Saudi Arabia has granted licenses to 44 multinational companies to set up regional headquarters in its capital city, Riyadh, in line with the country’s efforts to become a commercial hub.
The licenses were issued at the 5th edition of the Future Investment Initiative (FII), attended by the world’s most influential leaders in business and government.
Among the 44 companies are multinationals in sectors including technology, food and beverages, consulting and construction such as Unilever, Baker Hughes, Deloitte and Siemens.
Through the Regional Headquarters Attraction Program of Multinational Companies, these companies now have direct access to the region’s largest economy, gaining financial and geographic opportunities. The world’s top oil exporter said that it would give foreign firms time until the end of 2023 to set up headquarters in the country or risk losing out on government contracts.
The move, which is part of efforts by Crown Prince Mohammed bin Salman to deviate the economy from oil by creating new industries that also generate jobs for Saudis, has put the kingdom in competition with the regional business hub, the UAE.
Commenting on the new move, Mr. Khalid Al-Falih, Saudi Arabia’s Minister of Investment, said, “I am delighted by the number of multinational companies that have chosen to relocate to Riyadh, demonstrating that our national capital is becoming an increasingly attractive place to do business and developing into an investment destination of choice.”
The new headquarter establishments would add $18 billion to the economy and offer around 30,000 job opportunities by 2030, the President of the Royal Commission for Riyadh City, Mr. Fahd al-Rasheed, said in a statement.
Earlier this year, the kingdom said that 24 companies had signed agreements to establish main regional offices including PepsiCo, Schlumberger, Deloitte, PwC and Bechtel.
