Major global technology companies, such as Amazon, Google, and Microsoft, are expanding their presence in Saudi Arabia, according to a report by Bloomberg. The Saudi government’s database reveals that all three of these American companies have secured licenses to establish regional headquarters in Riyadh, just before the government’s deadline of January 1. This surge in activity occurred towards the end of the year as various prominent companies sought to establish local headquarters. Notable examples of other companies that recently obtained similar licenses include Airbus, Oracle, and Pfizer.
In February 2021, Saudi Arabia announced new regulations for state contracts as part of its Vision 2030 initiative, launched by Crown Prince Mohammed bin Salman to stimulate the economy and attract international investments. These licenses granted to global companies align with these plans and bolster Saudi Arabia’s position as the largest economy in the region. The country has committed trillions of dollars to diversify its economy away from reliance on the oil sector.
Microsoft acknowledged Saudi Arabia’s inclusion in the Central and Eastern Europe, Middle East, and Africa (CEMA) region, stating that they have several headquarters in the highly diverse region, including one in Saudi Arabia, according to an emailed statement.
Google stated that it is engaging with the relevant authorities to meet the requirements. Meanwhile, Airbus affirmed that its establishment in the Kingdom adheres to the country’s regulations.
Special HQ license
Under Saudi rules, companies can obtain a special license for a headquarters if they establish a center in Riyadh that meets specific criteria, such as having at least 15 employees and operating in two other countries. In return, Riyadh offers incentives like tax exemptions and relaxations in employment regulations for Saudi nationals.
In December, the government announced a 30-year tax exemption for companies granted permits for designated regional headquarters. The Ministry of Investment reported in a statement that more than 200 companies have already secured licenses for headquarters. Notable among them are Bechtel, PwC, and PepsiCo, which have already announced their intentions to establish Riyadh as a regional headquarters for their operations.
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