In the first quarter of 2024, over 120 international firms received licenses to relocate their regional headquarters to Saudi Arabia. This marks a 477% year-on-year increase, highlighting the kingdom’s appeal for business.

Saudi Arabia’s Ministry of Investment issued 127 permits in these three months. This move aligns with Vision 2030, aiming to diversify the kingdom’s economy. New tax incentives offer a 30-year exemption on corporate income and withholding taxes, plus discounts and support services.

Recent laws require companies with state contracts to have regional headquarters in Saudi Arabia with at least 15 employees. The Ministry of Investment’s report noted that 445 investor visit visa applications were processed, facilitating overseas businesspeople to explore opportunities in Saudi Arabia.

The ministry closed 64 investment deals during the first quarter and issued 3,157 investment licenses, a 92.9% increase from last year. The construction sector saw the issuance of 864 licenses, while the manufacturing industry received 620 permits.

Additionally, 396 licenses were issued for vocational, educational, and technical activities, and 263 permits for information and communication technologies. Significant licenses were also granted in accommodation, food, wholesale and retail, and real estate sectors.

The department’s electronic platform provided over 58,000 services, a 29% increase from the previous year. In May, S&P Global reported that free economic zones and the regional headquarters program might boost foreign direct investment inflows into Saudi Arabia.

A Ministry spokesperson highlighted that real estate led in investment license growth with a 253.3% increase year-on-year. Vocational, educational, and technical activities, along with agriculture, forestry, and fishing, also saw notable growth of 141.5% and 129.4%, respectively.

To read more news from the MENA region click here.