Saudi Arabia's Strategy Attracts Around 600 Regional Headquarters of Multinational Corporations
Around 600 foreign companies have established their regional headquarters in Saudi Arabia since the 2021 launch of the Saudi Program for Attracting Regional Headquarters (RHQ) of multinational corporations to the Kingdom of Saudi Arabia's capital, spearheaded by the Ministry of Investment and the Royal Commission for Riyadh City.
As part of the Vision 2030 economic diversification plan aimed at establishing Saudi Arabia as a prominent global business hub, the RHQ program offers a range of incentives to international companies. These include a 30-year tax relief package, announced in December 2023, which provides zero percent corporate income tax and withholding tax for qualifying regional headquarters. Additionally, the program streamlines the process of setting up operations in any region in the Kingdom, providing comprehensive support services to assist companies in their transition.
Saudi Arabia's modern infrastructure, including advanced facilities and technology, is also a key attraction for international firms. The program further supports expatriate employees by facilitating access to international K-12 schools, with seven new schools having been established in the Kingdom.
The establishment of the regional headquarters of around 600 foreign firms is expected to contribute significantly to Saudi Arabia’s economic growth.
The program's success is driven by several factors, including Saudi Arabia's strategic location at the intersection of Asia, Africa, and Europe, positioning it as a global logistics hub. The country’s young and skilled workforce, along with its commitment to a business-friendly environment and long-term economic stability, constitute key elements in attracting international companies.
This initiative is part of a broader strategy to double the size of the Kingdom’s economy, improve the quality of life, and position Riyadh among the top 10 largest city economies globally by 2030. Saudi Arabia's strategic efforts to attract regional headquarters reflect its commitment to achieving its Vision 2030 goals and diversifying its economy.
