São Paulo – As of 2024, the Saudi government will no longer contract with foreign companies unless they have their regional headquarters in Saudi Arabia, the Saudi Press Agency (SPA) quoted an undisclosed source as saying.
This will include all government-owned agencies, institutions and funds, effective January 1, 2024. According to the SPA, the move is intended to encourage the localization of foreign enterprises that do business with the Saudi government or any of its arms, as well as to create jobs, increase spending efficiency and “guarantee that the main goods and services purchased by the different government agencies are made in the Kingdom with appropriate local content,” SPA reported.
The source said this directive comes in connection with the Saudi capital’s Riyadh 2030 plan, made public during the recently held Future Investment Initiative forum, which saw 24 foreign enterprises announce their intent to move their regional headquarters to Riyadh.
The directive is also in line with the Saudi Arabian crown prince Mohammed bin Salman’s Vision 2030 plan to create jobs and diversify the economy away from oil.
SPA reported that the administration’s move “will not affect any investor’s ability to enter the Saudi market, or to continue their business with the private sector, stating that regulations related to this decision shall be issued during 2021.”
Translated by Gabriel Pomerancblum
