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Global Tech Giants Boost Saudi Presence Due To State Pressure

Firms including Amazon, Google, and Microsoft face government legislation designed to curb economic leakage.

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12 months ago

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global tech giants boost saudi presence due to state pressure
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Global technology heavyweights, such as Amazon, Google, and Microsoft, are actively expanding their presence in Saudi Arabia in response to the government’s intention to withhold contracts from companies lacking regional headquarters within the country.

The move is part of a greater economic agenda that involves curbing the substantial amount of state and citizen spending that exits the country annually. As part of that plan, the government seeks to cease awarding contracts to international firms that merely shuttle executives in and out of the Kingdom.

Saudi Arabia introduced the new regulations in February 2021, citing a desire to minimize “economic leakage”. As per government records, all three of the US corporations mentioned above have now obtained licenses to establish regional headquarters in Riyadh in adherence to the January 1st deadline.

Towards the end of 2023, there was a noticeable surge in activity among large corporations aiming to establish local headquarters. Notable among the firms that have already received licenses are Airbus, Oracle, and Pfizer.

In further efforts to bolster the economy and attract international investments, Crown Prince Mohammed bin Salman has also eased restrictions on gender mixing, women driving, and public entertainment. Nevertheless, limited lifestyle options and policies such as the continued alcohol ban have deterred many foreign executives from residing in the country.

Also Read: Oman Plans To Have 22,000 EVs On Its Roads By 2030

However, Saudi Arabia’s status as the largest economy in the region, along with plans to invest trillions of dollars to become a tourism and commercial hub, has prompted numerous multinational corporations to reevaluate their Middle East operations.

Recent Saudi economic policies are widely seen as an attempt to compete with Dubai, the Middle East’s foremost business hub, which has long attracted multinational firms due to its lifestyle, low taxation, and connectivity. So far, more than 200 firms have already received headquarters licenses, including Bechtel, PwC, and PepsiCo, all of whom have announced Riyadh as their regional headquarters.

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UAE Prepares To Launch Two Satellites: Thuraya-2 And MBZ-SAT

HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum chaired the first meeting of the Supreme Space Council yesterday.

Published

5 days ago

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December 17, 2024

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uae prepares to launch two satellites thuraya-2 and mbz-sat

HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Deputy Prime Minister of the UAE, chaired the first meeting of the Supreme Space Council in Dubai on December 16, 2024. The session highlighted the UAE’s ambitious space plans and took stock of the sector’s economic progress.

The council emphasized the growing role of private companies in advancing space technologies, noting that their contributions are now equal to that of the public sector. Members also praised initiatives like the Space Economic Zones Programme, which are designed to fuel innovation and investment in the space industry.

Discussing the UAE’s space journey, HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum remarked, “The national space sector continues to grow and advance, and we take immense pride in the remarkable achievements we have accomplished over the years”.

Sheikh Hamdan also received updates on two upcoming satellite projects: Thuraya-2 and MBZ-SAT. Thuraya-2, developed by Space42, is slated for launch this December. Meanwhile, the MBZ-SAT, created by the Mohammed Bin Rashid Space Centre (MBRSC), will soon follow. MBRSC, a major driver of the UAE National Space Programme, continues to lead the nation’s space-related developments.

Space42 took the opportunity to showcase its advancements, including ongoing collaborations between public and private entities. The company also outlined strategies to promote innovation, boost revenue streams, and create new opportunities for growth in the sector.

Also Read: IBM Opens New Doha Office To Support Qatar’s Digital Growth

The UAE’s current projects build on a growing legacy of space exploration. Back in 2020, the nation made headlines with its Mars mission, successfully sending a probe into the planet’s orbit in 2021. This mission, which is now in its second phase as of June 2024, has been collecting critical data to develop a comprehensive diurnal image of Mars.

The UAE also ventured into lunar exploration with an unmanned mission aimed at studying untouched regions of the Moon’s surface. While the probe ultimately crashed during its landing attempt after communication was lost seconds before touchdown, the effort represented a significant step in the country’s exploration ambitions.

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