RIYADH: Saudi Arabia will stop signing contracts with foreign companies from 2024 unless their regional headquarters are based in the Kingdom.

The rule will include agencies, institutions and government-owned funds, a statement on Saudi Press Agency said.

The decision aims to incentivize foreign companies that deal with Saudi Arabia’s government to base themselves in the Kingdom.

It will also create jobs, increase spending efficiency, and guarantee that the main goods and services purchased by government agencies are from the Kingdom.

The move comes after Saudi Arabia last month announced during the Future Investment Initiative (FII) a strategic plan to make Riyadh one of the world’s top 10 city economies.

Some 24 international companies said they intended to move their regional headquarters to Riyadh.

The statement said the new decision would not affect any investor’s ability to enter the Saudi market, or continue their business with the private sector.

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