Saudi Arabia will no longer sign contracts with foreign companies without a regional headquarters inside the Kingdom starting from Jan 01, 2024.
The cessation will include agencies, institutions, and funds owned by other governments.
It will create more jobs for Saudi Arabia, avoid leakage of funds from Saudi Arabia. The companies will have to show their local presence to bid for the government contracts.
The SPA has reported that 24 international companies announced their intent to move their regional headquarters to Riyadh.
Is it applicable to the private sector too?
If a company refuses to move its headquarter to Saudi Arabia, it is absolutely their right and they will continue to work with the private sector in Saudi Arabia.
However, as long as it is related to the government contracts, they will have to have their regional headquarters here in Saudi Arabia.
Source: Al Arabiya