Political Economy AnalySynthesis No.

10
Name: Elisha Anne Bascon
Course & Section: IDS41
Subject: International Political Economy
Professor: Jumel G. Estrañero

“Saudi Arabia offers 30-year tax relief plan to lure regional corporate HQs”
A. News Tidbits
A 30-year tax exemption program for foreign corporations locating their regional
headquarters in the kingdom was announced by Saudi Arabia. This decision was made to attract
international investment and head count. In a statement written by the Saudi State Press Agency
that the program “aims to attract MNCs to set up their RHQ in Saudi Arabia and position the
Kingdom as the leading commercial, industrial and investment hub for the MENA region, by
offering a range of benefits and premium support services that complement the Kingdom’s
globally competitive value proposition,”. However, many foreign investors are skeptical of the
ability of Saudi Arabia.
B. Analysis
The plan of Saudi Arabia to have a 30-year tax exemption package for foreign companies
can have a different impact on their economy. Although it can help to attract some international
investments in their country, there are still things that make foreign investors think twice about
investing in their country. Saudi Arabia might still need to develop their country more in order to
accommodate these foreign investments that they aim to have.
C. Policy Recommendations
Economic instability is one thing that Saudi Arabia should consider before continuing
with this 30-year tax exemption because we all know that the tax that a country gets from foreign
investors is massive and it has a big impact on the country’s economy. It is also important that
the country is sure that it can fully accommodate these investments without putting the country’s
resources at risk.

Reference:

 Tutak, N. (2023, December 6). Saudi Arabia offers 30-year tax relief plan to lure regional
corporate HQs. CNBC. https://www.cnbc.com/2023/12/06/saudi-arabia-offers-30-year-
tax-relief-plan-to-lure-regional-corporate-hqs-.html