Regional Headquarters (RHQs) in Saudi Arabia

A Regional Headquarter (RHQ) in Riyadh serves as a central hub from which multinational groups manage and support their operations across a specific geographic area, typically covering multiple countries. By consolidating management functions in one location, RHQs facilitate streamlined decision-making, enhanced coordination, and centralized control over regional subsidiaries and branches. This strategic consolidation not only improves operational efficiency but also strengthens corporate governance and enhances the ability to respond swiftly to market changes.

In the context of Saudi Arabia, establishing an RHQ in Riyadh offers multinational corporations numerous advantages, including strategic positioning in the heart of the Middle East and North Africa (MENA) region. The Saudi government provides various incentives and supports to encourage international businesses to set up their RHQs in the Kingdom, aiming to boost economic diversification and attract foreign investment as part of its Vision 2030.

To be eligible for an RHQ license, the applicant must be a Multinational Group with a presence in at least two different countries of the MENA region through subsidiaries or branches, excluding KSA and the country where the Multinational Group’s headquarters is located.

• The RHQ must commence mandatory activities within six months after the license is granted, with optional activities starting before the first year ends.
• A minimum of 15 full-time employees is required by the end of the first year, including at least three Corporate Executive and Vice-President level employees.

• The RHQ in KSA can be a registered branch office or a subsidiary, treated as a separate legal entity.
• An RHQ License is specific to RHQ activities; commercial operations require a separate commercial license.

• Trade license/CR copy of the applicant company, duly apostilled.
• AoA/MoA or similar documents, apostilled or attested.
• Trade licenses issued in two different MENA countries, excluding KSA.
• Last year’s audited financial statements, apostilled or attested.

• Annual license fee: SAR 2,000.
• First-year service fee: SAR 10,000.

Establishing an RHQ in Riyadh offers strategic advantages such as central access to MENA markets, potential tax incentives, and supportive government initiatives aimed at facilitating international business operations and regional management efficiency.