KSA: "Programme HQ", to lure MNCs in the Gulf

Posted on    14 January 2021
KSA:

 "Programme HQ" as dubbed by authorities in the Kingdom of Saudi Arabia (KSA)  is a campaign which advocates luring major blue-chip companies from the likes of Google to Siemens to set up their regional headquarters in Saudi Arabia in return for ample incentives provided by such authorities as reported by Financial Times.

While authorities are open to suggestions by the Companies to facilitate their relocation, they have generalised incentives such as a 50-year tax holiday, a waiver to the quota system in Saudi nationals' employment, and an assurance of aid amidst future regulation changes.

This move unquestionably is set to challenge UAE's leadership in this sector as currently most MNCs Gulf headquarters are based in Dubai. This means a relocation to Riyadh as per the plans pitched by consultants to government and executives. Companies on the immediate radar of this initiative that aims to establish SA's King Abdullah Financial District as a business hub in the international market attracting substantial foreign investment are generally from the Oil, IT and Finance sectors.

Primarily, this is a move in the extension of Prince Mohammed's "Vision 2030". To cement their plan, authorities hope to sign MOU's with willing companies who have provisionally decided on the relocation ahead of the Annual Investor Conference scheduled on January 27. 

Executives at the briefing showcased how Saudi Arabia had already approached companies. Their main concerns were the relocation of senior staff members from Dubai who would have to be supported by equivalent lifestyle and infrastructure, which seems to be lacking presently in the Kingdom. Despite these concerns, companies are affirming to shift their business units if not their regional quarters.  

While Saudi Aramco has cut a deal with Google cloud to receive its cloud computing services infrastructure and Saudi Telecom has publicised its $500m deal with Alibaba Cloud for similar services, they are expected to open offices in the Kingdom.

Source: Financial Times



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