Saudi deadline on regional HQs has foreign firms scrambling -sources | Reuters
Foreign companies are scrambling to meet a Saudi deadline to locate their regional headquarters in the kingdom by January amid a lack of clarity over regulation, tax and potential incentives to encourage the move, executives told Reuters.
Firms risk losing hundreds of billions of dollars in government contracts in Saudi Arabia if their regional headquarters are based elsewhere.
The ultimatum, part of efforts by Crown Prince Mohammed bin Salman to wean the economy off oil by creating new industries that also generate jobs for Saudis, has put the kingdom in competition with regional business hub, the United Arab Emirates.
Senior executives involved in the discussions said some companies have complained the government still needs to clarify key regulations on the programme, including taxation and whether they could have a second regional headquarters in Middle Eastern countries outside of the Gulf.
"Businesses do not like uncertainty and ambiguity, and there is plenty of that at the moment," said a Western executive, seeking anonymity because the preparations are private.
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