In an effort to diversity its oil economy along the same pattern as the United Arab Emirates, Saudi Arabia has been developing new economic sectors at home instead of investing abroad. Yet to become a regional economic hub, Riyadh would have to strip away some firms from Dubai, as most of the large international firms operating in the Gulf region are already headquartered in the UAE’s largest city.

Perceived as the destination of choice even for Saudi businesses headed abroad, Dubai is the most thriving financial and commercial center in the Gulf Cooperation Council (GCC) region. Yet a turning point in Saudi Arabia’s approach came when Crown Prince Mohammed bin Salman launched the futuristic city NEOM, which is set to cost an estimated $500 billion.

Being a focal part of the kingdom’s Vision 2030 economic program, this megaproject could become the showstopper of the Saudi economic makeover if it can compete as a business hub with Dubai. Consequently, Riyadh is trying to outstrip Dubai, though both cities could have adopted a complementary role.

Recently, a campaign was started by Riyadh as part of an initiative named Programme HQ, under which blue-chip companies and multinationals from Google to Siemens are being offered incentives to relocate their regional headquarters from Dubai to Riyadh. Ostensibly, this is to lure the senior leadership of top foreign companies to Riyadh to make it look like a larger market than Dubai, as well as to speed up foreign investment.