Multinational companies looking to establish a management hub in Saudi Arabia can apply for a Regional Headquarters (RHQ) licence, issued by the وزارة الاستثمار as a non-operating licence. The programme targets groups that will oversee operations in at least two other countries across the Middle East and North Africa region from a base in the Kingdom.
The RHQ licence covers specific activities such as regional management, strategic planning, budgeting, marketing oversight, support services, and coordination for group entities. It is not a trading or revenue-generating commercial licence. To qualify, an applicant must be part of a multinational group with a presence in at least two other countries, appoint senior executives resident in Saudi Arabia, and commit to housing key regional decision-making functions — such as CEO, finance, HR, and strategy — in the Saudi RHQ.
Key incentives
Approved RHQ entities receive a 30-year 0% corporate income tax rate and a 30-year 0% withholding tax rate on qualifying outbound payments, including dividends, royalties, and certain related-party service fees, starting from the date of licence issuance. They also gain a 10-year exemption from Saudization (Nitaqat) quotas, after which normal rules can apply.
On staffing, RHQ companies are granted expanded or effectively unlimited work-visa quotas and fast-track processing for senior executive visas during the setup phase. Benefits commonly extend to work permits for spouses, relaxed age limits for dependent children's residency (often up to 25), and eligibility for dependents to work through recognised mechanisms. Senior executives and their families may also qualify for premium residency.
RHQ-licensed companies are generally required to base the regional headquarters in an office in الرياض, though they may keep branches elsewhere in the Kingdom. The status carries added weight from early 2026: foreign companies without an RHQ licence will generally be excluded from bidding on Saudi government and government-related contracts above 1 million ريال سعودي, making the licence a practical prerequisite for major public tenders.
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