Why You Should Get Your RHQ License in Saudi Arabia?

As Saudi Arabia continues its efforts to grow and prosper, RHQ License Saudi has emerged as a resource that will benefit both parties. We bring a whole guide that simplifies the procedure to get the RHQ license Saudi.

What is RHQ License Saudi?

RHQ license Saudi is issued to multinational companies who are set to establish themselves in KSA. Having the license makes sure that companies operate legally in the region. Acquiring the RHQ license Saudi has its benefits.

Saudi Arabia’s Economic Growth

The Kingdom of Saudi Arabia is witnessing a great deal of reform. There are active attempts to reduce its core dependency from oil. KSA has been trying to diversifying its means of economy. It is reflected in the Vision 2030 Plan.

The plan also includes introducing Saudi Regional Headquarters Program. It is to welcome a growing amount of multinational companies to open their regional headquarters in Riyadh. The Saudi Regional Headquarters Program went into effect from January 1st, 2024.

Saudi Regional Headquarters Program encourages multinational companies to operate their MENA regional headquarters in KSA. RHQs entities are registered under the Saudi laws.

MENA countries encompass GCC countries: Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar. They also include Iraq, Yemen, Jordan, Palestine, Syria, Egypt, Libya, Tunisia, Lebanon, Algeria, Mauritania, and Morocco.

Regional Headquarters entities are a part of multinational groups. They are formed under Saudi Arabia’s laws. Their function is to support, manage and offer direction to its branches, affiliates and subsidiaries operating in Middle East and North Africa region.

The government of KSA views RHQs as the core centers of managing the administrative forefront of respective companies across the whole region.

Benefits of setting up an RHQ in Saudi Arabia

There are a number of advantages when it comes to having an RHQ license Saudi. Some notable benefits are:

  • Access to KSA market
  • Tax exemptions
  • Strategic location

Companies get an exemption from local work quotas and Saudization for whole ten years. They get access to work visas even for positions that are usually held for Saudi nationals only. There is no limit on the work visa for RHQ employees either.

Setting up a Company and RHQ in Saudi Arabia is pretty neat. The dependents of RHQ employees are allowed to find employment under Ajeer program. Children of RHQ staff qualify to stay until they turn twenty-five in age.

An RHQ license Saudi recognizes foreign work qualifications. There is also the added benefit of having MISA fee waiver after first year.

RHQ have the incentive of a thirty-year tax relief. It begins from the day they receive their RHQ License Saudi.

The three RHQ executives on the top also have the privilege of premium residency in exchange of no charge.

Ministry of Investment provides end to end support through MISA RHQ care team. Their services include finding accommodation and sorting the paperwork.

Requirements for RHQ license in KSA

In order to qualify for an RHQ license Saudi, companies have to fulfill the requirements.

The RHQ in KSA should be a different part or branch of the main company.

The multinational company has to present a considerable amount of their international presence. Saudi Arabia and home country will not be counted. This presence should be shown in at least two different countries.

Companies need to set up a physical office in KSA. It will work as their central command unit.

There are mandatory RHQ license Saudi activities. These include management functions, regional market analysis, marketing strategies, strategic direction and optional activities.

The MNC is not to directly engage in commercial activities other than the ones permitted under the RHQ license Saudi. The multinational company has to limit its activities to mandatory activities and at least three optional activities.

Management functions consist of:

  1. Budgeting
  2. Business planning
  3. Identification of new market opportunities
  4. Forming a marketing plan for region
  5. Business coordination
  6. Monitoring of the regional market
  7. Analyzing competitors
  8. Monitoring operations
  9. Operational and financial reporting

Strategic direction encompasses of:

  • Review financial performance
  • Formulate a regional strategy
  • Align your products or services to the region
  • Oversee the strategies
  • Support for mergers, divestments, acquisitions

Optional activities are for:

  • Training services
  • HR and personnel management
  • Financial management
  • Sales
  • Marketing
  • Treasury center services
  • Compliance
  • Accounting
  • Foreign exchange
  • Logistics
  • Supply chain management
  • International trading
  • Technical support
  • IT operations
  • Research and development
  • Advisory services
  • Auditing

Commercial registration by the Saudi consulate

Provide a commercial registration. Saudi consulate at the home country will be the one authenticating it.

Consolidated financial statements

Submit a verified copy of last financial year’s consolidated audited financial statements. They will have to be certified by the Saudi Embassy.

Annual audited Report Submission

One of the requirements for RHQ license Saudi is to submit annual audit reports.

Rules and Restrictions

During the first operational year in the Kingdom of Saudi Arabia, the requirement for RHQ license is to employ 15 full time employees at the very least. Three of these employees are to be for the executive level. It is mandatory that the employees of these RHQ are residents of the country. They also need to have their back accounts and address in Saudi Arabia. The requirement for RHQ license is to begin their operations within the six months of their RHQ license Saudi being issued.

Saudi RHQ License Fee

The annual Saudi RHQ license fee starts at SAR 2,000. The initial subscription cost is SAR 10,000. This is required RHQ license fee for five years.

Regional Headquarter Set-up Process in KSA

The process is long but there are two main stages of setting up the regional headquarter in Saudi Arabia:

  1. Apply for the MISA license
  2. Integrate RHQ entity as branch or LLC


Multinational companies looking forward to business set up in Saudi Arabia will find great deal of benefits when they establish their regional headquarters. They will have to comply to the requirements for RHQ license, rules and regulations of the country and get their RHQ license Saudi.

Scroll to Top