< PreviousFINAL THOUGHTS 50 CEO MIDDLE EAST MAY 2024 hat does Ireland do?” It’s something I’ve been asked repeatedly in recent months with regards to how Ireland – an acknowledged global leader and trend setter in FDI attraction – goes about promot- ing itself as a location for multinationals to establish their European HQs. The context of these questions obviously relates to Saudi’s current Regional Headquarters (RHQ) programme, as clients seek out best practice case studies from other countries that have made themselves successful regional hubs, of which Ireland is undoubtedly, an exemplar. Google, HP, Apple, IBM, Facebook, LinkedIn, Shien, P zer, GSK… Ireland boasts an enviable list of approximately 1,000 MNCs who have made it their base for European operations. And whilst Ireland undoubtedly targets these entities and promotes itself as an optimal location for a corporate EU hub, it isn’t the be-all and end-all of its investment pitch. This is ultimately about identifying and attracting FDI that delivers high-quality jobs in the right sectors to help build a skilled, knowledge-based economy. Ireland isn’t obsessed about whether the investor company is already operating elsewhere in the EU, or the relative corporate hierarchy of its intended local entity. It looks at potential projects on their individual merits and this is where Saudi can learn a thing or two. Good FDI (now termed Impact FDI) comes in all shapes and sizes and, often, grows over time from initially small beginnings. With Saudi’s current laser focus on its RHQ programme, the risk is of missing out on such bene cial projects, both from overlook- ing their potential and long-term impact, but also from potentially alienating otherwise well-disposed, valuable and keen investors whose plans don’t fully meet the RHQ criteria. As Saudi Arabia’s economy continues to evolve at light speed with, for example, a burgeoning Special Economic Zone programme underway, and nationwide initiatives to attract investment to all corners of the kingdom, working with investors on broader projects will be essential - and let’s not forget that investor interest in Saudi is abundant. International companies are looking at the Middle East, and Saudi in particular, like never before so it’s vital that Saudi is able to capture, foster and deliver on this interest, regardless as to whether the intent is for a Regional HQ or not. Attracting regional HQs does tend to bring obvious bene ts such as job creation, knowledge transfer and infrastructure development, but the key is nding a balance between attracting HQs and fostering other FDI types that contribute to broader, sustainable economic development. Saudi Arabia has a great opportunity to pursue both angles and should look to make sure that it rolls out the gurative red carpet to investors of all shapes and sizes to fully capitalise on the legion opportunities that are coming its way. THERE’S MORE TO FDI THAN REGIONAL HEADQUARTERS BY JOE HEPWORTH - MIDDLE EAST DIRECTOR, OCO GLOBAL AND FOUNDER, BRITISH CENTRES FOR BUSINESS W We analyse the impact of Saudi Arabia’s current focus on other investment opportunities International companies are looking at the Middle East, and Saudi Arabia in particular, like never beforewww.ceo-middleeast.com The most important business people and CEOs talk to the most important magazineNext >