RIYADH: Saudi Arabia has encouraged Russian companies to establish their headquarters in the Kingdom to boost technology transfer, localize advanced technologies and provide cost-competitive raw materials to its market.

Saudi-Russian Business Council Chairman Tariq Al-Qahtani disclosed this during a recent joint meeting between the two nations, according to a post on X, formerly Twitter. 

The move aligns with Saudi Arabia’s ambitious goal of becoming a regional hub for foreign direct investments, in line with the economic diversification goals outlined in Vision 2030. 

The Kingdom aims to reduce its dependence on oil revenues by transforming the nation into a trading hub.

During the meeting, Al-Qahtani revealed that work is underway to settle and formalize several Saudi-Russian industrial partnerships and agreements.

The chairman also shed light on the ongoing preparations for the visit of a large delegation of Russian businessmen and firms to Riyadh in November.

He emphasized that sectors including light and heavy industries, maritime and air transport are encouraged to collaborate closely. This list also includes infrastructure, contracting, agriculture and finance.

In May, Saudi Arabia hosted the Made in Russia +Innoprom business mission, bringing over 100 Russian companies to exhibit their advanced technologies.

Russian Deputy Minister of Industry and Trade Alexei Gruzdev led the delegation of top companies, including Russian Helicopters, Transmashholding, Rostselmash Agricultural machines, Power Machines and Kaspersky.

In March, Saudi Investment Minister Khalid Al-Falih said during an interview with the British newspaper Financial Times that multinational companies relocating their headquarters to Saudi Arabia in 2023 to secure government contracts could get tax exemptions.

In March 2021, Al-Falih told Arab News that companies that choose to set up or relocate their headquarters in the Kingdom will not have Saudization forced on them.

Despite the projection that Russia’s 2023 growth is expected to fully offset the decline experienced in the previous year, as stated by President Vladimir Putin in August, the country is still facing a challenging outlook due to the ongoing conflict between Russia and Ukraine.

The authorities are counting on growth of more than 2 percent by the end of the year, the head of state noted at the time.