Riyadh, Saudi Arabia – Saudi Arabia’s Ministry of Commerce has announced the provision of online services for foreign companies looking to establish regional headquarters in the country after securing a license from the Ministry of Investment.
The services encompass issuing regional headquarters as a branch or as a new foreign company, in addition to issuing, amending, and renewing commercial registers, and reserving commercial names, Saudi Gazette reported.
The electronic services are accessible through the ministry’s digital platform at e.mc.gov.sa and the Saudi Business Center’s platform at business.sa.
Saudi Arabia stands firm on its requirement for foreign companies to establish regional headquarters in the kingdom or face exclusion from lucrative government contracts, with the earlier deadline set for January 1, 2024.
In a surprising move in February 2021, the Saudi government declared its intention to cease business dealings with international companies that did not relocate their regional headquarters to the country by 2024. This announcement took investors and expatriate workers by surprise, with many interpreting it as a direct challenge to Dubai, the commercial capital of the United Arab Emirates, known for hosting the highest concentration of Middle East regional headquarters.
This initiative has prompted several prominent global players to shift their headquarters to Riyadh. Companies such as German consultancy firm TUV Rheinland, Norwegian group Technal, global real estate firm JLL, and IHG Hotels & Resorts have already made the move.
In the latest developments, Boeing has joined the list of companies applying to establish its headquarters in Saudi Arabia in accordance with the government’s new regulations. Meanwhile, tech giants Amazon and Microsoft are expanding their offices in the kingdom, responding to the state’s pressure and aligning with the shifting business landscape in the region.