RIYADH: Saudi Arabia has outperformed its target for attracting regional headquarters, with over 180 companies now established in the Kingdom. 

This number surpasses the initial goal of securing 160 HQs by the end 2023, as disclosed by Minister of Investment Khalid Al-Falih.

In an interview with Bloomberg, Al-Falih emphasized that the regional headquarters program is part of a “long-term journey,” adding that the Kingdom is working with international entities to create the “right ecosystem” to open their offices in Saudi Arabia.  

Some of the noted companies that opened their regional headquarters in Saudi Arabia in recent months are PwC Middle East and GE Healthcare. 

“We had a target by year-end to have 160 regional headquarters for global companies. So far, the year is not up yet, and we have issued 180 licenses. In fact, the rate is picking up to the tune of 10 companies per week that are being licensed in Saudi Arabia, and they are being provided with a good set of incentives,” the minister revealed.  

This trend of corporate relocations aligns with Saudi Arabia’s policy, first introduced in early 2021, which mandates international companies to set up their regional headquarters in Riyadh if they intend to secure government contracts. 

He added that the Kingdom has been a “friendly” and “stable jurisdiction” for international investors with a very stable economic and political system, at a time of geopolitical tensions and economic headwinds.   

“Beyond the current situation in Europe and the Middle East, people will look around and find Saudi Arabia is the best destination to invest in. It is happening now, and we believe, we will transition through the set of crises going on now, and Saudi Arabia will continue to be a very attractive destination for investment,” said Al-Falih.  

During the conversation, the minister revealed that Saudi Arabia ranked 10th globally in terms of foreign direct investment inflows based on data from 2021 and 2022, attracting FDI worth $33 billion.

“It is the impact of Vision 2030. Within 2016 and 2022, our FDI has grown significantly by double digits on an annual basis,” he added.  

Discussing the automotive industry, the minister highlighted Saudi Arabia’s commitment to sustainability and mentioned the Kingdom’s plans to produce 500,000 electric vehicles in the coming years.