Goldman Sachs gets licence for regional headquarters in Saudi Arabia: Reports

Wall Street titan Goldman Sachs has received a licence to set up its regional headquarters in Saudi Arabia’s Riyadh, according to a person familiar with the matter.

The move comes months after the kingdom’s cabinet approved a new set of rules under which companies without a regional headquarters in Saudi Arabia risk losing lucrative government contracts.

On the other hand, firms which set up a regional base in the kingdom would get tax incentives.

The move was first reported by Bloomberg News.

Goldman declined a request for comment from Reuters.

Saudi Arabia’s Crown Prince Mohammed bin Salman has been looking to attract foreign investment in the kingdom to reduce the economy’s reliance on oil.

Saudi Arabia’s regional office mandate

Saudi Arabia‘s deadline for foreign firms to establish their regional headquarters in the kingdom or lose out on hundreds of billions of dollars in government contracts went into effect earlier this year.

In November 2023, Saudi Investment Minister Khalid Al-Falih said that 180 companies had agreed to establish their regional headquarters in Riyadh.

Finance giants head to Riyadh

Global investment management firm Franklin Templeton opened an office in Riyadh, in March, after securing its ‘managing investments and operating funds’ and ‘advising’ licences from the kingdom’s Capital Market Authority.

The investment management firm said clients in Saudi Arabia will have a wide choice of investment solutions across asset classes, styles and geographies, including its considerable $256bn global alternatives platform.

Other finance firms have also been opening up offices or adding staff in Saudi Arabia including Moelis & Co., Lazard, JPMorgan Chase & Co., and Rothschild.