Predictions
- New measure to end state contracts with international companies not headquartered in Saudi Arabia will have limited initial impact
- Longer-term impact of policy will depend on nature of firms’ operations, as private sector contracts are not covered by new measures
- Riyadh remains unlikely to succeed in encouraging mass relocation of companies, particularly from UAE, at least over coming years
Event
State media announced on 15 February that from 2024 the government will no longer sign contracts with international companies that do not have a regional headquarters in Saudi Arabia.
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