back to top

Boeing eyes Riyadh for Middle East hub amid Saudi mandate

Boeing’s decision to pursue establishing its regional base in Riyadh comes in response to Saudi Arabia’s recent mandate, compelling global corporations to set up regional headquarters within the kingdom’s borders by January 1. The directive, aimed at bolstering the nation’s economic ecosystem and prioritizing companies with substantial local presence, carries significant implications for entities seeking to secure lucrative government contracts.

While Boeing’s application signals proactive engagement with Saudi regulatory authorities, uncertainties linger regarding the enforcement mechanisms and potential repercussions for non-compliant firms. With the application deadline having passed, questions arise regarding the government’s stance on enforcing the new rules and its impact on companies like Boeing, particularly in their existing regional offices across Dubai, Abu Dhabi, and Kuwait.

Boeing Saudi President Asaad Aljomoai’s confirmation of the license application underscores the company’s strategic approach to navigate regulatory changes and maintain its foothold in the region’s aerospace industry. However, the ripple effects of this development extend beyond Boeing, with other global players like Airbus, Oracle, and Pfizer also racing to secure licenses for establishing regional centers in Saudi Arabia.

Saudi Arabia’s efforts to attract international companies align with its broader economic diversification agenda, aimed at curbing “economic leakage” and optimizing government spending to benefit local enterprises. The tax-relief incentives offered by the Ministry of Finance and the Zakat, Tax and Customs Authority (ZATCA), including a 30-year corporate tax exemption, underscore the kingdom’s commitment to fostering a conducive environment for regional business expansion.

As Boeing awaits approval for its Riyadh headquarters license, the aerospace industry anticipates further shifts in the regional market dynamics, with implications for both established players and emerging contenders.

Latest

Dubai’s Dh2 billion Trump Tower set to rise in Q2-2025

The highly anticipated Trump Tower in Dubai is gearing...

Google unveils chip that outpaces supercomputers by 10 septillion years

Google has announced a groundbreaking achievement in quantum computing with its new chip, "Willow," capable of solving problems in minutes that would take supercomputers an unimaginable 10 septillion years.

Airbus appoints Eid Al Qahtani to lead new regional headquarters in Saudi Arabia

Since the 1970s, Airbus has continuously expanded its footprint...

Gulf stock markets see gains, boosted by rising oil prices despite regional tensions

Gulf stock markets started Tuesday on a positive note,...
spot_img

Don't miss

National Life and General Insurance Company: Delivering value beyond insurance to customers

Oman’s largest insurer NLGIC is on course to become a regional multi-line, multi-country giant delivering value beyond insurance to the customers.

Economic growth in GCC to more than halve in 2023: World Bank report

However, the GCC growth will still outperform the wider Middle East and North Africa region, forecast to grow by 3% in 2023, down from 5.8% growth in 2022.

KitchenomiKs aims to transform on-demand food economy in Oman

KitchenomiKs cooks up dainty on-demand delicacies, tossing in emerging technologies, yummy multi-brand choices and seamless delivery.

AI central to UAE’s economic diversification, says COP28 President-Designate

AI will contribute to the UAE’s net zero strategic initiative by 2050 and help unlock advances in climate progress, says H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology.

Mrunal Khimji: ‘We owe it to the environment and future generations’

Meet the self-taught fashion designer who creates pieces that can be carried forward by generations. And be confident to repeat your clothes.
spot_imgspot_img

Airbus appoints Eid Al Qahtani to lead new regional headquarters in Saudi Arabia

Since the 1970s, Airbus has continuously expanded its footprint in Saudi Arabia, contributing significantly to the nation's aviation and aerospace sectors. Today, the company...

Boeing takes a heavy hit with $6.2 billion loss in Q3 amid strike and defense woes

Boeing reported a staggering quarterly loss of $6.2 billion, as a near six-week labor strike and costly setbacks in its defense and space division took a toll on the aviation giant.

Hafeet Rail secures key financing at Abu Dhabi’s Global Rail expo

The event has drawn over 1,000 attendees from around the globe, including 50 international delegations and 300 exhibitors representing more than 100 countries to...