Global companies to be rewarded for setting up in KSA: Officials

Global companies to be rewarded for setting up in KSA: Officials

"If a company refused to move their headquarters to Saudi Arabia it is absolutely their right and they will continue to have the freedom to work with the private sector in Saudi Arabia," Finance Minister Mohammed Al-Jadaan told Reuters on Monday. "But as long as it is related to the government contracts, they will have to have their regional headquarters here," he added. "Saudi Arabia has the largest economy and population in the region, while our share of regional headquarters is negligible, less than 5 percent currently. You can imagine what does this decision mean in terms of FDI (foreign direct investment), knowledge transfer and job creation." Investment Minister Khalid Al-Falih said incentives will be given to encourage companies to set up their regional base in the Kingdom, and those that make the move will be rewarded for their loyalty. "It's not natural for companies without their decision-making apparatus in the country to be getting the prime contracts that the government and government entities would be awarding," Al-Falih told Bloomberg. "It's a reward for those who choose to be here “¦ We believe that the combination of the infrastructure in place in Riyadh, the incentives that will be given, as