Connect with us

Hi, what are you looking for?

Stock

Saudi push on company headquarters showing success, says official

Stock Markets48 minutes ago (Oct 24, 2021 09:40AM ET)

(C) Reuters. FILE PHOTO: General view of Riyadh city, after the Saudi government eased a curfew, following the outbreak of the coronavirus disease (COVID-19), in Riyadh, Saudi Arabia, May 7, 2020. REUTERS/Ahmed Yosri

By Yousef Saba and Saeed Azhar

RIYADH (Reuters) – Saudi Arabia’s push for firms to set up regional headquarters in Riyadh is proving successful and is not aimed at dismantling corporate operations elsewhere, a senior Saudi official said.

The world’s top oil exporter and largest Arab economy has given foreign firms until the end of 2023 to set up headquarters or risk losing out on government contracts as it competes for foreign capital and talent.

Fahd al-Rasheed, president of the Royal Commission for Riyadh City, told Reuters there has been “a lot of success” in attracting multinationals and that details would be announced at Saudi’s flagship investment forum FII which starts on Tuesday.

“Companies want to move here. Once they learn about the investment opportunities and the kinds of full offer that we provide them, they immediately decide to (come),” Rasheed said, speaking on the sidelines of a Saudi climate forum on Saturday.

“It’s not about dismantling what companies are doing in other cities in the region,” he said, also urging multinationals without a regional presence to set up shop.

Saudi Arabia has yet to disclose how many companies have relocated under the drive by Crown Prince Mohammed bin Salman to make the kingdom a regional business hub, putting it in competition with commercial centre the United Arab Emirates.

Several foreign companies, including PepsiCo (NASDAQ:PEP), Schlumberger (NYSE:SLB) and Bechtel, agreed earlier this year to set up regional offices in Saudi Arabia rather than overseeing operations remotely from Dubai.

Saudi media companies in Dubai have also started to move staff to Riyadh, sources said last month.

“We’re giving incentives per sector, it’s not a blanket incentive process,” Rasheed said, adding that it would be “super easy” to lure the investment banking sector.

He cited Prince Mohammed’s plan to wean the economy off oil by building new industries and launching megaprojects, and a specific strategy for Riyadh due to be announced soon.

“Just the Riyadh Sustainability Strategy, it’s a $40 billion investment opportunity for the private sector. This needs to be structured by investment banks, so the opportunity is unprecedented across the globe,” he said.

Saudi Arabia plans in the next decade to double the population and economy of its capital city, currently home to some 7 million people, and has moved to improve quality of life.

Saudi push on company headquarters showing success, says official

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

World News

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered...

World News

George Soros and Bill Gates are part of a consortium acquiring a British developer of rapid-testing technology, including for Covid-19 and tropical diseases,...

Tech

If you parked your car in one of the thousands of parking spots across Calgary, there’s a good chance you paid the Calgary Parking...

Investing

ForexMay 27, 2021 02:04AM ET (C) Reuters. By Peter Nurse Investing.com — The dollar edged higher in early European trade Thursday, finding support from...

Disclaimer: Yourmorningvoice.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. Copyright © 2021 Your Morning Voice. All Rights Reserved