the Kingdom has adopted measures that aim to create an investment-friendly environment in many sectors. These include permitting 100% foreign ownership in specific sectors, facilitating commercial register procedures, streamlining visa issuance, and launching other investment-friendly initiatives.
World Investment Conference
In a further move to establish its position as a global investment hub, Saudi Arabia is currently hosting the 28th edition of the World Investment Conference (WIC 2024) in Riyadh.
The conference, held from November 25-27, 2024, brings together government and business leaders, investors, economists and international agencies to discuss current economic and social challenges that could impact the global flows of investment.
Moreover, the WIC 2024 focuses on harnessing digital transformation and sustainable growth to increase investments. It features high-level dialogues with government ministers, in-depth sessions on technology, sustainability and economic cooperation, as well as workshops presented by investment experts.
