Why Global Companies Are Setting Up Regional Headquarters in Saudi Arabia

RHQ in Saudi is not just a license — it’s a gateway to growth, government contracts, and regional dominance.

Saudi Arabia has launched a bold initiative to attract multinational companies to establish their Regional Headquarters (RHQs) in the Kingdom, primarily in Riyadh.
From 2024, companies without RHQs in Saudi may no longer be eligible for government contracts, making this a strategic necessity for global firms operating in the region.

What Is an RHQ License?

An RHQ license is a special legal structure that allows international companies to establish a non-commercial base in Saudi Arabia to supervise, support, and manage their operations across the MENA region.
While RHQ itself cannot generate revenue directly, it opens doors to substantial strategic advantages.

Who Can Apply?

A foreign multinational company that wishes to establish an entity in Saudi Arabia as its regional headquarters for the purposes of supporting, managing, and strategically directing its branches and subsidiaries operating in the Middle East and North Africa region.

• The company must have at least two branches or subsidiaries located in two different countries outside Saudi Arabia.

Establishment Type of RHQ

The RHQ must be established as a separate legal personality in Saudi Arabia, either as a:

• Limited Liability Company (LLC), or
• Registered branch of a foreign entity

Key Benefits for Foreign Investors

• Eligibility for government tenders and contracts
• Zero corporate income tax and withholding tax
• 100% foreign ownership
• Streamlined immigration and visa processes for RHQ staff
• Elevated brand positioning in the region's largest economy

Permitted Activities

The RHQ is allowed to supervise, support, and coordinate regional operations. Permitted functions include:

• Strategic direction
• HR
• Finance
• Legal
• Marketing
• Compliance
• R&D coordination

Post-Establishment Obligations

• Must not conduct revenue-generating commercial operations
• Must begin mandatory RHQ activities within 6 months of license issuance
• Must begin at least 3 optional RHQ activities within 1 year (selected at registration)
• RHQ employees carrying on core functions must be qualified; at least 3 executives at Director or VP level are required
• Must employ at least 15 full-time staff within one year (including senior executives)

Important Notes

• RHQ is not a commercial license — it cannot issue invoices inside Saudi Arabia
• You can hold other operational licenses alongside RHQ for local revenue-generating activities

Start your RHQ journey smart — with start easy.