Introduction

Saudi Arabia has emerged as a prominent destination for foreign investments and businesses, with a strong focus on enhancing its business climate. Saudi Arabia introduced four special economic zones in April 2023 to bolster its position as a global investment centre, aiming to diversify the economy and create an attractive environment for international companies. Saudi Arabia is rapidly emerging as a powerhouse in the business world, aiming to create an investor-friendly environment for foreign companies.

Saudi Arabia, a member of the G20, possesses one of the world’s largest and fastest-growing economies, driven by its abundant natural resources, including oil, natural gas, and minerals. The country offers investment opportunities in various sectors, such as tourism, communications, and renewable energy. Its world-class infrastructure and facilities create a favorable environment for investors and entrepreneurs. Additionally, Saudi Arabia provides an exceptional quality of life, with cities like Riyadh, Jeddah, Medina, and Dammam, a diverse expatriate community, and picturesque landscapes, including stunning beaches.

Regional Headquarters License in Saudi Arabia

The Regional Headquarters Program, initiated by the Ministry of Investment and the Royal Commission for Riyadh, invites global companies to establish their regional headquarters in Saudi Arabia. These regional headquarters serve as vital bases for multinational corporations, ensuring compliance with Saudi laws and providing strategic support and management for their branches and subsidiaries across the Middle East and North Africa. Al Taasis helps you acquire Regional Headquarters license conveniently.

The Ministry of Investment, in collaboration with the Ministry of Human Resources and Social Development, has introduced incentives to support regional headquarters. These incentives include customized visa grants, permission for spouses to work under the residency of their partners, and an extension of the age limit for the children of regional headquarters employees to 25 years.

Premium Residency for Executives of RHQ

The Premium Residency program is one of the most attractive aspects of setting up an RHQ in Saudi Arabia. This residence permit grants foreign nationals the right to live, work, and own businesses and property in the Kingdom without requiring a sponsor. This initiative, implemented by the Ministry of Investment in coordination with the Premium Residency Center, offers a host of benefits:

• Residential Freedom: Premium Residency holders and their eligible family members can reside, work, and invest in Saudi Arabia, with the ability to freely change employment within the private sector.
• Property Ownership: The right to own residential, commercial, and industrial real estate in all areas of the Kingdom, except for Mecca, Madina, and border regions.
• Ownership of Vehicles:The right to own cars and other means of private transportation and license them within Saudi Arabia.
• Family Benefits: Issuing visit visas for various family members, including parents, grandparents, grandchildren, siblings, and their children.
• Investment Opportunities:The right to invest in the Saudi Capital Market
• Workforce Management: Possibility to recruit foreign domestic workers and arrange their residency.
• Travel Flexibility:The freedom to leave and enter the Kingdom at their discretion, using lanes designated for Saudi citizens at Saudi airports.
• Continuation for Family: In the event of the primary holder’s death, the spouse and children under 21 will retain their premium residency rights and benefits.

Companies with RHQ Licenses in KSA

The appeal of Saudi Arabia’s business environment is evident in the increasing number of international companies relocating to the Kingdom. The government’s decision to enter contracts only with companies with regional headquarters in the Kingdom has attracted 44 international companies. Notable names such as PepsiCo, PwC, Clifford Chance, Bupa, MBC Group, Hewlett Packard, ABB, and Bechtel have already set up their regional headquarters in Saudi Arabia, aligning with the government’s vision for economic growth and diversification.

As of the third quarter of 2023, over 162 RHQ licenses have been issued, and the Kingdom has ambitious plans to have 480 companies open regional HQs by 2030, aligning with the objectives of Vision 2030.

Requirements for Regional Headquarters in KSA

For those considering setting up RHQs in Saudi Arabia, there are specific requirements and activities that must be met. RHQs must perform mandatory strategic and management activities within six months of obtaining their license from the Ministry of Investment and Saudi Authority for Industrial Cities and Technology Zones (MODON). These activities include formulating and monitoring a regional strategy, coordinating strategic alignment, embedding regional products and services, and more.

In addition to the mandatory activities, RHQs must also carry out at least three optional activities within a year of obtaining their license. These optional activities encompass various aspects of business management, from human resources and financial management to research and development and logistics.

RHQs must also employ at least 15 full-time employees, with at least three at the executive director or vice president level, within a year of obtaining the license. Non-compliance with this requirement may lead to the revocation of the license.

Learn more about Regional Headquarters licensing requirements.

Establish Your Regional Headquarters in Saudi Arabia with Al Taasis

Saudi Arabia’s commitment to attracting global companies through its RHQ program and the Premium Residency initiative provides a compelling case for businesses to set up their regional headquarters in the Kingdom. With its strategic location, robust infrastructure, and a wealth of incentives, Saudi Arabia is not just a regional business hub but a gateway to the world of opportunities. As more international companies recognize the benefits of investing in Saudi Arabia, the Kingdom is set to continue its journey towards becoming a global economic powerhouse.

By establishing your regional headquarters in the Kingdom, you can tap into its vast business potential while enjoying the privileges of Premium Residency. Be part of Saudi Arabia’s thriving business landscape and experience the freedom and opportunities it offers.

Contact us to know more about the prerequisites of your business journey.