Boeing, a prominent US aerospace company, is set to establish its Middle East headquarters in Riyadh, Saudi Arabia.
Boeing Saudi President Asaad Aljomoai confirmed that the license application has been submitted and is working with the Saudi Ministry of Investment for approval, Bloomberg reported citing a senior company official.
The impact of this development on Boeing’s operations in other regional offices, including Dubai, Abu Dhabi, Kuwait, and one in Riyadh, remains uncertain.
The move comes after the January 1 deadline for global firms to set up regional bases in the kingdom or face losing out on lucrative government contracts.
Airbus, Oracle, and Pfizer have recently obtained licenses to establish regional centers in Saudi Arabia.
In 2021, Saudi Arabia announced plans to attract international companies’ regional headquarters to combat “economic leakage,” a term used to describe government spending that could benefit non-dominant companies.
The Saudi Arabian the Ministry of Finance and the Zakat, Tax and Customs Authority (ZATCA) announced a 30-year tax incentive package to encourage international companies to establish regional headquarters in the country, promoting regional growth.
The tax-relief package offers a zero-percent rate for corporate income tax and withholding tax related to approved regional headquarters activities.
