From the Saudi Press Agency:
An official source stated that the Kingdom of Saudi of Arabia intends to cease contracting with companies and commercial institutions with regional headquarters not located in the Kingdom. The cessation will include agencies, institutions and funds owned by the government and will take effect January 1st, 2024.
The source stated that the decision aims to incentivize the localization of businesses by foreign companies that deal with the Kingdom’s government or any of its agencies, institutions and funds, in addition to creating more jobs, limit economic leakage, increase spending efficiency, and guarantee that the main goods and services purchased by the different government agencies are made in the Kingdom with appropriate local content.
This comes after the Financial Times first reported last month that Crown Prince Mohammed bin Salman was spearheading an initiative called “Programme HQ” to convince multinationals to relocate their headquarters from Dubai to Riyadh. When the Public Investment Fund hosted its annual conference in late January, the government said 24 companies, including PepsiCo and Bechtel, intend to open regional offices in the kingdom as part of a major development plan for the Saudi capital.
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