Sources say Huawei is considering setting up a Middle East headquarters in Saudi Arabia.

CTOnews.com, April 10 (Xinhua)-- Huawei Technology Co., Ltd. is considering setting up its Middle East headquarters in Riyadh, the capital of Saudi Arabia, in response to the Saudi government's initiative to turn the country into a regional business center and growing diplomatic and commercial ties between China and Saudi Arabia, according to Bloomberg.

Huawei, which already has offices in the Saudi capital and other cities in the Middle East and regional headquarters in Dubai and Bahrain, is in talks with the Riyadh authorities. Huawei has not made a final decision, and a Huawei spokesman declined to comment, according to people familiar with the matter.

According to CTOnews.com, Saudi Arabia has previously announced that from 2024, government agencies will restrict doing business with foreign companies that do not have regional headquarters in the country, with a view to reducing economic outflows and attracting foreign investment. About 80 companies applied to move their headquarters to Riyadh at the end of last year, government officials said.