A total of 44 multinational companies (MNCs) today received licences to move their regional headquarters to Riyadh. The programme is expected to attract an investment of $18 billion by 2030.

 

The licenses were issued at the 5th edition of the Future Investment Initiative, attended by the world’s most influential leaders in business and government, said a Saudi Press Agency report.

 

Among the companies are prestigious multinationals in diverse sectors including energy, technology, F&B, consulting and construction. An initial batch of companies signed MoUs at the last edition of FII in January, with more companies signing up in the following months.

 

Through the Regional Headquarters Attraction Program of Multinational Companies, these companies now have direct access to the region’s largest economy, gaining financial and geographic opportunities whilst being part of one of the most exciting transformations happening in any city in the world, said the report.

 

The full scope of the programme makes it attractive for multinational companies and their current and prospective employees, as well as their families, to relocate to Saudi Arabia.

 

Since the launch earlier this year, regional headquarters have been legally defined as a unit of a multinational group duly established under the laws of Saudi Arabia for the purpose of supporting, managing, and providing strategic direction to its branches, subsidiaries and affiliates operating in the MENA region.

 

Minister of Investment Khalid Al-Falih, said: “I am delighted by the number of multinational companies that have chosen to relocate to Riyadh, demonstrating that our national capital is becoming an increasingly attractive place to do business and developing into an investment destination of choice. These companies have recognied the unique opportunities presented by Vision 2030 and are well positioned to reap the potential rewards. This comes two weeks after the launch of Saudi Arabia’s National Investment Strategy that will further unleash the opportunities on offer through a series of game-changing initiatives designed to improve the Kingdom’s business environment.”

 

Al-Falih added: “We have noted a strong response from investors in recent years, which is driving increases in FDI. As investment grows, we expect to see these investors expand their presence in the local market.”

 

The Regional Headquarters Attraction Program of Multinational Companies not only affords opportunities to multinational companies, but also provides significant direct and indirect benefits for Saudi nationals, residents, and businesses.

 

CEO of the Royal Commission for Riyadh City (RCRC) Fahd Al-Rasheed, said: “The RHQ companies will bring new expertise, research and development as well as innovation in a wide range of sectors, resulting in knowledge transfer in the medium to long term, and improvement in the local talent pool. By 2030, the programme will contribute $18 billion to the local economy and create around 30,000 new jobs.”

 

It is estimated that for every job attracted through the programme, 2.5 jobs are created indirectly in the base economy. The programme will also provide promising Saudi talent with opportunities to work in the multinational companies, enabling access to emerging sectors and creating a new generation of global Saudi MNC leaders.

 

Al-Rasheed said: “As an attractive city for MNCs, their employees, and their families to relocate, Riyadh is at the centre of the Regional Headquarters Attraction Program of Multinational Companies. We are undergoing a rapid transformation, as we look to double the city’s population and increase its economic footprint threefold by 2030. Four mega projects in the city are in progress to considerably advance quality-of-life rankings globally.”

 

Combined with the mega projects including King Salman Park, Green Riyadh, Riyadh Art and Sports Boulevard, initiatives such as the King Abdulaziz Project for Riyadh Public Transport, Qiddiya and Diriyah are creating an attractive and vibrant city filled with entertainment and recreational opportunities, said the report.