Saudi Ultimatum to Move In or Lose Out Unsettles Global Firms
Bloomberg 2/18/2021 Zainab Fattah and Lin Noueihed
(Bloomberg) Saudi Arabia’s ultimatum for global companies to move their regional hubs to Riyadh by 2024 or lose business is the kind of decision making that has made some wary of investing there.
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The millions of dollars in costs, sudden policy changes and arbitrary legal rulings mean companies will need to weigh the risks of moving there with the potential rewards Crown Prince Mohammed bin Salman’s economic overhaul promises.
Saudi Arabia said this week state contracts would go only to companies with regional hubs in the country to stop economic “leakage.” It gave few details, fueling the kind of uncertainty many regional executives say complicate their dealings with the world’s top oil exporter.
Saudi Arabia Adds Pressure on Global Firms to Move to Riyadh Bloomberg 2/16/2021 Matthew Martin, Vivian Nereim and Zainab Fattah
(Bloomberg) Saudi Arabia is increasing pressure on international firms to shift their Middle East hubs to the kingdom, posing a direct challenge to neighboring Dubai as a regional rivalry heats up.
From the start of 2024, the Saudi government and state-backed institutions will stop signing contracts with foreign companies that base their Middle East headquarters in any other country in the region, according to a statement from the Saudi Press Agency, attributed to an official source. The move is intended to limit “economic leakage” and boost job creation, the unidentified official said.