Recognizing Potential, Reaping Opportunities,
and Sparking Growth
Saudi Arabia is actively recognizing its potential, seizing opportunities, and driving economic growth both domestically and internationally. The establishment of Regional Headquarters RHQ in Saudi Arabia plays a significant role in this strategic expansion.
Accounting for the largest GDP and consumer market in MENA, its access to 40 fast-growing markets within four hours by flight, and its strategic location connecting three continents, the Kingdom is the ideal place for multinational companies to set up their regional headquarters.
- The RHQ Program is a joint initiative by the Ministry of Investment and the Royal Commission for Riyadh City, created as part of Saudi Arabia’s Vision 2030 and the National Investment Strategy.
- The program is designed to enable and facilitate the ambitious growth plans of participating organizations in the region.
Saudi Arabia presents a multitude of benefits for companies locating their RHQ in the country
Strategic Location
Advantageous location to access a large market. Enhancement of regional operations and expansion of presence in the broader region.
Business-friendly environment
An investment ecosystem that promotes regulatory transparency, solid infrastructure, and talent attraction, enabling predictability in RHQ investments.
Specially designed incentives
Specially designed incentives for establishing RHQs including human capital incentives, tax incentives, and special hand-holding end to end support.
Game-changing opportunities
Dynamic business landscape and access to unparalleled opportunities for strategic growth across sectors.
Strategic Initiatives
Initiatives that enable regional expansion and provide investors with a competitive edge. Initiatives include the (GSCRI) and the Special Economic Zones (SEZ).
RHQ Incentives
We offer specially designed incentives such as human capital incentives, tax incentives, and special handholding support services.
10-year Saudization Exemption
Exemption from complying with Saudization percentage requirements for 10 years for the RHQ entity.
Limit Exemption
are allocated automatically from day 1 of the RHQ license being granted.
Waiver of Professional Accreditation
The RHQ employees are exempted from professional accreditation requirements applicable in the Kingdom if they are duly accredited in the country of origin, except of Engineering and Medical certification.
Expat Work for Professions Restricted to Saudi Nationals
RHQ employees benefit from an accelerated issuance of work for professions normally restricted to Saudi nationals.
Spouse work permit and Dependent age extension to 25 years old
Dependents of RHQ employees are permitted to work and apply for jobs. The maximum age for residency of male dependents of RHQ employees is extended to 25 years old; no age restriction for single female dependents.
A 30-years 0% Withholding Tax
Withholding tax payments to non-resident related parties, Withholding tax (‘’WHT’’) on dividend payments from RHQ to its foreign parent entity(ies), Withholding tax for payments to non-resident unrelated parties for services necessary to carry out RHQ activities
Eligibility for Premium Residency
Premium residency for RHQ’s executives subject to the Eligibility Premium Residency Program
Handholding support through MIZA
Exceptional value-added services that support company’s growth and expansion.
A 30-years 0% Corporate Income Tax
0% corporate income tax for RHQ activities
Frequently Asked Questions
Regional Headquarters Program (RHQ) is a joint initiative by the Royal Commission for Riyadh City (RCRC) and Ministry of Investment (MISA) to position the Kingdom as the leading regional hub for multinational companies.
A RHQ in the Kingdom of Saudi Arabia is a unit of a Multinational Group duly established under the laws of Saudi Arabia for the purpose of supporting, managing, and providing strategic direction to its branches, subsidiaries and affiliates operating in MENA region.
Multinational Groups can apply for this service to manage and supervise the strategic direction, functions, and businesses conducted by their branches, subsidiaries, and affiliates in MENA region.
