Amazon, Google, and Microsoft Among Companies Establishing Regional HQs in Riyadh

Global tech giants, including Amazon.com Inc., Alphabet Inc.'s Google, and Microsoft Corp., have obtained licenses to establish regional headquarters in Riyadh, Saudi Arabia, in response to the government's directive to award contracts exclusively to companies with a substantial presence in the country.

This move, which comes ahead of the January 1 deadline set by the Saudi government, is seen as a strategic response to the government's pressure.

Other companies, such as Airbus SE, Oracle Corp., and Pfizer Inc., have also received licenses to set up regional headquarters in Riyadh.

The Saudi government's initiative, announced in February 2021, aims to limit 'economic leakage' and keep government and citizen spending within the country.

This development is perceived as a bid to compete with Dubai, the Middle East's primary business hub.

The establishment of these regional headquarters in Riyadh is expected to have a significant impact on the operations of these companies in the region.

The Saudi government offers incentives for firms establishing headquarters in Riyadh, including tax breaks and hiring exemptions.

Matthew Martin and Fahad Abuljadayel / Bloomberg