RIYADH: Ten additional global firms have become eligible for government contracts in Saudi Arabia by establishing their regional headquarters at Riyadh’s King Abdullah Financial District, revealed its CEO. ‘

Gautam Sashittal said during a panel discussion titled “The Role of Business in Advancing Sustainable Development” in the Saudi capital that these companies are from Europe, the US, and China, as reported by Al-Eqtisadiah newspaper. 

Sashittal also noted that several other foreign companies are planning to move to the financial center. He highlighted that global firms such as Alstom, Alibaba Cloud, and Pfizer, along with consulting giants Arthur D. Little and Roland Berger, have already established their headquarters at KAFD.

In February, Saudi Arabia announced the issuance of licenses to 450 international investors under the Regional Headquarters Program, a joint initiative by the Ministry of Investment and the Royal Commission for Riyadh City. 

The CEO noted that only 50 percent of the district has been developed, with the remainder to be completed in phases.  

Covering a total land area of 1.6 million sq. meters and offering 3.2 million sq. meters of gross floor area, the development features over 2,900 residential units, more than 6,100 five-star hotel keys, and branded apartments.  

Following its acquisition by Saudi Arabia’s Public Investment Fund, KAFD has emerged as a key business and lifestyle hub aligned with Vision 2030. 

Redefining Riyadh’s skyline with buildings inspired by the local landscape, KAFD provides advanced office infrastructure, sustainable smart city solutions, and premier leisure and retail amenities, according to its website. 

Earlier this week, King Abdullah Financial District Development and Management Co. joined the UN Global Compact, marking a major step towards promoting sustainable business practices. The announcement at the KAFD Conference Center in Riyadh underscores the company’s commitment to the world’s largest corporate sustainability initiative. 

Saudi Arabia’s push to attract regional headquarters aligns with Vision 2030, aiming to diversify the economy through new tax incentives for multinational companies. Relocating firms benefit from a 30-year exemption from corporate income and withholding taxes, alongside various discounts and support services. 

New regulations mandate that companies with state contracts must establish regional headquarters in the Kingdom with at least 15 employees. Starting early 2024, the Saudi government will not engage with foreign firms that do not relocate their regional offices to the Kingdom, a move designed to boost investment, create jobs, and minimize economic leakage.