Superficial company nameplate HQs in Saudi Arabia will not fly: Saudi minister

Superficial company nameplate HQs in Saudi Arabia will not fly: Saudi minister

"A superficial nameplate saying 'this is the regional headquarters' will not fly,“ Saudi Arabia's Minister of Investment Khalid al-Falih told Arab News when asked about details of new regulations for foreign companies starting from 2024.

"We would want to see the companies having a major headquarters office with executive staff; their C-suite being here; operations in other countries reporting to it; and support functions, whether it's training, product development, consolidation of regional operations, all taking place within their regional headquarters. So, a superficial nameplate saying 'this is the regional headquarters' will not fly,“ Al-Falih told Arab News's Frank Kane during an appearance with the newspaper's Frankly Speaking show.

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Earlier last week, Saudi Arabia confirmed it will no longer sign contracts with foreign companies without a regional headquarters inside the Kingdom starting from 2024. The Kingdom's Finance Minister clarified at the time that the decision would only apply to contracts offered by the government and that companies without regional headquarters in Riyadh would still be able to bid for private sector contracts.

The policy, which comes into effect on Jan 1. 2024, is designed to encourage foreign firms to open