Saudi Gazette report
RIYADH — Finance Minister Mohammed Al-Jadaan announced on Wednesday that Saudi Arabia will implement its January 2024 deadline requiring international firms that wish to secure government contracts in the Kingdom to relocate their regional headquarters to Riyadh.
“In the event of failure to comply with the deadline on the part of any companies, they will lose their contracts with the government,” the minister said.
In February 2021, Saudi Arabia announced plans to stop dealing with contracting companies without regional headquarters based in the Kingdom by Jan. 1, 2024. This was part of efforts to create more jobs for Saudi men and women, boost inflow of investment and ensure economic diversification plans within the goals of the Saudi Vision 2030 and the strategic plan for Riyadh. The government revealed at that time that this matter would not affect the ability of any investor to enter the Saudi economy or continue dealing with the private sector.
According to an official source, Saudi Arabia is determined to stop giving government contracts to any foreign company or commercial institution with regional headquarters outside the Kingdom. The decision covers contracts by institutions, bodies and funds affiliated with the government or any of its agencies. The rules and regulations related to this will be issued in the current year 2023, the source added.
Speaking at the 7th Future Investment Initiative (FII7) forum in Riyadh on Wednesday, Al-Jadaan said that the Kingdom was no longer focusing on domestic product figures, but rather on the development of the non-oil sector, which is expected to grow by 6 percent this year. “We hope it continues to grow next year and beyond around that number,” he added.
