On 7 March 2023, the Council of Ministers formally approved the Initiative for attracting multinationals to set up regional headquarters in Saudi Arabia.  Earlier, the Regulations related to contracting by governmental entities with the foreign entities, which do not have regional headquarters in Saudi Arabia (Regulations) were approved by the Council of Ministers on 22 December 2022 under Decree No: 377 dated 03/06/1444 H. Starting January 2024, the Regulations related to governmental agencies contracting with foreign entities not having their regional headquarters in Saudi Arabia will become effective. As a result, foreign entities not having their regional headquarters will find it difficult to bid for public projects. It is expected that many multinationals will set up regional headquarters in Saudi