As a nation moving to a productivity-based economy in its post-oil era, Saudi Arabia is in the process of a self-driven transition into a new era of social and economic change, market improvement and sector growth. With plans in place for socioeconomic development according to the initiatives National Transformation Program 2020 and Vision 2030, Saudi Arabia is focused on Saudization, building its own assets, and basing its market on productivity.
In this changing economic and social climate, U.S. companies involved in Saudi industries like defense may be looking to further their involvement, expand their reach and improve their business connections. If your American defense company is looking to expand and develop better business relations in your Saudi Arabian market, you need expert insight into its unique customs, context and requirements to know where and how to play the game in this unique and fluctuating market.
When your business dealings require you to become involved with the Saudi Arabia economic offset program, The Quincy Group is here to keep your interests in line while posing you as a profitable choice for further potential business partners.
Why Business Advising Helps You With Saudi Arabian Offset Requirements
In a complex, often opaque market it can be difficult to understand and execute requirements to help your company succeed in foreign dealings, even when you've already been involved in the business for some time. That's why as an experienced, highly knowledgeable advisory firm, The Quincy Group offers you a competitive edge in the market.
With its widespread focus on enhanced productivity, privatization and nationwide improvement, Saudi Arabia is open to furthering its involvement with investors and business partners, but the nation also wants to protect its own interests, which is why you must comply with offset obligations in Saudi Arabia. The Quincy Group understands these requirements and the context they fit into, and we'll help you enter into a mutually beneficial business agreement by:
- Offering you the backing of the reputation we've established over 50 years of building relationships with Saudi business leaders and decision-makers.
- Providing expertise and insight into the culture, customs, communication style and context in which your business obligations originate.
- Advising you on developing programs and contracts attractive to both you and your Saudi business connections.
- Making sure your business plans and priorities align with Saudi Arabia's Vision 2030 for a long-lasting, mutually productive relationship.
- Personalizing your process and approach based on a developed understanding of your company itself.
Burden or Opportunity?
Quincy is proud to be a Registered Service Provider to U.S. defense companies.
Developing Domestic Defence Capabilities
The Kingdom of Saudi Arabia has a long history of defense offset requirements which encourage its national defense initiatives to simultaneously promote technology transfer and develop domestic capabilities. Since the 1960s, defense contractors have been obliged to include offset agreements in their proposals to provide products and services to Saudi Arabia. Since Saudi Arabia's Economic Offset Committee currently requires that 45% of a contract's gross value provides local offset benefits, it is critical to consider how these requirements will be met from a strategic perspective.
“Direct offsets” relate directly to the exported product, in contrast to “indirect obligations”, which deliver societal benefits through indirect programs and partnerships that may not involve the exact product or service contract. The country’s priorities determine the multiplier used to generate offset credits to draw down these obligations. This is a most simple explanation of a complex area. Quincy can help identify or design programs that maximize credit impact, assist in negotiations and support the execution of offset programs.
At the Quincy Group, we work with our clients to not only identify and develop programs to accompany contracts but to also ensure programs attract aggressive offset multipliers in incentivized sectors. The Quincy Group transforms Saudi Arabian offset requirements from obligations into competitive advantages for our clients.
How The Quincy Group Can Help With Offset Obligations in Saudi Arabia
With an in-depth local history, a home office in Riyadh and 50 years of experience advancing the interests of companies like yours when it comes to Saudi Arabian business dealings, The Quincy Group has the expertise and connections you need to position yourself for further success in this region. Contact us about offset obligations in Saudi Arabia today.