In 2021, the Kingdom of Saudi Arabia launched the Saudi Regional Headquarters Program to Attract Global Companies as part of its broader strategy to draw foreign investment and encourage multinational corporations to establish a physical presence in the Saudi market. The initiative aims to diversify the national economy and reduce its dependence on oil revenues.
In this article, we will explore the program’s objectives, the advantages it offers to international companies.
Program Overview
The Saudi Regional Headquarters Program (RHQ) is an initiative designed to attract international companies to establish their regional headquarters in Saudi Arabia. Its primary goal is to position the Kingdom — and particularly its capital, Riyadh — as the leading destination for regional headquarters across the Middle East and North Africa (MENA) region.
The program was first conceived in 2020, when His Royal Highness Prince Mohammed bin Salman directed the Royal Commission for Riyadh City to develop and launch the initiative in collaboration with the Ministry of Investment, under the supervision of a specialized steering committee. The program was officially launched in 2021.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
At its inception, the program set an ambitious target of attracting 500 regional headquarters of international companies by 2030. Remarkably, by 2025—well ahead of schedule—the program has already surpassed this goal, successfully attracting over 600 global companies.
It is worth noting that the program is supported by several key government partners, including the Ministry of Finance, the Ministry of Human Resources and Social Development, the Ministry of Commerce, the Ministry of Economy and Planning, the Local Content and Government Procurement Authority, the Zakat, Tax and Customs Authority, the General Authority for Foreign Trade, and the National Center for Government Resource Systems.
What is a Saudi Regional Headquarters?
A Saudi Regional Headquarters (RHQ) refers to an entity established by a global or multinational company in Riyadh to oversee and manage its operations across the Middle East and North Africa (MENA) region. This headquarters functions as a strategic hub that provides leadership, coordination, and support to the company’s offices, subsidiaries, and branches operating in other countries within the region.
To qualify for establishing a regional headquarters in Saudi Arabia, a company must be an international or multinational enterprise with active operations or branches in more than one country. Moreover, the RHQ in Saudi Arabia must carry out genuine administrative and managerial functions, such as human resources management, finance, sales, marketing, and regional strategic planning.
Objectives of the Regional Headquarters (RHQ) Program
Through the launch of the Regional Headquarters Program, the Kingdom of Saudi Arabia aims to achieve several strategic objectives:
Services Provided by the Program to Companies
The Saudi Regional Headquarters Program offers a comprehensive range of essential services designed to support companies across all sectors as they establish and operate their regional bases in Saudi Arabia. These services are categorized as follows:
1. Business Setup Services
The program assists companies in setting up their operations by providing temporary office spaces, housing options (such as apartments and villas) tailored to each company’s needs, and support in attracting local talent. It also offers a variety of advisory and administrative services to facilitate a smooth establishment process.
2. Logistics Services
These services cover travel arrangements and reservations, event organization, and sports or recreational activities, in addition to providing personal assistant services to ensure convenience for company executives and staff.
3. Support Services
Support offerings include business setup facilitation, provision of domestic staff, issuance of work permits for spouses, and assistance with finalizing legal and administrative procedures.
4. Consulting Services
The program also provides specialized consulting, including tax advisory, bank account setup assistance, and government relations services to help companies navigate local regulations effectively.
5. Exclusive Discounts
Participating companies benefit from exclusive discounts on a variety of services, including airlines, office spaces, housing, and educational services, further enhancing the overall value of operating within the Kingdom.
Financial Incentives for Companies
To encourage multinational corporations to participate in the Regional Headquarters (RHQ) Program, the Kingdom of Saudi Arabia has introduced a range of long-term tax exemptions designed to enhance the attractiveness of establishing regional operations in Riyadh. These incentives include:
Full exemption from corporate income tax.
Full exemption from withholding tax on payments made to non-resident related parties.
Full exemption from withholding tax on dividend payments made by the regional headquarters to its foreign parent entity (or entities).
Full exemption from withholding tax on payments made to non-resident, unrelated parties for services essential to carrying out the activities of the regional headquarters.
Available Sectors within the Program
The Saudi Regional Headquarters Program targets multinational companies operating across a wide range of sectors, including:
Professional Services
Healthcare
Communications and Information Technology
Logistics
Finance
Industry and Mining
Energy
Aviation and Defense
Construction
Education
Tourism, Hospitality, and Quality of Life
Food and Beverage
Oil, Gas, and Water
Finally, The Regional Headquarters Program represents a significant strategic initiative aimed at strengthening the Kingdom’s position as a leading business hub in the region. Its vision extends beyond merely attracting multinational companies — it seeks to create an integrated and dynamic business ecosystem that enables effective regional management and informed decision-making within Saudi Arabia.
Over the next few years, Riyadh is expected to emerge as one of the most influential business centers in the Middle East, rivaling regional powerhouses such as Dubai and Singapore in attracting and hosting global corporations.
If you are interested in joining the Saudi Regional Headquarters Program, our team is ready to assist you with all necessary procedures — handled with utmost precision and professionalism.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
Mohammed Alkhliwi Law Firm is a Saudi legal practice that serves individuals, institutions, and corporations, drawing on extensive experience in litigation and legal consultancy. The firm believes that law is not merely a set of regulations and procedures, but a powerful tool to protect rights and ensure justice. For this reason, the firm is dedicated to serving its clients with the utmost professionalism and responsibility.
