Saudi Arabia’s multinational HQ deadline nears amid uncertainty for companies and Gulf competition

Al-Monitor Readers

Samuel Wendel

Senior Market Research Analyst, Al-Monitor

Dec. 15, 2023

As war dominates coverage of the Middle East, the region’s economic powerhouses are nearing an important milestone: Jan. 1, 2024 marks the deadline for multinationals to locate regional headquarters in Saudi Arabia if they want to access government contracts. Widely seen as a play to lure business and investment away from the UAE, the ultimatum underscores the growing rivalry between the ostensible Gulf allies at a moment when Saudi Arabia’s Vision 2030 economic development plan is fueling dealmaking. Saudi Arabia has already awarded HQ licenses to roughly 200 multinationals, but the rollout isn’t without issues. The kingdom moved slowly to clarify regulations around the initiative — only revealing details on tax breaks in December — and shows no signs of delaying the January deadline, leaving firms rushing to comply.