Regional Headquarters (RHQ) Setup
For multinational groups establishing their MENA headquarters in the Kingdom.
The Regional Headquarters programme lets a multinational group base its MENA command centre in the Kingdom, in exchange for a substantial tax and labour incentive package. It is run by the Ministry of Investment, and it is also the gateway to Saudi government contracting.
What an RHQ gives you
- 0% corporate income tax and 0% withholding tax on qualifying RHQ activities, for a fixed incentive period
- An exemption from Saudization requirements for the RHQ entity
- A dedicated work visa allocation from licence grant
- Eligibility for government contracts above SAR 1 million
Incentive periods and allocations are set by MISA and change. We confirm the current position before you apply.
Since January 2024, Saudi government agencies and state-owned entities have been restricted from awarding contracts above SAR 1 million to foreign companies without a licensed Regional Headquarters in the Kingdom. A formal exemption mechanism was introduced in 2026 through the Etimad platform, so the requirement is no longer absolute, but exemptions are project-specific and granted at the contracting entity's request. For a multinational that expects to bid regularly, an RHQ remains the only reliable route.
Last verified: September 2026
What an RHQ actually commits you to
An RHQ is not a registered address. Within a year of licence issue the entity must employ a minimum headcount including C-suite executives, mandatory strategic and management activities must begin within months of issue, and further optional activities must be running inside the first year. Strategic decisions must be taken in board meetings physically held in the Kingdom. An RHQ also cannot itself trade. Commercial activity sits in a separately licensed entity.
While an RHQ coordinates regional strategy, commercial trading and contracting activities typically operate through an independent subsidiary. Explore the requirements for establishing an operating company in Saudi Arabia alongside your regional headquarters.
Furthermore, RHQ tax treatment and the operating subsidiary's filings are separate positions that have to be managed together. Learn more about how we manage corporate tax, VAT, and reporting through our ZATCA tax compliance and bookkeeping services.
What an RHQ gives you
- 0% corporate income tax and 0% withholding tax on qualifying RHQ activities, for a fixed incentive period
- An exemption from Saudization requirements for the RHQ entity
- A dedicated work visa allocation from licence grant
- Eligibility for government contracts above SAR 1 million
Incentive periods and allocations are set by MISA and change. We confirm the current position before you apply.
Our Specializations
- Strategic RHQ Planning and Feasibility.
- Managing the RHQ licence application with MISA.
- Structuring RHQ operations to meet Ministry of Commerce requirements.
- Advising on RHQ-specific tax incentives.
Ready to discuss your setup?
RHQ engagements start with a conversation about whether it fits. Tell us your group structure and where you expect to bid.