Saudi Arabia has changed the rules for multinationals that want to do business with the Kingdom. Companies that want government contracts can no longer manage their Saudi business from Dubai or elsewhere. If you want to win public-sector work, a regional headquarters in Saudi Arabia is now a strategic necessity.

This guide explains what the RHQ program is, who qualifies, what you gain and how to apply.

What Is the RHQ Program?

The RHQ program was launched under Saudi Vision 2030 to attract multinational companies to establish their Middle East and North Africa (MENA) management hubs in Riyadh. The Ministry of Investment (MISA) and the Royal Commission for Riyadh City (RCRC) lead it.

Since January 2024, government entities have been directed not to contract with foreign companies that have no regional HQ in the Kingdom, with limited exceptions. This policy is why so many firms are now looking to relocate their regional HQ to Riyadh.

RHQ License Requirements

Exact thresholds can change, so confirm current figures with MISA before filing. The core RHQ license requirements generally include:

• Foreign parent company: The applicant must be a multinational with an established international footprint, not a startup with a single-country presence.
• Physical presence in Riyadh: You need a real office and a Saudi commercial registration. A virtual address won’t qualify.
• Core regional activities: The RHQ must carry out a defined set of strategic functions for the region, such as strategic management, treasury, marketing, procurement, HR or business development.
• Senior leadership: The entity must employ senior executives, typically including a regional general manager or equivalent, based in the Kingdom.
• Minimum headcount: A minimum number of full-time employees must be hired within a set period after licensing.
• Commitment to the program: You submit a business plan showing how the RHQ will manage regional operations from Saudi Arabia.

The RHQ is meant to be a functioning management center, not a mailbox. MISA reviews applications on that basis.

RHQ Tax Benefits and Incentives

The financial case is strong. Qualifying RHQs can receive:

• 0% corporate income tax on qualifying regional HQ activities for up to 30 years
• 0% withholding tax on certain payments to non-resident related parties for up to 30 years
• Saudization (Nitaqat) exemption for a defined period, giving more flexibility in hiring
• Visa and work permit facilitation for executives and their families
• Access to government contracts, the main commercial driver for most applicants

The tax benefits apply to qualifying activities, so structuring matters. Revenue from outside the approved scope may still be taxed at normal rates, which is why your corporate structure should be planned with a licensed advisor from the start.

RHQ and Government Contracts

For many companies, eligibility for Saudi public-sector work is the real reason to apply. Government entities are the Kingdom’s largest buyers, spending heavily on infrastructure, technology, healthcare, energy and giga-projects like NEOM and Qiddiya.

Firms without an RHQ risk being shut out of tenders, while competitors that have localized gain a structural advantage. The Kingdom has also opened bidding to international companies, which makes local presence more valuable. Read our breakdown of what global firms need to know about Saudi government project bidding.

RHQ vs. a Standard Commercial Setup

A common question is whether an RHQ license replaces your Saudi commercial registration or sits alongside it. In practice the RHQ is a specialized license for regional management activities, while a standard MISA license plus a Commercial Registration (CR) covers local trading and operations. Many groups need both, one for regional management and one for in-country business.

If you only need an operating company, see our guide to foreign company registration in Saudi Arabia. For a full breakdown of the two licenses, read MISA License vs. Commercial Registration (CR): What’s the Difference?.

How to Apply for an RHQ License

The process is straightforward when you prepare properly:

1. Assess eligibility. Confirm your group’s size, activities and regional scope meet the criteria.
2. Prepare the business plan. Outline your regional functions, headcount plan and investment commitment.
3. Submit your application through MISA. Include corporate documents, financial statements and your commitment letter.
4. Receive the RHQ license. After approval, you register the entity and obtain the license.
5. Establish your Riyadh operations. Lease office space, appoint leadership, open bank accounts and register with relevant authorities (ZATCA, GOSI and others).
6. Hire and comply. Meet your headcount commitments and maintain compliance to keep the benefits.

Timelines vary with document readiness and how completely your plan is documented, so early preparation saves weeks.

Common Mistakes to Avoid

• Treating the RHQ as a paper exercise rather than a working office
• Underestimating hiring commitments and timelines
• Ignoring tax structuring until after licensing
• Mixing up the RHQ license, standard MISA license and CR requirements

Ready to Establish Your Regional Headquarters?

The RHQ program rewards companies that commit early and structure carefully. With the right approach, you can secure long-term tax advantages, qualify for government work and position your business at the center of the region’s fastest-growing economy.

Arab Dreams helps multinationals through every stage, from eligibility assessment to licensing and Riyadh setup. Explore our Regional Headquarters services or contact our team for a consultation to plan your move.