RIYADH: Global banking firm Mizuho Financial Group has begun the process of establishing its regional headquarters in Riyadh by submitting an application to the Kingdom’s Ministry of Investment. The Tokyo-based company confirmed that it has submitted the application but declined further comment when approached by Arab News. This comes as the Kingdom strengthens its appeal to international companies, driven by the state’s Regional Headquarters Program. Several global firms, including EY, Goldman Sachs, and PayerMax, have recently relocated their Middle East bases to Saudi Arabia as part of this initiative. The Japanese group has been present in the country through its subsidiary, Mizuho Saudi Arabia Co., operating as an investment bank in Riyadh since 2009. Licensed and regulated by the Capital Market Authority, MSAR provides advisory and arranging services. The Kingdom’s effort to attract regional headquarters to Riyadh supports economic diversification goals, offering new tax incentives such as a 30-year exemption from corporate income tax and withholding tax on headquarters activities, alongside discounts and support services. According to the recently approved laws in Saudi Arabia, companies with state contracts must have a regional headquarters in the Kingdom with a minimum of 15 employees. More than 120 international firms received licenses to relocate their regional headquarters to Saudi Arabia during the first quarter of 2024, representing a 477 percent year-on-year increase. In its quarterly report, the Ministry of Investment revealed that the issuance of 127 permits in the first three months of the year underscores the Kingdom’s attractive and favorable business environment. Boeing Co. and Amazon.com Inc. are among more than 400 contracting, manufacturing and technology firms that have obtained the RHQ licenses. According to the report, 864 investment licenses were issued in the construction sector during the first three months of this year, followed by 620 permits in the manufacturing industry. The ministry issued 396 licenses for vocational, educational, and technical activities, while 263 permits were granted in the information and communication technologies sector. In February, a report by Saudi Arabia’s Small and Medium Enterprises General Authority highlighted that the Kingdom’s RHP has played a crucial role in accelerating the economic growth of Riyadh. In November 2023, Minister of Investment Khalid Al-Falih announced that Saudi Arabia has outperformed its target for attracting regional headquarters, with over 180 companies now established in the Kingdom.