Riyadh: The Kingdom of Saudi Arabia (KSA) has approved crucial regulations affecting government contracts with companies that do not have regional headquarters in its capital city Riyadh.
The decision was approved by Saudi Council of Ministers at a session chaired by Crown Prince Mohammed bin Salman on Tuesday, December 26 in Riyadh, the Saudi Press Agency (SPA) reported.
During the session, 15 decisions were made, several regulations were amended and more than nine international memoranda of understanding (MoU) were approved.
On December 5, Saudi Arabia announced a 30-year tax-relief package for foreign companies that establish their regional headquarters in the Kingdom.
On November 9, Saudi Investment Minister Khalid Al-Falih reported that 180 companies have obtained licenses for regional headquarters, exceeding the target of 160, adding it reaches 10 companies per week.
In February 2021, Saudi Arabia announced that it would stop contracting with any foreign company or commercial institution whose regional headquarters are not located in the Kingdom, effective from January 1, 2024.