Riyadh, October 27 (BNA) Today, 44 multinational companies obtained licenses to move their regional headquarters to Riyadh.
The licenses were issued in the fifth edition of the Future Investment Initiative, which was attended by the world’s most influential leaders in business and government. Among the companies are reputable multinationals in diverse sectors including technology, food and beverage, consulting and construction.
The Saudi Press Agency (SPA) reported that an initial group of companies signed memoranda of understanding in the latest version of the Fisheries Industries Initiative in January, with more companies registering in the following months.
Through a program to attract regional headquarters to multinational corporations, these companies now have direct access to the region’s largest economy, gaining financial and geographic opportunities while being part of the most exciting transformation taking place in any city in the world.
The full scope of the program makes it attractive to multinational companies and their current and potential employees, as well as their families, to relocate to Saudi Arabia.
Since its launch earlier this year, the Regional Headquarters has been legally defined as a unit of a multinational group duly established under the laws of the Kingdom of Saudi Arabia for the purpose of supporting, managing and providing strategic direction to its branches, subsidiaries and affiliates operating in the Middle East region.
Investment Minister Khalid Al-Falih said: “I am pleased with the number of multinational companies that have chosen to relocate to Riyadh, which shows that our national capital is becoming an increasingly attractive place to do business and develop into a preferred investment destination.”
These companies have recognized the unique opportunities that Vision 2030 offers and are well positioned to reap the potential rewards. This comes two weeks after the launch of Saudi Arabia’s National Investment Strategy which will unleash the opportunities presented through a series of game-changing initiatives designed to improve the business environment in the Kingdom.
We have noticed a strong response from investors in recent years, which has led to an increase in foreign direct investment. As investment grows, we expect to see these investors expand their presence in the local market.”
The Regional Headquarters Attraction Program for Multinational Corporations not only provides opportunities for multinational companies, but also provides significant direct and indirect benefits to Saudi citizens, residents and businesses.
“RHQ companies will bring new expertise, research and development as well as innovation in a wide range of sectors, leading to knowledge transfer in the medium to long term, and improving the local talent pool,” Fahd Al-Rasheed, CEO of the Royal Commission in Riyadh City (RCRC) said.
“By 2030, the program will contribute $18 billion to the local economy and create about 30,000 new jobs.”
It is estimated that for every job attracted through the program, 2.5 jobs are created indirectly in the primary economy. The program will also provide promising Saudi talents with opportunities to work in multinational companies, giving access to emerging sectors and creating a new generation of global Saudi multinational leaders.
“As an attractive city for multinational companies and their employees and their families to relocate, Riyadh occupies the center of the program to attract the regional headquarters of multinational companies,” Al-Rasheed said.
“We are undergoing a rapid transformation, as we look to double the city’s population and triple its economic footprint by 2030. Four mega projects in the city are in progress to significantly improve quality of life rankings globally.”
Along with mega projects including King Salman Park, Green Riyadh, Riyadh Arts and Sports Boulevard, initiatives such as King Abdulaziz Public Transport Project in Riyadh, Qiddiya and Diriyah create an attractive and vibrant city full of recreational and leisure opportunities.
Sustainability is an integral part of the transformation that the Kingdom is undergoing, with investments in Riyadh’s sustainability strategy amounting to $92 billion, and $40 billion of this amount providing green investment opportunities to the private sector.
Moreover, Riyadh is on a journey to provide best-in-class aviation infrastructure and regulations to enhance international connectivity and increase flights to key markets related to multinational companies committed to establishing their headquarters in Riyadh. Overall, this transformation and rapid growth is expected to increase demand for services and create jobs in areas such as healthcare, education and logistics, and accelerate the development of new sectors such as biotechnology, benefiting local communities and businesses.
Education is one of the most important motives in attracting talented people and their families from abroad. Therefore, various educational reforms have been approved by the Cabinet under the program to attract regional headquarters for multinational companies, enabling international schools to work with their staff.
Two international schools, Kings College Riyadh and SEK International School Riyadh, began operations in September 2021 with over 200 students already enrolled under the International Schools Attractive Program, a collaboration between the Ministry of Investment, the Ministry of Education and the RCRC.
Minister of Education Dr. said. Hamad bin Mohammed Al Sheikh said.
The International Schools Attraction Program provides an exceptional added value for the exchange of knowledge and experience of our distinguished national talents in the education sector and specialized international cadres.
“These schools are flexible enough to ensure a stimulating learning environment, achieve outstanding academic results, and provide a different and enhanced learning journey for students.”
In summarizing this historic program, Fahd added that they are determined to create an environment that opens job opportunities, expands the economic base, and creates job opportunities for Saudis.
“This is exactly what this program achieves by facilitating the entry of multinational companies into the Saudi market to help them take advantage of regional market opportunities in the region’s largest economy,” he said.