Re: [Salon] Riyadh draws over 200 companies seeking government contracts in Saudi Arabia

Saudi Gazette report

RIYADH — Riyadh, the capital city of Saudi Arabia, has become the new regional headquarters for more than 200 international companies.

These firms have aligned with the upcoming policy that mandates international companies to relocate their headquarters to the Kingdom if they wish to secure government contracts post Jan. 1, 2024.

The policy, which aims to bolster Riyadh’s position as a global commercial hub, has already seen a significant influx of corporate migrations.

Companies across various sectors, including energy, technology, healthcare, and hospitality, have established their regional bases in Riyadh.

Notable among them are European giants such as Schneider Electric, ABB, Siemens, Philips, Schlumberger, and Egis Group.

From the United States, prominent firms like Northern Trust, Bechtel, White & Case, GE Healthcare, Pepsico, and Baker Hughes have made the move.

The UK is represented by IHG Hotels and Resorts, PwC, Deloitte, and Unilever, while major Chinese corporations like BGI, Nuctech, Dahua Technology, iMile Delivery, Huawei, and China Comservice have also joined the fray.

These relocations, primarily occurring between 2021 and 2023, have been spurred by attractive incentives offered by the Saudi government.

These include a 30-year exemption on corporate income tax and withholding tax related to headquarters activities, alongside exclusive discounts and comprehensive support services such as relocation, concierge, facilitation, and professional advice.

The strategic move is expected to significantly contribute to the Kingdom’s economic development, facilitating major projects such as NEOM, Expo 2030, and Qiddiya.

This initiative marks a pivotal shift in Riyadh’s global economic role, reinforcing Saudi Arabia’s vision to diversify its economy and reduce its dependence on oil.


On Tue, Jan 2, 2024 at 12:10 PM Chas Freeman <cwfresidence@gmail.com> wrote:

Riyadh draws over 200 companies seeking government contracts in Saudi Arabia

GE Healthcare, Pepsico and Schneider Electric have set up base in Riyadh


Stock - Saudi economy / Riyadh skyline International companies are flocking to Riyadh as the economy diversifies. Image Credit: Bloomberg

Riyadh: Saudi capital Riyadh has emerged as a new regional hub for over 200 international companies, aligning with an upcoming Saudi government policy.
Effective January 1, 2024, the policy requires international firms to establish their regional headquarters in the Kingdom to be eligible for government contracts.


The move is part of Saudi Arabia’s strategy to strengthen Riyadh’s status as a global commercial centre and has led to many corporate relocations. 
Companies from diverse sectors, including energy, technology, healthcare, and hospitality, have already established their regional bases in Riyadh.


European powerhouses like Schneider Electric, ABB, Siemens, Philips, Schlumberger, and Egis Group are among the notable entrants. Companies such as Northern Trust, Bechtel, White & Case, GE Healthcare, Pepsico, and Baker Hughes have relocated from the United States. The UK has seen firms like IHG Hotels and Resorts, PwC, Deloitte, and Unilever move to Riyadh. Major Chinese corporations, including BGI, Nuctech, Dahua Technology, iMile Delivery, Huawei, and China Comservice, have also joined.


The influx, primarily between 2021 and 2023, has been encouraged by the Saudi government’s attractive incentives. These include a 30-year exemption from corporate income tax, withholding tax on headquarters activities, exclusive discounts, and comprehensive support services covering relocation, concierge, facilitation, and professional advice.
Such a strategic initiative is expected to significantly boost the Kingdom’s economic development and support significant projects like NEOM, Expo 2030, and Qiddiya. 


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