Saudi Arabia exceeds 2030 target for regional HQs

Saudi Arabia exceeds 2030 target for regional HQs

Global companies opening regional headquarters in Saudi Arabia have exceeded the Vision 2030 target, the investment minister has said.

The number of companies setting up their main regional base in the kingdom has reached 571, primarily in the industrial sector, Khalid Al Falih told Asharq Business, an Arabic-language financial portal.

The Gulf state, he said, has moved beyond the HQ goals and is working to get global companies to contribute to Saudi Arabia’s economic development.

The regional HQ programme is part of plans to make Riyadh one of the world’s 10 largest city economies by 2030 and increase its population to as many as 20 million.

These companies will be exempt from corporate tax for 30 years, in addition to relaxed requirements for Saudisation – the programme to increase employment of Saudi nationals – and offering work permits for the spouses of company executives.

Saudi Arabia has allocated SAR10 billion to activate standard incentives in the industrial sector, minister of industry and mineral resources Bandar Alkhorayef said, adding these incentives will be launched in phases.

The first phase will target investments in the chemical, automotive, as well as the machinery and equipment sectors.

The incentives will lower the high cost of capital for medium-sized companies in the kingdom compared to other emerging countries and build on developing value chains.

In October, the International Monetary Fund lowered its GDP growth forecast for Saudi Arabia for 2024 to 1.5 percent – below the average of 2.4 percent for the Middle East and Central Asia region. However, growth in Saudi Arabia is expected to accelerate to 4.6 percent in 2025.

The kingdom has set a target of attracting $100 billion a year in foreign direct investment by 2030.

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