The decision, to take effect on January 1, 2024, aims to solicit foreign investment, increase efficiency of state spending and boost local employment, according to an anonymous official quoted by the state-run Saudi Press Agency. The rule applies to foreign companies that deal with government agencies, institutions and funds. The step could put Saudi Arabia at odds with Dubai, considered the region’s commercial and tourism hub. The decision “will not affect any investor’s ability to enter the Saudi market,” the report added, noting that further measures will emerge throughout the year. The wealthy kingdom has historically relied on vast oil reserves and state spending to power the country and subsidize the lives of most Saudi citizens on the government payroll.

Source: Egypt Independent February 15, 2021 20:03 UTC