New York-based Goldman Sachs Group has reportedly obtained a license from the Kingdom’s Ministry of Investment to establish its regional headquarters in Saudi Arabia’s capital Riyadh, Bloomberg reported.
Goldman is the first Wall Street bank to adhere to the condition set by Saudi Arabia for foreign companies to obtain government contracts.
Under rules that took effect this year, companies must have a regional base in Saudi Arabia with at least 15 employees, including executives who supervise other countries.
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.
Firms that set up headquarters in the Kingdom enjoy substantial tax benefits, including a 30-year exemption for corporate income tax.
Saudi Arabia has successfully established over 180 regional headquarters, surpassing its initial goal of 160 by the end of 2023.
This initiative is part of Crown Prince Mohammed bin Salman’s broader plan to diversify the Saudi economy and reduce its dependence on oil by attracting foreign investments.
