Goldman Sachs Receives Approval for Riyadh Regional Headquarters, Bloomberg Reports

Goldman Sachs Group Inc. (Goldman Sachs) has become the first Wall Street bank to comply with Saudi Arabia's ultimatum to establish a regional base in the country, reported Bloomberg.

According to people familiar with the matter, the investment bank has recently been granted a license by the Ministry of Investment of Saudi Arabia (MISA) to set up its headquarters in Riyadh. The exact number of employees moving to Saudi Arabia and the extent of Goldman's operations based in the kingdom are yet to be determined.

Under the new laws in Saudi Arabia announced in 2021, effective January 1, 2024, multinational companies intending to do business in Saudi Arabia with government entities are required to incorporate their regional headquarters in country, with a minimum of 15 employees.

Saudi Arabia has exceeded its target in attracting regional headquarters, with over 180 companies now established in the country. This surpasses the initial goal of securing 160 headquarters by the end of 2023.

Foreign companies that locate their regional headquarters in Saudi Arabia are eligible for tax incentives, including a 30-year exemption from corporate income tax. Additionally, foreign entities moving their regional headquarters to the kingdom can benefit from zero income tax, starting from the issuance of the headquarters license, as stated by the MISA.