The Kingdom of Saudi Arabia (“KSA”) has launched its Regional Headquarters (“RHQ”) Program as a joint initiative of the Ministry of Investment Saudi Arabia (MISA) and the Royal Commission of Riyadh City (RCDC) which aims to invite large multinational groups to establish their regional headquarters in KSA by offering special government assistance, waiver on government fees, and licensing assistance. The RHQ will also be given a license validity between 1-5 years and be exempted from certain Saudization requirements.
The program follows through with the new law issued in January 2021 and expected to take effect on 1 January 2024, restricting international businesses to contract with the Saudi Government and their related agencies if they do not have their RHQ in the KSA.
CONDITIONS FOR QUALIFICATIONS:
Interested organizations must have a presence in more than two jurisdictions with an aim to establish a RHQ in KSA for support and management of affairs within its branches, subsidiaries, and affiliates in the Middle East and North Africa (MENA) region.
Registered RHQs are required to showcase performance for their strategic decisions and management functions within six months once their license is issued. Additionally, any entity registered as an RHQ is not allowed to conduct any commercial activities but may be able to offer limited sales and marketing support, training, and advisory services.
For further information regarding the Regional Headquarters Program and Creation Company Set-Up Services in the KSA, email us at [email protected] or call our KSA +966 54 995 2676 Dubai +971 4 878 6240.