A Saudi man counts money at a jewellery shop in Riyadh, Saudi Arabia. — Reuters file picRIYADH, Feb 16 ― Saudi Arabia yesterday heaped pressure on foreign companies to move their Middle East headquarters to the kingdom, saying it will stop signing contracts with firms with hubs in other countries from 2024.
“The cessation will include agencies, institutions and funds owned by the government and will take effect January 1, 2024.” Many multinationals doing business in the conservative kingdom prefer to have their regional headquarters in the neighbouring UAE and other glitzy Gulf capitals that offer a relatively more liberal lifestyle and permit alcohol.
But the decision will pile pressure on private sector companies heavily dependent on lucrative Saudi government contracts. The announcement comes as the petro-state battles high unemployment and a coronavirus-triggered downturn.