RHQ Deadlines & Penalty Structure
Understanding the timeline and consequences of RHQ non-compliance is essential for protecting your Saudi government contract eligibility.
The RHQ Mandate Has Been Active Since January 2024
For over two years, foreign companies without a valid RHQ license have been blocked from participating in Saudi government contracts valued at SAR 1 million or more. Enforcement is now fully established across all ministries, public authorities, and major government-backed projects.
RHQ Program Timeline
February 2021
RHQ Program Announced
Saudi Arabia announces the Regional Headquarters Program as part of Vision 2030.
January 2024
Mandate Became Effective
RHQ requirement became mandatory for government contracts ≥ SAR 1M.
2024-2026
Full Enforcement
Ongoing enforcement: Non-compliant companies blocked from government tenders.
Penalty Structure
| Scenario | Consequence | Impact |
|---|---|---|
| No RHQ License | Complete Tender Block | Cannot participate in any government contracts ≥ SAR 1M |
| Branch Only (No RHQ) | Tender Block | Branch license does not satisfy RHQ requirement |
| Application in Progress | May Apply for Exception | Temporary exemption possible while application pending |
| RHQ License Lapse | Tender Block Until Renewed | Must renew license to maintain eligibility |
How Tender Blocking Works
The Saudi government has implemented systematic verification of RHQ compliance within its procurement processes:
1. Tender Application Phase
When submitting a tender application for contracts ≥ SAR 1M, companies must provide valid RHQ license documentation as part of their qualification package.
2. Verification Check
Government entities verify RHQ status through MISA databases. Companies without valid licenses are automatically disqualified.
3. Ongoing Compliance
RHQ status is verified not just at tender submission but throughout contract execution. License lapses can affect ongoing contracts.
Grace Periods & Exceptions
Application-in-Progress Exception
Companies with RHQ applications actively under review may apply for temporary exemptions to continue participating in tenders while awaiting license issuance.
Exception May Be Granted If:
- ✓RHQ application is already submitted to MISA
- ✓Application is in active processing
- ✓Good faith effort to comply is demonstrated
Exception NOT Available If:
- ✗No RHQ application has been filed
- ✗Previous RHQ license was revoked
- ✗Pattern of non-compliance
Take Action Now
Facing a Deadline? Get Urgent Help
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