Saudi Arabia’s cabinet grants approval for new contracting regulations targeting companies without regional headquarters in the Kingdom ahead of a crucial deadline.

Countdown to Relocation: January 2024 Deadline:

As Saudi Arabia pushes for economic diversification, companies face a looming deadline of January 2024 to relocate their regional headquarters to the Kingdom, with significant consequences for non-compliance.

While the specifics of the approved regulations remain undisclosed, the decision raises questions about whether the government can engage foreign firms lacking regional headquarters in Saudi Arabia.

Saudi officials have not clarified the approved regulations, and requests for comments outside regular business hours have gone unanswered.

Crown Prince’s Economic Vision:

The request aligns with Crown Prince Mohammed bin Salman’s broader vision to shift the Saudi economy from oil dependency, encouraging foreign investment and business engagement within the Kingdom.

Companies failing to meet the relocation deadline risk losing access to lucrative government contracts, potentially amounting to hundreds of billions of dollars, emphasizing the high stakes involved.