Over 120 international companies received licenses in the first quarter (Q1) of 2024 to relocate their regional headquarters (HQs) to Saudi Arabia, a 477 percent increase year-on-year. According to Saudi Arabia’s Ministry of Investment (MISA), the 127 permits issued in the first three months underscores the Kingdom’s attractive and favorable business environment.
Aligning with Vision 2030 diversification
This drive to attract regional bases aligns with Saudi Arabia’s Vision 2030 initiative to diversify the economy. New tax incentives for multinational companies include a 30-year exemption on corporate income tax and withholding tax related to HQs activities, as well as discounts and support services.
New HQs requirements
Recent laws in Saudi Arabia require companies with state contracts to establish a regional HQs in the Kingdom with a minimum of 15 employees. During Q1 2024, the ministry also processed 445 applications for investor visit visas, allowing overseas businesses to explore opportunities.
Investment deals and licensing
Additionally, the ministry closed 64 investment deals and issued 3,157 investment licenses, a 92.9 percent increase compared to the previous year. Key sectors included construction, manufacturing, vocational/education/tech, and ICT. The real estate sector saw the highest growth at 253.3 percent year-on-year.
Increased service delivery
Over 58,000 services were provided through the ministry’s electronic platform in Q1, up 29 percent from the prior year. Experts believe the regional HQs program and free economic zones could further accelerate foreign direct investment in Saudi Arabia going forward.
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