RHQ Programme: Benefits and How to Qualify in Saudi

Foreign companies looking to work with Saudi government bodies and Public Investment Fund (PIF) entities face a key requirement: obtaining a Regional Headquarters (RHQ) licence, issued by وزارة الاستثمار. From 2024 onward, RHQ status is generally required to participate in most government and PIF-related procurement in the Kingdom.

Under the rules, RHQ status is typically needed for government contracts above roughly SAR 1,000,000, while contracts below that threshold are exempt. There are further exceptions: foreign companies without an RHQ can still win contracts if the project is highly technical, or if their bid is at least 25% lower in value than competing proposals.

The incentives

The programme comes with a substantial package designed to last 30 years, subject to the company continuing to meet the conditions. RHQ entities receive a 30-year corporate income tax exemption on eligible activities, effectively a 0% rate for the incentive period, along with a 30-year withholding tax exemption on qualifying outbound payments including dividends and related-party payments.

On the workforce side, RHQ entities are exempt from Saudization (Nitaqat) requirements for the first 10 years and benefit from expanded or effectively unlimited quotas for expatriate work visas, fast-tracked processing, and unrestricted work visas for RHQ employees. Spouses of RHQ employees are eligible for work permits, and companies also receive waivers for certain professional accreditations, priority in government tendering, and discounted access to some investment-related services.

How to qualify

To be eligible, a multinational group must have or plan to have operations in at least three countries within its regional cluster, and must use the Saudi RHQ as its centre of regional management and administrative control. The RHQ must demonstrate documented strategic direction and oversight over the regional business, covering strategic planning, performance management, regional marketing strategy, and regional financial planning.

For residents and expat professionals, the programme signals continued demand for international talent in the Kingdom as major companies establish regional bases here.

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