Saudi Finance Minister Mohammed Al-Jadaan announced today that the Kingdom will enforce a deadline for foreign companies to transfer their regional offices to the capital, Riyadh, before January. Otherwise, they will lose their contracts with the government. Al-Jadaan confirmed when asked if the January deadline was still in place that it is not a new deadline and will be enforced.
Foreign companies have been using neighboring United Arab Emirates as a launching point for their regional operations, including in Saudi Arabia, for years. Some companies have expressed concerns regarding the regulatory framework, including taxes, and there is speculation that the government may extend the deadline to accommodate investor uncertainties. Al-Jadaan stated that a tax framework has been agreed upon but did not elaborate on the details.
During the same interview held on the sidelines of the Future Investment Initiative, an annual investment conference in the Kingdom, Al-Jadaan also commented on an invitation to join the BRICS bloc, which includes Brazil, Russia, India, China, and South Africa. He said that Saudi Arabia will announce whether it will accept the invitation and when, in case of acceptance. He added that he has not discussed joining BRICS in any political context, emphasizing that the matter is more economic in nature. Several Middle Eastern countries have recently received invitations to join the bloc amid increasing tensions between the United States and China.
