Riyadh is quickly becoming a leading location for regional headquarters in the Middle East. As part of Saudi Arabia’s Vision 2030 strategy, the Kingdom is working to attract international companies to set up their regional headquarters in the capital, thereby establishing it as a strategic hub for GCC and MENA operations. The results are evident: since the launch of the Regional Headquarters (RHQ) Program in 2021, by the Ministry of Investment and Royal Commission for Riyadh City, more than 540 licenses have been granted by 2025, with major corporations like BlackRock, PwC, and Deloitte already making the transition.
Saudi Arabia offers an exceptional 30-year tax exemption package that starts from the date of license issuance, along with simplified processes and a business environment specifically crafted for global growth. Minister of Investment Khalid Al Falih has highlighted that these tax benefits, along with relaxed Saudization rules and spousal work permits, make the Kingdom an attractive option for multinational companies.
This article looks into the real benefits of setting up your regional headquarters in Riyadh and explains why so many decision-makers are opting for KSA instead of traditional alternatives.
Why are companies moving their RHQs to Riyadh?
Riyadh’s key location makes it perfect for managing activities in the Gulf Cooperation Council and the wider Middle East and North Africa region. The city is at the crossroads of fast-growing markets and provides connectivity that competes with major hubs.
The Saudi RHQ program delivers significant financial and operational advantages:
- A 0% corporate tax and withholding tax for 30 years on eligible RHQ activities is the most generous tax incentive in the region. This exemption starts from the date the license is issued and applies to income generated from providing management, coordination, and support services to affiliated entities. The Saudi RHQ program removes both corporate income tax and withholding tax for designated regional entities, leading to significant cost savings that positively affect your profits.
- A 10-year exemption from Saudization requirements eliminates the pressures of workforce localisation during your important growth stage. Unlike regular Saudi companies that have to fulfil specific quotas for Saudi national employment, RHQs have full hiring freedom during this time. The Ministry of Investment has introduced more relaxed Saudization rules specifically for the RHQ program, although minimum skill levels and full-time employee standards are still necessary. Businesses struggling to meet these basic criteria can apply for exemptions directly from the Ministry.
- Unlimited work visa allocation for RHQ employees removes staffing limitations. You can hire the specific talent needed for your regional operations without dealing with visa limits or lengthy approval times.
- Simplified licensing and quick regulatory processes greatly reduce setup time. The Ministry of Investment of Saudi Arabia (MISA) and Royal Commission for Riyadh City have set up special pathways to speed up applications for eligible companies.
- Premium residency options are available for top executives and their families, delivering quality-of-life advantages that make relocation easier. The Saudi RHQ program offers work permits for spouses, enabling partners of relocated executives to pursue their own careers in the Kingdom. These upgraded residency benefits feature longer validity and faster services than regular work residency permits.
- Modern infrastructure and the proximity of various sectors position you close to Saudi Arabia’s fastest-growing industries, including technology, financial services, logistics, and energy. The Kingdom’s large-scale infrastructure investments in high-quality business facilities, telecommunications networks, and transportation connections.
Riyadh vs. Dubai: A Practical Comparison
| Feature | Riyadh RHQ | Dubai HQ |
|---|---|---|
| Tax incentives | 0% corporate and withholding tax for 30 years | Differs by free zone; no similar long-term program |
| Saudization/Visa requirements | 10-year tax exemption, unlimited work visas | Standard UAE rules apply |
| Market access | Central GCC/MENA location; priority for the Saudi market | Focus on global connectivity |
| Operating costs | Lower commercial rental costs (2024 data indicates 30-40% savings) | High prices in core business districts |
| Government contracts | Mandatory RHQ requirement for contracts exceeding SAR 375 million | No equivalent special treatment |
The Saudi government has mandated that starting in 2024, companies must set up an RHQ in Saudi Arabia to bid on contracts surpassing SAR 375 million. This creates a major competitive edge. This means that to access major government projects and procurement opportunities, companies must have their headquarters in Riyadh. The Kingdom’s strategic positioning is not just about contracts; it also involves participation in large-scale projects and preparations for hosting major international events such as the 2029 Asian Winter Games and Expo 2030.
What Sectors gain the most from RHQs in Riyadh?
Certain industries gain more from Saudi Arabia’s regional headquarters program as it aligns with Vision 2030 goals and market trends.
