Saudi RHQ Programme: Benefits and How to Qualify

Multinational companies looking to run their Middle East and North Africa operations from Saudi Arabia can do so through the Regional Headquarters (RHQ) programme, which offers major tax and immigration incentives in exchange for meeting clear operational requirements. Here is how the programme works and how a company qualifies.

The RHQ programme applies only to multinational firms that set up a non‑commercial regional management hub for their MENA operations. The entity must be licensed by وزارة الاستثمار as an RHQ, maintain a legal presence with a physical office in the Kingdom, and act as a strategic and administrative nucleus for regional branches and affiliates rather than a profit‑generating local company.

Qualifying entities must carry out a set of mandatory regional management activities plus a minimum number of optional ones — commonly cited as three mandatory and five optional. Mandatory activities must begin within six months of the licence being issued, and optional activities within 12 months. An RHQ must also employ at least 15 full‑time staff in the first year, including three C‑suite or executive roles resident in Saudi Arabia.

The benefits

The incentives are substantial. An RHQ enjoys a 30‑year 0% corporate income tax holiday on eligible RHQ‑related income and a 30‑year 0% withholding tax on dividends, royalties and qualifying payments to non‑resident related parties. There is also a 10‑year exemption from Saudization (Nitaqat) requirements for RHQ staff.

On the immigration side, RHQs benefit from visa‑limit exemptions, accelerated issuance and effectively unlimited professional visas during the incentive period. Staff perks may include spousal work permits, an extended dependent‑child age limit of up to 25 years, and premium residency or concierge packages for senior executives.

Crucially, RHQs gain priority in government procurement. Foreign companies without an RHQ generally cannot bid for most Saudi government and Public Investment Fund contracts from 2024 onward, though these controls do not apply to dealings below SAR 1,000,000 or purchases made outside the Kingdom. From late 2025, an exemption mechanism allows government entities to seek approval in certain cases.

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