Legal Readiness for Your Regional Headquarters in Riyadh Saudi Arabia’s Regional Headquarters (RHQ) Program provides legal and regulatory benefits, including tax exemptions and regional operational authority, ensuring full compliance with local investment laws. Eastern & Co offers comprehensive legal support for RHQ establishment, registration, and compliance.

Over the past two years, a significant shift has emerged in the investment landscape: regional and global companies are relocating their headquarters from Dubai to Riyadh.

The reason is not merely economic — it’s a strategic and legal decision driven by Saudi Arabia’s evolving business ecosystem.

? This transformation began with the launch of the Regional Headquarters Program (RHQ), introduced by the Ministry of Investment (MISA) and the Royal Commission for Riyadh City (RCRC). The program aims to attract multinational corporations to establish their regional headquarters in Saudi Arabia.

⚖️ Why Is Saudi Arabia Becoming an Attractive Destination?

? 1. Tax Incentives and Exemptions

- RHQ-licensed companies enjoy a 10-year tax exemption on both corporate income tax and withholding tax.
? 2. Operational and Regulatory Flexibility

- Saudi Arabia allows RHQs to manage regional operations both within and outside the Kingdom without the need for additional licenses, provided the headquarters is active and delivers strategic services to its corporate group.
? 3. Exclusive Access to Government Contracts

- Starting from 2024, companies without a regional headquarters in Saudi Arabia will no longer be eligible to contract with government entities or state-owned companies.
? 4. Vision 2030 and Infrastructure Growth

- The RHQ initiative forms part of Saudi Vision 2030, aiming to position Riyadh as a leading regional business hub, competing with cities such as Dubai and Singapore.

? Meanwhile, Dubai Remains Strong With:

✅ Tax Flexibility — 0% corporate tax in free zones.

✅ Ease of Incorporation and unrestricted profit repatriation.

✅ A globally diverse environment built over two decades.

Choosing between Dubai and Riyadh is not just a financial decision — it’s a legal and operational one that determines your company’s regional positioning.

If your company is considering relocation or establishing a new RHQ, it’s essential to review the legal framework, registration requirements, and incentives under Saudi Arabia’s RHQ Program with MISA.

For professional guidance on RHQ registration, compliance, and legal structuring, contact Eastern & Co:

? https://easternnco.com/contact_us