https://arab.news/cvts9
- 184 total permits were issued in the first half of the year
- Perks include 30-year exemption on corporate income tax, withholding tax related to headquarters activities, discounts and support services
RIYADH: More than 57 international firms received licenses to relocate their regional headquarters to Saudi Arabia during the second quarter of this year, representing an 84 percent year-on-year increase.
In its quarterly report, the Kingdom’s Ministry of Investment revealed that the 184 total permits issued in the first half of the year underscored the country’s attractive and favorable business environment.
The drive to attract regional bases to Saudi Arabia plays into the Vision 2030 initiative to diversify the economy and includes new tax incentives for multinational companies that secure a relocation license.
These perks include a 30-year exemption on corporate income tax and withholding tax related to headquarters activities, alongside discounts and support services.
According to recently approved laws, companies with state contracts must have a regional headquarters in the Kingdom with a minimum of 15 employees.
Construction, manufacturing, professional, scientific and technical activities, information and communication, accommodation and food services, and wholesale and retail trade represented 80.1 percent of the total investment licenses issued during this period.
The distribution highlighted the Kingdom’s strategic focus on diversifying its economy through targeted sectoral growth.
The mining and quarrying sector recorded the most significant growth, with a 209.1 percent year-on-year increase in investment licenses, reflecting its expanding importance within the country’s economic strategy.
The Ministry of Investment’s report said that Saudi Arabia processed 4,709 applications for investor visit visas during the second quarter of the year, allowing overseas businesspeople to visit the Kingdom and explore opportunities.
The total number of investment licenses issued during the same period reached 2,728, up 49.6 percent, compared to 1,824 in the same quarter of the previous year.
In the second quarter of 2024, Saudi Arabia’s investment landscape was marked by a high concentration of licenses across several key sectors.
Additional sectors also showed notable growth, with services and wholesale and retail trade seeing year-on-year increases of 110.5 percent and 96.3 percent, respectively.
Egypt led in the number of investment licenses issued by the ministry with 789 licenses, followed by India with 264, Yemen with 251, Pakistan with 168, and Syria with 141, pointing to the Kingdom’s increasing appeal as a destination for global investors.