Q1 2024: 127 Companies Establish Regional Headquarters in Saudi Arabia In the first quarter of 2024, 127 international companies relocated their regional headquarters to Saudi Arabia, marking a staggering 477% increase compared to the same period last year.
This rapid growth is primarily attributed to the new tax incentives introduced by the Saudi government to attract multinational companies to set up their regional headquarters in the country. These incentives include comprehensive support services (relocation, concierge, professional consulting, etc.), and exemptions from withholding tax and corporate income tax related to headquarters activities for 30 years. According to Saudi Arabia's latest regulations, companies must establish their regional headquarters in Saudi Arabia and employ no fewer than 15 staff members to qualify for these preferential policies.
Saudi Arabia topped the rankings in venture capital investment, government confidence index, and consumer investment confidence index for both 2023 and 2024. It also ranked second in the consumer confidence index and global cybersecurity competitiveness index, securing leading positions in various international metrics. This makes Saudi Arabia a hotspot for global investment and a blue ocean for corporate exports. These achievements are closely linked to Crown Prince Mohammed bin Salman's "Vision 2030." To achieve economic diversification and reduce excessive reliance on the oil industry, the Saudi government has implemented numerous favorable policies to attract foreign investment and promote the development of aviation, green energy, automotive, tourism, gaming, and other sectors. The government welcomes international companies to establish a presence in Saudi Arabia, aiming to make the country the core state of the Arab and Islamic world, a hub connecting Asia, Africa, and Europe, and a global investment powerhouse.
In the first quarter of 2024, the Saudi Ministry of Investment issued a total of 3,157 investment licenses, reflecting a 93% increase compared to the same period last year. These licenses were predominantly concentrated in manufacturing, technology, information and communication, construction activities, and automotive production and maintenance. Compared to the same period last year, the growth rate of licenses issued in Q1 2024 for real estate activities was 253.3%, and for professional and educational activities, it was 141.5%. In the fourth quarter of 2023, foreign direct investment inflows into Saudi Arabia increased by 32.2% year-on-year. Saudi Arabia's transformation is progressing steadily, and the country's attractiveness as an investment destination continues to rise post-pandemic.