Saudi Arabia Attracts 571 Global Companies to Relocate Regional Headquarters

Saudi Arabia has solidified its position as a regional investment hub, with 571 international companies relocating their regional headquarters to the Kingdom, primarily in the industrial sector. This achievement reflects the Kingdom’s ongoing efforts to attract foreign direct investment (FDI) under the ambitious Vision 2030 initiative.
H.E. Eng. Khalid Al-Falih, Minister of Investment, shared this milestone during the launch of the Industrial Sector Benchmarking Incentives program. The event, attended by prominent local and international stakeholders, highlighted Saudi Arabia’s commitment to fostering a business-friendly environment. Al-Falih noted that the number of companies establishing regional bases in Riyadh alone had reached 540 by October last year, surpassing Vision 2030’s initial targets.
Maximizing the Economic Impact of Investments
H.E. Al-Falih underscored the Kingdom’s focus on enhancing the economic contributions of relocated regional headquarters. The government is implementing strategic initiatives aimed at boosting the industrial sector’s share of the GDP.
Notably, the industrial sector accounted for 30% of all FDI inflows, generating SAR 142 billion in revenue from manufacturing industries in the first nine months of the previous year. This highlights the sector’s critical role in driving economic growth.
Record Low FDI Leakage
Al-Falih pointed to a significant reduction in FDI leakage, with foreign investors increasingly reinvesting their earnings and capital in Saudi Arabia. This shift reflects the growing confidence in the Kingdom’s investment climate and the abundance of lucrative opportunities available.
New Incentives to Drive Industrial Growth
At the event, H.E. Bandar Al-Khorayef, Minister of Industry and Mineral Resources, announced a SAR 10 billion incentive package designed to attract large-scale investments in pivotal industrial sectors, including:
- Advanced Chemical Manufacturing
- Automotive Production and Components
- Machinery and Equipment Manufacturing
These incentives will be introduced in phases to address challenges such as high capital costs and limited value chains for medium-sized factories, ensuring a more competitive and robust industrial ecosystem.
Ambitious Investment Goals
Saudi Arabia is committed to achieving ambitious investment targets, with Vision 2030 setting a goal of attracting $100 billion in annual FDI by the end of the decade.
H.E. Al-Falih expressed confidence in the Kingdom’s trajectory, citing early indicators that demonstrate steady progress. He emphasized that the Kingdom’s comprehensive economic reforms and investor-friendly policies have positioned Saudi Arabia as a competitive global destination for investment.