The second quarter of this year witnessed the registration of 600 new international companies in Saudi Arabia, and their lease of first-class offices in Riyadh, to coincide with the Kingdom’s orientations within the program to attract regional headquarters for international brands supervised by the Ministry of Investment and the Royal Commission for the Saudi Capital.
The partner and head of research at Knight Frank, Faisal Durrani, said that in contrast to the global trend of companies to reduce their office space by 20 to 30%, Riyadh is witnessing a high demand for offices, especially first-class, due to the program to attract multinational companies. The establishment of new government agencies and the endeavor of existing facilities to attract the best skills, according to the Asharq Al-Awsat newspaper.
In early February, the Kingdom attracted a group of 24 multinational companies to establish a regional headquarters in Riyadh, as the Kingdom seeks to transform its capital into a business center.
Among the companies that announced during the last edition of the Future Investment Initiative conference the establishment of regional headquarters are the American engineering group Bechtel, the Indian hotel company Oyo, and others.
Saudi Arabia had said in February that it would give foreign companies until the end of 2023 to set up headquarters in them, or else lose their contracts with the government, in a move aimed at attracting investment and providing job opportunities for Saudis.
In October, Saudi Arabia said it had issued licenses to 44 international companies to set up regional headquarters in the capital.
The deadline set by Saudi Arabia to move the headquarters comes within the framework of the efforts of Crown Prince Mohammed bin Salman to diversify the sources of the economy away from oil by shifting to new sectors.