Economic Jumpstart in Riyadh

Abdullah Al Alami - Feb 26, 2021

Saudi Arabia will stop signing contracts with foreign companies from 2024 unless their regional headquarters are based in the Kingdom. This is a legitimate right that any country can exercise.

The rule will include agencies, institutions and government-owned funds. However, it will not be applied to companies contracting with the private sector, but only to international companies that contract with government agencies and have a regional center in the region.

The decision achieves several positive results, including creating thousands of jobs for citizens, transferring expertise, and raising spending efficiency. Also, Goods and services, will provide an attractive environment for the investment sector.

This decision will result in an increase in economic gains and development of local markets. It will also help transfer technologies, increase cooperation with international entities with high economic standing, thus contributing to the diversification of the Saudi economy.

Saudi Arabia proudly achieved a 124% growth in total investments reaching 570 million riyals in 2020 compared to 255 million in 2018. Twenty-four international companies signed agreements to establish their regional offices in Riyadh, where 35,000 new jobs will be created for Saudi nationals.

We are talking here about a comprehensive national plan that will support the Saudi economy with about $17 billion in 2030 in the form of salaries, operating and capital expenditures.

Saudi Arabia is proceeding with its development projects, including increasing the number of investors in emerging companies, and raising funds and investments. Riyadh will continue to bridge financing gaps, and reduce bureaucracy in line with the country’s vision.

Crown Prince Mohammed bin Salman said last week that Saudi Arabia is aiming to make Riyadh one of the 10 largest city economies in the world. The number of local and international military industry companies operating in Saudi Arabia reached more than 70 with an estimated investment volume of $6.4 billion. In addition, the companies committed to make Riyadh their regional hub include PepsiCo, Deloitte, Boston Scientific, PwC, Bechtel, Schlumberger, Silicon Valley-based venture capital firm 500Startups, Tim Hortons Middle East, EMEA at CSG International, HICT, Greenbrier, and GCC at Katerra.

If this is not economic growth, I don’t know what is.

*Saudi writer