Saudi Arabia has announced tax incentives for foreign companies that choose to establish their regional headquarters in the country. The incentives include a 30-year exemption from corporate income tax and zero income tax for foreign entities moving their headquarters to Saudi Arabia. The program is a joint initiative between the Ministry of Investment and the Royal Commission for Riyadh City, aiming to attract international companies to set up their regional headquarters in the Middle East and North Africa region. The Minister of Investment, Khalid Al Falih, stated that the Kingdom is offering additional benefits to firms that comply with Saudization requirements.
The friendly business environment in Saudi Arabia has already led over 200 companies to relocate their headquarters to the Kingdom. Saudi Finance Minister, Mohammed Al-Jadaan, emphasized that the new tax exemptions will provide clarity and stability to international companies, enhancing their ability to plan for the future and expand their business in the region. Al-Falih mentioned that Saudi Arabia has exceeded its target of attracting 160 international firms through the regional headquarters program. He also highlighted that the Kingdom is working with international entities to create the right ecosystem for opening offices in Saudi Arabia.
Notable companies such as PwC Middle East and GE Healthcare have already established their regional headquarters in Saudi Arabia. Al-Falih further emphasized that Saudi Arabia remains a stable destination for international investors, even amidst geopolitical tensions and economic challenges.