In February 2021, Saudi Arabia changed its rules for companies that want government contracts. They now have to set up offices in the country to be eligible. The goal is to boost the local economy, control government spending, and attract big international companies to operate in Saudi Arabia.
Big global tech companies like Amazon, Google, and Microsoft quickly followed this rule and got licenses to open offices in Riyadh, the capital of Saudi Arabia. This shows a significant increase in their presence in the country, supporting the broader economic plan of Crown Prince Mohammed bin Salman.
Requiring companies to have offices in the region aligns with Saudi Arabia’s plan to diversify its economy and reduce dependence on oil money. By making companies have a physical presence, the government ensures that it directly impacts local jobs and encourages the transfer of knowledge and technology.
This trend isn’t limited to tech companies; other big names like Airbus, Oracle, and Pfizer have also gotten licenses to open regional offices. This influx of major international companies signals an important moment in Saudi Arabia’s economic development, demonstrating its commitment to attracting different industries and creating a business-friendly environment.
Crown Prince Mohammed bin Salman’s strategy focuses on balancing limiting government spending and promoting economic growth by collaborating with well-known global companies. With these companies setting up regional offices, Saudi Arabia expects more job opportunities, technology transfer, and overall economic growth, in line with its ambitious Vision 2030 initiative.