Saudi RHQ Program goes into effect with exceptions

NOHA.GAD
Jan 2, 2024

Riyadh - Sharikat Mubasher: Saudi Arabia’s Regional Headquarters (HRQ) Program entered into force on 1 January with several exceptions to the rules, including contracts below SAR 1 million.

The exceptions include contracts executed outside of the kingdom, deals with firms that are the sole providers of their service or commodity, and emergencies that can only be addressed by a foreign firm without regional headquarters, as reported by the Um Al-Qurra newspaper.

According to the program, having a regional headquarters in the Kingdom is a prerequisite requirement for foreign firms to start or expand their businesses in Saudi Arabia.

Firms without regional headquarters can still compete for government tenders, but government agencies will only be able to approve them if they are technically superior and 25% cheaper than the next best offer, or if there are no competing offers.

Last week, the Saudi Cabinet endorsed contracting regulations for firms that do not have RHQ in the Kingdom, however, it did not specify how many contracts below SAR 1 million a foreign firm could sign with the same government agency.

Moreover, the Saudi Ministry of Investment recently added a 30-year tax relief incentive package to the RHQ Program to streamline the process for multinational firms establishing their RHQ in the Kingdom.


Share

Related News

35 Chinese companies establish RHQ in Saudi Arabia
News
Calendar Icon
March 17, 2025
35 Chinese companies establish RHQ in Saudi Arabia
readmore
Aramco Ventures backs Ucaneo’s drive to expand DAC technology
News
Calendar Icon
March 16, 2025
Aramco Ventures backs Ucaneo’s drive to expand DAC technology
readmore
L&T pacts with ACWA Power to build desalination plant in Saudi Arabia
News
Calendar Icon
March 13, 2025
L&T pacts with ACWA Power to build desalination plant in Saudi Arabia
readmore
Saudi PIF secures Pokémon Go in $3.5bn acquisition
News
Calendar Icon
March 13, 2025
Saudi PIF secures Pokémon Go in $3.5bn acquisition
readmore
Siemens Energy wins $1.6bn project to advance energy transition in Kingdom
News
Calendar Icon
March 12, 2025
Siemens Energy wins $1.6bn project to advance energy transition in Kingdom
readmore
Longevity Wellness Hub secures $4mn to expand in GCC
News
Calendar Icon
March 12, 2025
Longevity Wellness Hub secures $4mn to expand in GCC
readmore
Carrier opens new Middle East Experience Center in Dammam
News
Calendar Icon
March 12, 2025
Carrier opens new Middle East Experience Center in Dammam
readmore
Visa launches Tap to Add Card feature in Saudi Arabia
News
Calendar Icon
March 9, 2025
Visa launches Tap to Add Card feature in Saudi Arabia
readmore
Saudi PIF backs AirAsia with $100mn investment
News
Calendar Icon
March 9, 2025
Saudi PIF backs AirAsia with $100mn investment
readmore
Deem Finance partners with J.P. Morgan in landmark $400mn ABS deal
News
Calendar Icon
March 6, 2025
Deem Finance partners with J.P. Morgan in landmark $400mn ABS deal
readmore