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Saudi Investment Minister Khalid Al-Falih identified 5 main benefits of the decision to limit government agency contracts to international companies that have a regional center in the Kingdom.
Al-Falih said in a tweet on Twitter that the decision announced yesterday Monday will positively translate into the creation of thousands of jobs for citizens, the transfer of expertise, the localization of knowledge, and will also contribute to the development of local content. and attract more investment. in the Kingdom.
The decision to limit government agency contracts to international companies that have a regional center in the Kingdom, which was announced today, will positively result in the creation of thousands of jobs for citizens, the transfer of expertise and localization of knowledge, as it will. contribute to the development of local content and attract more investment in the Kingdom.
– Khaled Al-Falih | Khalid Al Falih (@Khalid_AlFalih) February 15, 2021
Saudi Arabia on Monday decided to end government agency contracts with any foreign trading company or establishment with regional headquarters in the region outside of the Kingdom, starting in 2024.
An official Saudi government source said investments by international companies that are not tied to government contracts will not be affected by the decision.
The source said the Kingdom’s government is determined to stop contracting with any foreign trading company or establishment with regional headquarters in the region in a country other than the Kingdom, from early January 2024, and the decision includes government agencies, institutions and funds or one of its agencies.
The source pointed out that this decision is an incentive to adapt the work of foreign companies and institutions that deal with the government of the Kingdom, authorities, institutions and funds affiliated with the government or one of its devices, and in a effort to create jobs. , reduce economic leakage, increase spending efficiency, and ensure that key products and services purchased by various government agencies are implemented on Kingdom lands with appropriate local content.
And he considered that this trend is in line with the announcement of the strategic objectives of the capital of the Kingdom “Riyad 2030” at the Forum for the Future Investment Initiative which was held recently, during which the intention of 24 international companies was announced to move their regional headquarters to Riyadh.
The source stressed that this will not affect the ability of any investor to enter the Saudi economy or continue to deal with the private sector, and that the relevant checks will be issued in 2021.
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