Saudi Arabia has announced some companies will be able to operate in the kingdom without having a headquarters in the country.
Companies with foreign operations not exceeding 1 million Saudi riyals ($266,000) can operate in the kingdom without local headquarters, it was reported on Sunday.
Firms competing for government contracts without any other bidders are also exempt from the rules.
The decision follows rules introduced in 2021 which require foreign firms to set up regional headquarters in the country by the end of this year or risk losing out on government contracts.
Companies will not be able to sign contracts with anybody, institution or fund affiliated to the government or its agencies without a headquarter in the kingdom, according to the restrictions.
Government agencies working with foreign companies that do not have a Saudi headquarter will have to submit a letter of explanation within 30 days of signing a contract.
Saudi officials hope for 480 companies to establish headquarters in the kingdom by 2030 as it looks to generate new industries and diversify the oil-rich economy.