Saudi Arabia pushes the headquarters of companies showing success, officials say

File photo: An overview of the city of Riyadh after the Saudi government relaxed the curfew after the outbreak of coronavirus disease (COVID-19) in Riyadh, Saudi Arabia on May 7, 2020. REUTERS / Ahmed Yosri

October 24, 2021

By Yousef Saba and Saeed Azhar

Riyadh (Reuters) – Saudi Arabia’s efforts to encourage companies to set up regional headquarters in Riyadh have been successful and are not aimed at dismantling business activities elsewhere, Saudi officials said.

The world’s largest oil exporter and largest Arab economy has been at risk of establishing headquarters in foreign companies or losing government contracts for foreign capital and human resources until the end of 2023.

Riyadh City Royal Commission Chairman Fahd Al-Rashid told Reuters that there have been “many successes” in attracting multinational corporations, details to be announced at Saudi Arabia’s flagship investment forum FII starting Tuesday. rice field.

“Companies want to move here. They decide to come soon after they know about the investment opportunities and the types of full offers we offer,” Rashid said on Saturday in Saudi Arabia’s climate. I told the bystanders of the forum.

“It’s not about dismantling what companies are doing in other cities in the region,” he said, and urged multinationals that don’t exist in the region to set up stores.

Saudi Arabia, under the auspices of Crown Prince Mohammed bin Salman, has yet to reveal the number of companies that have relocated to make the kingdom a regional business hub, competing with the commercial center of the United Arab Emirates. I am.

Several foreign companies, including PepsiCo, Schlumberger and Bechtel, agreed earlier this year to set up a regional office in Saudi Arabia rather than overseeing operations away from Dubai.

Dubai media companies also began moving staff to Riyadh last month, sources said.

“We give incentives on a sector-by-sector basis. It’s not a comprehensive incentive process,” said Rasheed, adding that seducing the investment banking sector is “very easy”.

He quoted Prince Mohammed’s plan to pull the economy away from oil by building new industries and launching megaprojects, as well as Riyadh’s upcoming concrete strategy.

“Riyadh’s sustainability strategy alone is a $ 40 billion investment opportunity for the private sector. This opportunity is unprecedented in the world as it needs to be built by investment banks,” he said. I did.

Saudi Arabia is working to improve its quality of life with plans to double the population and economy of the capital, which currently houses about 7 million people, over the next decade.

(Report by Yousef Saba and Saeed Azhar, edited by David Evans)

Saudi Arabia pushes the headquarters of companies showing success, officials say

Source link Saudi Arabia pushes the headquarters of companies showing success, officials say

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