Saudi RHQ Licence: 2026 Incentives and Rules

Foreign companies looking to base their regional operations in Saudi Arabia continue to follow a defined pathway in 2026, starting with a regional headquarters (RHQ) licence issued through the Ministry of Investment. The licence is the gateway to a package of financial and operational incentives designed to draw global firms to the Kingdom.

A central benefit is access to government contracting. Foreign companies without a Saudi RHQ are generally barred from competing for covered government and government-related contracts above the applicable threshold, while RHQ holders become eligible. In a recent 2026 change, the Kingdom eased parts of this rule for some smaller or lower-value projects, reducing the cases where a local RHQ is required.

Tax and labour incentives

RHQ holders benefit from a 0% corporate income tax rate on eligible RHQ income for 30 years, renewable, and 0% withholding tax on qualifying outbound payments for the same period. They also receive an exemption from Saudization quotas for 10 years, plus expanded work-visa capacity — with some 2026 descriptions stating no cap on RHQ work visas.

In return, companies must meet operational substance requirements. These commonly include a physical office in the Kingdom, at least 15 full-time staff within the first year, and at least 3 C-suite roles. The activity profile typically requires at least 3 mandatory and 5 optional regional activities.

Costs and channels

The standard MISA licence fee was reported as suspended in 2026, with the earlier issue fee historically cited at SAR 12,000 and renewal at SAR 62,000. Indicative setup costs were reported at roughly SAR 500,000 to SAR 1.5 million, excluding office build-out and staffing, while typical first-year office and operations costs ranged from about SAR 5 million to SAR 15 million depending on city and headcount.

Companies obtain the RHQ licence through the Ministry of Investment, then complete commercial registration and use the related labour and visa systems after licensing. For the many multinationals serving the region from Riyadh and Jeddah, the framework offers a clearer route to establishing a long-term base in the Kingdom.

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