184 Foreign Companies Shift Regional Headquarters to Saudi Arabia in First Half of 2024

In the first half of 2024, 184 foreign companies relocated their regional headquarters to Saudi Arabia following the acquisition of investment licences, as reported by the Ministry of Investment of Saudi Arabia (MISA).

This surge is attributed to the Kingdom's relentless efforts to enhance the investment environment and improve the investor experience.

During the second quarter of 2024, 57 companies secured investment licences to relocate their regional headquarters to Saudi Arabia, marking an 84 per cent increase compared to the same period in 2023.

This follows 127 licences issued in the first quarter, bringing the total to 184 licences for the first half of the year, according to the “Saudi Economy and Investment Monitor” report for the second quarter of 2024.

Additionally, MISA processed 4,709 applications for ‘Investor Visit’ visas, which facilitate visits for investors from outside the Kingdom to explore opportunities. The ministry also addressed 38 investor challenges, including legislative and procedural issues.

The report highlights a 49.6 per cent increase in issued investment licences, reaching 2,728 compared to 1,824 in the same period last year. This figure excludes licences granted under the campaign to correct the status of violators of the Anti-Commercial Cover-Up Law, as reported by Asharq Al-Awsat newspaper.

Investment licences were predominantly issued in the sectors of construction, manufacturing, professional, educational and technical activities, information and communications, accommodation and food services and wholesale and retail trade.

Mining and quarrying saw the most significant growth in licence issuance during the second quarter, with a 209.1 per cent increase compared to the previous year. This was followed by other services and activities, with growth rates of 110.5 per cent and 96.3 per cent, respectively.

The report also outlines key initiatives to support investment in the second quarter of 2024. Notably, the Ministry of Economy and Planning launched the “Sustainability Pioneers” programme in Riyadh, aimed at advancing sustainability across the country by fostering cooperation between leading companies in vital sectors.

This initiative is integral to the Kingdom’s comprehensive strategy for addressing environmental challenges and accelerating its transition to a green economy in line with Saudi Vision 2030.

The Sustainability Pioneers programme underscores the importance of public-private sector collaboration in achieving global sustainability and environmental protection goals.

Additionally, the Fashion Commission, in collaboration with the “Mohammed bin Salman Non-Profit City” (Misk City), launched “The Lab” initiative in Riyadh.

This first-of-its-kind studio in the Kingdom aims to advance the fashion industry by offering designers training and resources to streamline the manufacturing process, enhance investment opportunities, and ensure industry prosperity.
The report also highlights the recent establishment of the Saudi-British Strategic Partnership Council, designed to strengthen mutual economic partnerships in 13 key sectors.

This forum facilitates the exchange of expertise and review of best practices in priority areas, aiming to boost trade exchange and enhance collaboration between the two countries.

In November 2024, the Saudi Investment Marketing Authority will host the 28th World Investment Conference in Riyadh, in partnership with the World Association of Investment Promotion Agencies, reflecting the Kingdom’s commitment to leading digital transformation, sustainability, and global cooperation.

The report touches on advancements in the education sector, a key component of the country's strategy for sustainable development.

Notable achievements include attracting foreign investments in 13 private-public education companies, allowing distinguished international universities to establish branches in the Kingdom, and encouraging investment in university education.

The report also notes the forthcoming opening of additional international universities. Among the achievements, four Saudi universities have been recognised for their high number of patents, enhancing the Kingdom’s global competitiveness.

Furthermore, eight international schools have recently been established in Riyadh, including Beach Hall, King’s College, One World International, Downe House, Aldenham, SEK, Packwood and RGS international schools.

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