The Saudi cabinet approves contract rules for companies not based there
The ultimatum is part of Crown Prince Mohammed bin Salman's efforts to transition the economy away from oil and attract foreign companies to the kingdom. (Photo: Reuters)
The Saudi Cabinet on Tuesday announced its approval of contract rules for companies that do not have regional headquarters in the Kingdom, Saudi state news agency SPA reported.
The decision comes just days before Saudi Arabia's January 2024 deadline for companies to move their regional headquarters to the kingdom or risk losing hundreds of billions of dollars in lucrative government contracts.
The statement at the cabinet meeting did not make the regulations public. It is not clear whether they will allow the government to award contracts to foreign companies that do not have a regional headquarters in Saudi Arabia.
Saudi officials did not immediately respond to requests for comment outside regular business hours.
Finance Minister Mohammed Al Jadaan told Reuters in October that the deadline for a move would be maintained even as foreign companies struggled to meet the deadline amid unclear regulations.
The ultimatum, part of Crown Prince Mohammed bin Salman's efforts to transition the economy away from oil and lure foreign companies to the kingdom, puts Riyadh in competition with its neighbor the United Arab Emirates, the region's traditional financial center.
First print: December 26, 2023 | 11:37 PM IST