Saudi to halt deals with firms with no HQ in Kingdom

Saudi Arabia intends to cease contracting with companies and commercial institutions whose regional headquarters are not located in the Kingdom.

The cessation will include agencies, institutions and funds owned by the government and will take effect on 1st January, 2024.

The decision aims to incentivise the localisation of businesses by foreign companies dealing with the Kingdom’s government, and guarantee that the main goods and services purchased by the different government agencies are made in the Kingdom with appropriate local content.

This directive is made in accordance with the strategic goals of Riyadh 2030. Regulations related to this decision shall be issued during 2021.

Comments