Saudi Arabia is adding pressure on international firms to shift their Middle East hubs to the capital, constituting a direct problem to neighbouring Dubai and increasing rivalry.
Beginning on January 1, 2024, the Saudi authorities and state-sponsored foundations will stop signing contracts with global firms that base their Middle East head office in some other country, in agreement to a public statement from the Saudi Press Agency, ascribed to an authority supply.
The exchange is intended to limit “financial leakage” and improve employment creation, the unidentified authority referenced.
The decision is made to urge organizations to amplify their quality in Saudi Arabia’s capital of Riyadh, supporting a more extensive arrangement to differentiate the monetary arrangement of the world’s biggest unrefined exporter.
“It’s not pure for firms without their decision-making equipment within the nation to be getting the prime contracts that the federal government and authorities entities could be awarding,” Khalid Al-Falih, Saudi Arabia’s Minister of Investment, mentioned in a telephone interview.