MENA region includes the countries of the Gulf Cooperation Council (Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar), Yemen, Iraq, Jordan, Palestine, Lebanon, Syria, Egypt, Libya, Tunisia, Algeria, Mauritania, and Morocco. In addition to the MENA region, the Multinational Group is free to manage entities in additional regions and jurisdictions through the RHQ
To qualify for an RHQ license, a Multinational Group must have a presence in at least two countries (excluding its headquarters and Saudi Arabia), operate in the MENA Region, and engage in activities categorized under Strategic Direction, Management Function, or Support functions through its branches, subsidiaries, or affiliates in the MENA region
The RHQ of the Multinational Group must be either a registered branch of a foreign company in Saudi Arabia, or a subsidiary of a Multinational Group that is established in Saudi Arabia.
The RHQ activities are classified into two categories (i) mandatory activities; and (ii) optional activities.
- Exemption from complying with Saudization percentage requirements for a period of 10 years for the RHQ entity.
- Work for professions that are restricted to Saudi nationals for RHQ employees.
- Limit Exemption in the number of work that can be applied for by the RHQ entity for its employees. (250 allocated automatically from day 1 of RHQ license granted)
- A 30 years 0% Corporate Income Tax and Withholding Tax*.
- Dependents of RHQ Employees are permitted to work and apply for jobs through AJEER program.
- The maximum age for residency of male dependents of RHQ employees is extended to 25 years old.
- The RHQ employees are exempted from professional accreditation requirements applicable in the Kingdom, if they are duly accredited in the country of origin
- Eligibility for Premium Residency for 3 Executives.
- Access to MIZA “end to end” services at discounted rates with preferential treatment.
*Tax Benefit is only for the RHQ Licensed entity and not extended to subsidiaries, branches and affiliates under management
The mandatory RHQ activities are the provision of strategic direction and management functions. RHQ strategic direction functions include:
Formulate and monitor the regional strategy, (b) Coordinate strategic alignment, (c) Embed products and/or services in the region, (d) Support acquisitions, mergers and divestments, and (e) Review financial performance. RHQ management functions include: (a) Business planning, (b) Budgeting, (c) Business coordination, (d) Identification of new market opportunities, (e) Monitoring of the regional market, competitors, and operations, (f) Marketing plan for the region, and (g) Operational and financial reporting
The optional RHQ activities are:
(a) Sales and Marketing Support, (b) Human Resources, and Personnel Management, (c) Training Services, (d) Financial Management, Foreign Exchange, and Treasury Centre Services, (e) Compliance and Internal Control, (f) Accounting, (g) Legal, (h) Auditing, (i) Research and Analysis, (j) Advisory Services, (k) Operations Control, (l) Logistics and Supply chain management, (m) International Trading, (n) Technical Support or Engineering Assistance, (o) Network Operations for IT System, (p) Research and Development, (q) Intellectual Property Rights Management, (r) Production Management, and (s) Sourcing of Raw Materials and Parts.
No. The minimum activities that the RHQ must provide are the Required RHQ activities – provision of strategic direction and management functions –, in addition to minimum three optional RHQ activities. For the optional RHQ activities, the applicant can select any of the activities mentioned under the previous Question
Yes. RHQ required activities must commence within six months after the grant of the RHQ License by MISA, and the three RHQ optional activities must commence before the end the first year of receiving the RHQ License
No. The RHQ License is granted to only perform RHQ activities (required and optional RHQ activities). If the Multinational Group, that holds the RHQ License, wishes to conduct commercial operations and/or other activities than the RHQ activities, the Multinational Group should obtain the required license for such commercial operations and/or activities to be conducted under a different entity than the RHQ.
The RHQ license duration ranges from 1 year to 5 years (based on applicant selection).
- Copies of at least two commercial registrations or commercial licenses issued in two different countries, excluding the Kingdom of Saudi Arabia and the country in which the headquarters of the Multinational Group is located
- A copy of the applicant’s commercial registration or commercial license for the parent company which should be located outside MENA Region
- Global corporate financial statement audited for either the latest finished year or the one before if the most recent one isn’t finalized yet
- A completed RHQ License Online Application Form.
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Investor-Manual-English