- Technology companies are in high demand as Saudi Arabia invests heavily in digital transformation, smart cities, and AI projects. Google and Amazon have already set up their regional offices, recognising the Kingdom’s commitment to becoming a tech hub in the region.
- Financial services companies gain from Saudi Arabia being the biggest economy in the GCC and its advanced capital market. BlackRock’s decision to set up an RHQ in Riyadh shows confidence in the growth path of the Kingdom’s financial sector.
- The energy and industrial sectors take advantage of Saudi Arabia’s leadership in oil and gas while engaging in the energy transition. The Kingdom’s giga-projects and renewable energy projects provide opportunities for companies with relevant expertise.
- Professional service firms like PwC and Deloitte have expanded their presence in response to the rise in RHQs, driving demand in sectors that depend on their expertise.
- Logistics and supply chain businesses capitalise on Saudi Arabia’s strategic and large infrastructure investments in ports, rail networks, and logistics zones.
- Manufacturers of fast-moving consumer goods serve a population of more than 32 million with increasing purchasing power and changing consumption habits influenced by demographic changes and economic diversification.
A key factor for successful RHQ setups is their alignment with Saudi Arabia’s economic priorities. Businesses that contribute to Vision 2030’s diversification goals, offer technical expertise, or serve the rising local demand, gain the most success. The Kingdom’s stability, skilled labour force, strategic location, and growth potential have made it a preferred destination for international companies, with executives and professionals increasingly considering it an ideal place to grow their careers. For firms already active in certain MENA countries, creating a Saudi subsidiary as part of their RHQ strategy offers additional advantages – it ensures a dedicated legal presence for operations specific to the country while enhancing their ability to participate in government tenders and positioning them to capitalise on opportunities in the Saudi market.
How to Apply for an RHQ License in Saudi Arabia?
The application process is structured and primarily managed by MISA and the Royal Commission for Riyadh City. Companies are required to meet SAR 200 million annual global revenue and show real regional coordination functions.
Required documents are:
- Audited financial statements (3 years)
- Corporate structure documentation
- Detailed business plan with regional coordination activities
- Proof of multi-country operations
- Executive management profiles
Applications usually require 4-6 months for approval after submission, but expedited processing is offered for priority sectors. A thorough business plan can significantly shorten approval timelines.
Post-approval compliance requirements:
- Maintain a physical office in Riyadh that meets minimum space standards
- Hold regular management meetings in Saudi Arabia
- File annual reports with MISA
- Make sure real strategic decision-making takes place in the Kingdom
The physical presence must be significant – regulatory authorities verify that real regional oversight is conducted from your Riyadh office.
How to Start an RHQ in Saudi Arabia with Analytix?
We are a leading business consultancy with over 16 years of experience and a proven track record in helping our clients set up their headquarters in Saudi Arabia. Our experienced consultants have managed many RHQ license applications since 2021, reaching a 95% first-time approval rate. We manage all stages, from license applications and regulatory compliance to office setup and operational support, working closely with key government authorities like MISA, the Ministry of Commerce, and the Royal Commission for Riyadh City.
Our multilingual team provides clients with customised support and clear communication, often getting approvals within approximately 4.2 months. Through partnerships with leaders in manufacturing, technology, and logistics, our priority has always been to build client trust through up-to-date certifications and working closely with ministries and legal advisors.
Conclusion
Riyadh’s rise as a regional headquarters is fuelled by significant benefits: a 30-year tax holiday that is distinct in the region, a strategic location for GCC and MENA operations, and regulatory frameworks specifically designed for international expansion. Increasingly, global companies are choosing Saudi Arabia for their regional headquarters due to the financial benefits that come with the real market access and operational flexibility.
For companies considering business setup in Saudi Arabia, the RHQ program provides a reliable way to establish a presence in the Kingdom and broader region. The mix of tax exemptions, Saudization relief, unlimited visa allocation, and mandatory RHQ requirements for key government contracts offers attractive financial conditions for qualifying companies. With more than 540 licenses issued and counting, the program has shown its effectiveness in diverse sectors.
Contact us today to book a free consultation and find out how we can assist with your regional headquarters application and launch. Our team is prepared to address your inquiries and develop a tailored plan for your expansion to Saudi Arabia.
