RIYADH — Saudi Arabia intends to cease contracting with companies and commercial institutions that have regional headquarters outside the Kingdom, the Saudi Press Agency reported on Monday, citing an official source. According to the source, the move, which will come into effect on Jan. 1, 2024, will include agencies, institutions, and funds owned by the government. The source stated that the decision aims to incentivize the localization of businesses by foreign companies that deal with the Kingdom’s government or any of its agencies, institutions, and funds, in addition to creating more jobs, limit economic leakage, increase spending efficiency, and guarantee that the main goods and services purchased by the different government agencies are made in the Kingdom with appropriate local content. The source noted that this directive is made in accordance with the announcement of the strategic goals of the Kingdom’s capital, Riyadh 2030, during the Future Investment Initiative forum which was held recently, during which 24 international companies announced their intent to move their regional headquarters to Riyadh. The source stressed that such a decision will not affect an investor’s ability to enter the Saudi market, or to continue their business with the private sector, stating that regulations related to this decision shall be issued during 2021.