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January 1, 2024 is the deadline for moving the global regional headquarters and multinational companies to the capital, Riyadh. Global and multinational companies are given the opportunity to open regional headquarters in Saudi Arabia, and the opportunity to compete for government projects in all its forms.
Saudi Arabia has been able, in light of its almost unstoppable achievements as a result of Vision 2030, to truly represent a gain for all those companies that bet on its presence by moving its regional center to Riyadh. Riyadh, which was recently announced as the winner of Expo 2030, representing a larger capital economy in the region, which produces more than 60% of the non-oil GDP in Saudi Arabia.
Riyadh also represents unlimited opportunities for profitable contracts and investments with amazing purchasing power. The initiative to attract regional headquarters aims to move 480 regional headquarters by 2030.
Facilities and support
The Ministry of Investment, in coordination with the Ministry of Finance and the Zakat, Tax and Customs Authority, announced the introduction of a new tax incentive package for a period of 30 years to support the program to attract regional headquarters of international companies. This is to encourage and facilitate the procedures for international companies to open their regional headquarters in the Kingdom of Saudi Arabia within the framework. The Saudi Program to Attract Regional Headquarters for international companies, which is a joint initiative between the Ministry of Investment and the Royal Commission for the City of Riyadh, and aims to make Saudi Arabia the first choice for these companies in the Middle East and North region of Africa, by offering them a range of benefits and distinguished support services.
This tax exemption package includes a zero percent rate for income tax on regional headquarters entities, and withholding tax for approved activities of regional headquarters.
Only multinational companies with regional headquarters in Saudi Arabia will be eligible for tenders and contracts offered by government agencies.
Flexible requirements
The Minister of Investment was quoted on more than one occasion as confirming that granting tax incentives to the regional headquarters of international companies in Saudi Arabia is an important incentive to make the Kingdom of Saudi Arabia a major center for those regional headquarters in the region, other than benefits such as flexible Saudization requirements and attracting competent talents.
The Kingdom looks forward to welcoming more international companies to participate in projects in all sectors, including mega projects, and major events, such as the Asian Winter Games in 2029 and the Expo in 2030.
Unique characteristics for investment in Saudi Arabia
Currently, according to the numbers and international certificates of the best global economic institutions, no one competes with the Kingdom of Saudi Arabia in what it achieves on a daily basis on the map of the global economy and politics, and at all levels, ahead of many countries in the G20, moving regional headquarters to the Kingdom of Saudi Arabia is beneficial to Global and multinational companies.. It is an office that provides support, management, and strategic direction to that company’s branches and subsidiaries in the Middle East and North Africa region.
Reference/ Citation
https://misa.gov.sa/ar/investment-license/
