RHQ Programme: Benefits and How Firms Qualify

Multinational companies that establish a regional headquarters (RHQ) in Saudi Arabia — usually in الرياض — to manage their Middle East and regional operations can access a wide package of incentives under the Kingdom's RHQ programme,

The most significant benefits are financial. Eligible RHQ activities qualify for a 0% corporate income tax rate for 30 years, generally renewable from the RHQ license date. The programme also applies a 0% withholding tax on dividends, royalties and RHQ-related payments to non-resident related parties over the same 30-year period. Companies retain the freedom to repatriate profits and capital to their global parent without RHQ-specific restrictions.

Hiring and family benefits

RHQ entities receive a Saudization (Nitaqat) exemption or grace period for 10 years, giving flexibility for expatriate hiring in the early phase. The programme offers expanded or unlimited visa quotas and fast-track processing for C-suite and senior executives, along with broad rights to hire expatriate staff. Family benefits include work permits for spouses and extended residency for dependents, while professional accreditation requirements are waived for certain regulated roles tied to the RHQ.

Why an RHQ matters for contracts

Since 1 January 2024, central government entities and state-linked bodies — including Public Investment Fund (PIF) entities — may not award contracts above ريال سعودي 1,000,000 to companies whose regional headquarters are located outside Saudi Arabia, except through approved exemptions. The threshold applies to estimated contract value, so smaller contracts may proceed without an RHQ.

A formal exception mechanism now allows government entities to contract with non-RHQ companies in specific cases, while the general preference for RHQ firms remains. Overall, an RHQ presence is a material factor in eligibility and evaluation for many major government and PIF-related tenders, and gives firms priority over foreign companies without a headquarters in the Kingdom.

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