Being a leading economy in the MENA region, the Kingdom of Saudi Arabia (KSA) presents foreign entrepreneurs with a prime opportunity to expand their its presence across the MENA Region through the establishment of a Regional Headquarters (RHQ).
With a population exceeding 36 million, Saudi Arabia is one the MENA Region’s top economy.
Serving as the gateway to the GCC and wider MENA markets, Saudi Arabia offers unparalleled expansion opportunties for startups and multinational corporations.
Saudi Arabia has been implementing various economic and legal reforms to create a more favourable business environment. Initiatives such as Vision 2030 have been pivotal in refining the KSA’s business landscape.
Entities with RHQ status might qualify for notable tax privileges, including exemptions in VAT for imports.
The government’s expansive infrastructure ventures present lucrative prospects. Engaging in these state-endorsed endeavors provide companies opportunities for growth, partnership and innovation within the country.
The Saudi government has created special economic zones that provide extra advantages and incentives for companies that operate as an RHQ in the country.
The KSA has made trade agreements with countries like the United States, Canada, China, Singapore, and Turkey, which opened up the market and reduced tariffs for goods and services.
The government is pouring money into infrastructure development, such as building new airports, ports, and railways, which could offer chances for businesses in the engineering and construction industries.
A Regional Headquarters is defined as a subsidiary of an international firm governed by Saudi Arabian regulations. It enables global companies to establish their regional base in the KSA and oversee their satellite entities throughout the MENA region.
You will provide a commercial registration/license authenticated by the Saudi consulate from the originating country.
2You will provide attested copies of commercial registrations or licenses from two different countries, excluding Saudi Arabia and the Multinational Group’s headquarters country, verified by the Saudi Embassy in those nations.
3You must provide the attested annual audited consolidated financial statements from the applicant’s last financial year, verified by the Saudi Embassy in the relevant country.
Through subsidiaries or branches, global entities must have operational bases in at least two regions beside their main headquarters and Saudi Arabia.
2A Regional Headquarters (RHQ) in Saudi Arabia operates as a distinct legal entity, either as an independent company or as a branch of an international firm.
3The Regional Headquarters (RHQ) license holder should solely focus on activities pertinent to the RHQ’s operation and refrain from undertaking revenue-generating commercial activities outside this scope.
4The core operations of an RHQ must commence within six months of receiving the license.
5Subsequent to the procurement of the RHQ License, it is essential that within a year, the RHQ initiates a minimum of three discretionary RHQ-related activities.
6Personnel engaged in essential RHQ License tasks must possess expertise and knowledge fostered either at the main headquarters or at another regional hub of Multinational Group. Furthermore, a minimum of three of these employees should hold the distinguised positions of Executive Director and Vice President.
7Within the first year post-acqusition of the RHQ License, the RHQ must have a minimum of 15 full-time employees engaged in carrying out RHQ activities (including the senior level executives specified in point 6)
8The Ministry of Investment reserves the right to revoke the RHQ License under the following conditions:
It should be noted that obtaining an RHQ license in Saudi Arabia may be a lengthy process, spanning several months. The requirements and procedures vary depending on the nature of the business and its specific circumstances.
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