Saudi Arabia has announced a strategic initiative aimed at enticing foreign companies to establish their regional headquarters within the Kingdom by offering significant tax breaks, including a 30-year corporate income tax exemption. These lucrative incentives are available to international entities that choose to relocate their regional bases to Saudi Arabia, starting from the issuance date of their regional headquarters license, as stated by the Ministry of Investment.
The Kingdom has launched this program as a collaborative effort between the Ministry of Investment and the Royal Commission for Riyadh City. It seeks to draw global businesses to set up their Middle Eastern and North African regional hubs in Saudi Arabia by offering a suite of advantages and tax reliefs.
Khalid Al Falih, Saudi Arabia’s Minister of Investment, indicated that the Kingdom has crafted additional perks for companies that align with Saudization policies. Over 200 companies have already shifted their headquarters to Saudi Arabia, drawn by its business-friendly climate.
Mohammed Al-Jadaan, the Saudi Finance Minister, commented on the new tax exemptions for the activities of international companies’ regional headquarters in the Kingdom. As reported by Al-Ekhbariya, he emphasized that such measures provide firms with greater predictability for strategic planning and facilitate their expansion in the region, using Saudi Arabia as a launchpad.
In a prior statement, Al-Falih mentioned that the regional headquarters program had exceeded its initial goal of attracting 160 international firms by the end of the year. In discussions with Bloomberg, he said that although the journey is ongoing, efforts are being made to establish the optimal ecosystem for international entities to flourish in Saudi Arabia.
Notable corporations like PwC Middle East and GE Healthcare have recently inaugurated their regional headquarters in Saudi Arabia. The Kingdom is positioning itself as a stable haven for international investments, amidst global geopolitical tensions and economic challenges.