# Saudi RHQ program guide

The Saudi Regional HQ program, visualized.

Saudi Arabia is pulling multinationals' regional headquarters to Riyadh with a 30-year tax holiday and a hard rule: no RHQ, no government contracts. Here's the whole program — the benefits, the qualification bar, the setup process, and the call on whether to do it — including why 700+ firms (pharma among them) already have.

Last updated 26 June 2026For BD, market-access & corporate-strategy teams · not legal or tax advice

Orientation, not advice — and the rules are moving

The headline facts here — the 30-year 0% tax package, the 1 Jan 2024 government-contract rule, the 15-employee / 3-executive substance bar — are well-sourced (official Saudi bodies + EY / KPMG / DLA Piper, each cited). But the framework is actively evolving: Saudi issued new draft RHQ rules for public consultation in 2025. Confirm current requirements with MISA or a Saudi tax/legal advisor before acting. This guide is not legal or tax advice.

Run byMISA + RCRCLive RHQs700+The reward0% tax · 30 yrsThe stick since1 Jan 2024Min substance15 staff · 3 execsLocationRiyadh

# the stakes

With an RHQ vs without one

The program is built on a carrot and a stick. The carrot is a 30-year tax holiday; the stick is exclusion from government contracts. Here is what changes either way.

Dimension	With an RHQ in Riyadh	Without one
Government contracts	Eligible to bid for state & state-entity tenders	Barred from government contracts (since 1 Jan 2024)
Corporate income tax	0% on approved RHQ activities — 30 years, renewable	Standard Saudi corporate income tax
Withholding tax	0% on approved RHQ payments	Standard withholding tax
Saudization (Nitaqat)	10-year exemption for the RHQ entity	Standard Saudization quotas apply
Work visas	250 visas from day one + restricted-profession access	Standard visa limits
Market signal	A committed regional player	A transactional vendor

# the program is working

700+ RHQs, ahead of schedule

Licensed regional headquarters by date — the Kingdom passed its 2030 target of 500 years early, and pharma sits among the sectors driving it.

Apr 2024350+ S6

Mid-2025~650 S3

End-2025700+ S1

2030 target500 — beaten S3

# what you get

Four reasons multinationals are doing it

Tax is the headline, but in a state-led economy the contract access is the real driver. Talent and setup support round it out.

01 · Tax S4·S5

A 30-year tax holiday

The headline incentive, and the reason the package moves boardrooms.

0% corporate income tax on approved RHQ activities
0% withholding tax on approved RHQ payments
Locked for 30 years, renewable

02 · Market access S2·S6

The government-contract key

In a state-led economy, this is the real driver — not the tax break.

Since 1 Jan 2024, state entities can't contract an MNC whose RHQ isn't in Saudi
No RHQ = locked out of public-sector revenue
Applies across ministries, giga-projects and state-owned buyers

03 · Talent S5·S6

Visas & Saudization relief

The operational unlock for standing a regional team up fast.

250 work visas allocated from day one
10-year exemption from Saudization quotas for the RHQ entity
Access to professions otherwise reserved for Saudis + spouse work permits

04 · Support S1·S6

A concierge into the market

A relationship with the investment authority, not a queue ticket.

Dedicated MISA relationship + faster setup
Premium-residency facilitation for key staff
Operational support for licensing and expansion

# do you qualify

The bar — and the obligations

The RHQ program is for genuine multinationals, and the incentives are tied to real substance — not a brass-plate registration. This is the qualification bar.

Be a genuine multinational — a presence in at least two countries beyond Saudi Arabia and the home-HQ country.S1 · S6

Run real strategic & management functions for the region from the Saudi entity — substance, not a brass-plate office.S2 · S6

Employ at least 15 full-time staff within the first year, including 3 C-suite executives (e.g. CEO / CFO).S5 · S6

Keep the RHQ as the regional decision-making hub — not a sales or marketing office.S2

Carry a genuine local cost base — office, payroll and operations physically in the Kingdom.S6

# how to set one up

From business case to live incentives

The licence is quick; the work is building genuine substance in the first year. Steps marked gate are the ones that actually decide success.

