The RHQ Mandate Explained
In February 2021, the Saudi government announced that from January 2024, companies wishing to sign government contracts must have their regional headquarters in Saudi Arabia. This landmark policy has already attracted over 200 multinational companies to establish their RHQ in Riyadh.
Who is Affected?
The mandate applies to any foreign company that:
- Seeks government contracts or procurement opportunities
- Participates in government tenders
- Wants access to Saudi government-affiliated projects
- Plans to work with government agencies or sovereign wealth funds
Benefits of Establishing an RHQ
- Government Contract Access: Eligibility for all government procurement
- Tax Incentives: Competitive tax rates and potential zero-tax zones
- Strategic Location: Central position between Europe, Asia, and Africa
- Talent Pool: Access to the Kingdom's young, educated workforce
- Premium Real Estate: World-class office spaces in KAFD and DQ
Requirements for RHQ Setup
- MISA Investment License with RHQ activity
- Physical office space in Saudi Arabia
- Minimum 3 full-time employees
- Substantive regional management functions
- Financial reporting to Saudi authorities
Timeline & Process
The typical RHQ setup process takes 3-6 months. SafaArban expedites this to 45-60 days through our direct relationships with MISA, the Royal Commission, and the Ministry of Commerce.