The long-awaited decision to require international companies to establish regional headquarters in Saudi Arabia has finally become a reality. For a long time, many have failed to understand the reasoning behind the lack of regional headquarters based in Saudi Arabia for international companies contracting and targeting the Saudi market, especially since Saudi Arabia has one of the largest economies in the world and a high purchasing power. There is no denying that the Kingdom has a clear vision for the future and is robustly working on accelerating and facilitating investment, especially in terms of legislation and regulations, and it even dedicated a ministry for this purpose.
By 2024, the year the decision is set to be implemented, with the continuation of all the legislative developments and ceaseless progress, Saudi Arabia will have established the perfect environment for foreign investors and a thriving economy in all aspects.
Saudi Arabia’s attractiveness stems from its massive and distinguished infrastructure, as well as its strategic location at the center between several continents, not to mention the Kingdom’s diverse economy across the regions with each region offering a different economic advantage. This is also in addition to the presence of the Two Holy Mosques which attract an abundance of visitors annually and throughout the year. The Kingdom is also favored for its highly educated and qualified national manpower. All of these economic and investment advantages are enough to make Saudi Arabia the optimal location for these international companies, so why should these companies operate outside the Kingdom, especially since they target the largest economy in the region?
The advantages of this step and the added value to the national economy are limitless. For instance, the presence of international companies in the Kingdom will make it an unparalleled investment and marketing destination which will attract even more companies. Massive financial returns can be achieved through various means. These companies will bring with them endless training and employment opportunities and increase the level of competitiveness within the business sector which will encourage business development. There is no telling how significantly this step will benefit the economy. These companies would not come to Saudi Arabia if there were no added opportunities for them especially in terms of achieving massive returns. The possibilities are endless, for instance, car companies, electrical appliances, building and construction, soft drinks, the technology and IT sector, pharmaceutical companies, and dozens of activities that prove that the Saudi market could offer boundless opportunities, especially since it is the largest in the region. These companies can take the Saudi market as their launching pad then spread into other international markets.
Beyond its optimal location, and the rapid developments taking place across the board, and particularly in terms of investment legislation and regulations, the Kingdom is on a flourishing reform journey guided by His Highness the Crown Prince Mohammed bin Salman. His Highness is leading the Kingdom's economy to a stage of major unprecedented transformation and reform, which will rival even the most developed countries through his plans for faster economic growth and economic diversification that will ensure a better future for future generations.
This article was originally published in, and translated from, the Saudi Arabian outlet al-Riyadh.
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