Process steps

Test the business casegate

Weigh your Saudi/regional government-revenue exposure against the build cost (office, C-suite, ≥15 staff). The incentive pays back fastest for firms with material public-sector revenue.

Apply via MISA

File the RHQ licence application with the Ministry of Investment — the joint MISA / RCRC pathway.

Establish the Saudi entity

Incorporate the regional headquarters in Riyadh.

Build the substancegate

Hire the 3 required C-suite executives and reach ≥15 full-time employees within the first year.

Activate the incentives

Switch on the 30-year tax relief, the day-one visa allocation and the Saudization exemption.

Maintain compliancegate

Keep genuine strategic functions in-Kingdom — the incentives are tied to ongoing substance, not a one-time filing.

Timeline

Licence application (MISA)windowweeks

Substance ramp to ≥15 staff + 3 execsbindingwithin 12 months

Tax-incentive horizonhorizon30 years, renewable

The licence itself is a matter of weeks; the binding clock is the first-year substance requirement — the C-suite and ≥15 staff must be in place within 12 months. The reward then runs for 30 years (S4 · S5 · S6).

# the call

Should you set one up?

One question decides it: how much of your revenue touches the Saudi state, now or in your plan?

Do you have — or want — material Saudi / regional government revenue?

YES → set it up

Strong public-sector exposure

Defense, construction, consulting, tech, financial services — and pharma selling to MOH / NUPCO. The contract eligibility plus the 30-year tax holiday outweigh the build cost.

Win/keep eligibility for state tenders
Capture the 0% tax package
Signal regional commitment

The package pays back fastest here.

NO → weigh it carefully

Little government exposure

Minimal public-sector revenue and a small regional footprint? The 15-employee substance cost can outweigh the benefit. A lighter Saudi presence may fit better.

Substance cost may exceed the tax saving
Startups/SMEs that aren't 2-country MNCs don't qualify at all
A KSA branch / CR is a separate, lighter question

Model the build cost before committing.

# why this matters for pharma

The pharma & RaqibHealth angle

The RHQ wave is a tailwind for KSA-native intelligence: the pharma multinationals moving their regional command center to Riyadh need exactly what RaqibHealth runs on.

The pharma multinationals — AstraZeneca, Novartis, GSK, Pfizer and peers — are exactly the firms standing RHQs up in Riyadh.

An RHQ is, by mandate, a Saudi-based regional command center — and it runs on KSA-specific market & regulatory intelligence. That is precisely what RaqibHealth provides.

For pharma readers: build an SFDA-intelligence layer into your RHQ operating model from day one.

Note the boundary: the RHQ program is for large MNCs. A startup or local SME needs a Saudi commercial registration / entity instead — a separate, lighter decision.

# sources

Where the figures come from

Official Saudi sources (MISA / RCRC / Invest Saudi / SPA) are marked in green; the tax-package detail is corroborated by EY, KPMG and DLA Piper.

S1Invest Saudi (Catalyze) — Regional Headquarters (RHQ) Program liveOfficial

S2Royal Commission for Riyadh City (RCRC) — Program to attract the Regional Headquarters of international companies (RHQ) liveOfficial

S3Saudi Press Agency — Saudi Arabia's strategy attracts ~600+ regional headquarters of multinational corporations 2025Official (news)

S4EY — Saudi Arabia offers 30-year tax holiday under the Regional Headquarters program Dec 2023Advisory

S5KPMG — Tax incentives announced for the RHQ program (0% CIT + 0% WHT on approved activities, 30 years) 2023Advisory

S6DLA Piper — Saudi Regional Headquarters Program: an overview of tax and non-tax incentives Feb 2024Advisory

S7Legalmondo — Saudi Arabia: Draft Rules on Regional Headquarters (RHQ), public consultation Sep 2025Advisory

This guide is informational and not legal, regulatory or tax advice. The Saudi RHQ program's requirements, incentives and eligibility change and are subject to draft revisions (2025) — always confirm against MISA, the Royal Commission for Riyadh City and a qualified Saudi advisor before acting. RaqibHealth cites its sources on every record. info@raqibhealth.com · RaqibHealth home