Over 550 firms set up regional headquarters in Saudi Arabia

Saudi Arabia’s drive to establish itself as a Middle East hub for international business while shifting its economy from dependence on oil is making progress, according to Investment Minister Khalid Al-Falih.

Speaking at the World Investment Conference in Riyadh on Monday, Al-Falih said more than 550 firms have established regional headquarters in the kingdom, making reference to announcements last week by Citibank and Morgan Stanley on their expanded Saudi offices.

Saudi Arabia introduced a policy this year requiring foreign firms to set up regional hubs in the kingdom as a prerequisite to winning government contracts. Compliance comes with perks, including a 30-year exemption from corporate income tax and access to discounts and support services.

Al-Falih, who is trying to coax more countries to put their money in Saudi Arabia, opened the conference by reporting that foreign direct investment has tripled since 2016, when the kingdom introduced its Vision 2030 economic overhaul plan.

“We are confronted with crosswinds to global investments – driven forward on one hand by the tech revolution, booming stock markets, and the onset of promising monetary policies, while constrained on the other hand by geopolitical instabilities, trade barriers, and talent and skill shortages,” Al-Falih said.