Complete Guide to Saudi Arabia RHQ Requirements
Everything you need to know about Regional Headquarters licensing requirements for foreign companies doing business with the Saudi government.
In This Guide
What is an RHQ License?
A Regional Headquarters (RHQ) License is a business license issued by the Ministry of Investment of Saudi Arabia (MISA) that authorizes foreign multinational companies to establish their regional headquarters in the Kingdom of Saudi Arabia.
The RHQ program is a cornerstone of Saudi Arabia's Vision 2030 economic diversification strategy. It aims to position the Kingdom as a regional business hub by requiring foreign companies seeking government contracts to establish a genuine operational presence in Saudi Arabia.
Key Point
The RHQ mandate became effective on January 1, 2024. From this date, foreign companies must hold a valid RHQ license to participate in government contracts valued at SAR 1 million or more.
Who Needs an RHQ License?
The RHQ requirement applies to foreign multinational companies that wish to:
Required For:
- ✓Government contracts ≥ SAR 1M
- ✓Ministry and public authority tenders
- ✓PIF and giga-project contracts
- ✓NEOM and Red Sea projects
Exceptions:
- ○Contracts below SAR 1M threshold
- ○Purely private sector work
- ○Approved exception cases
- ○Certain regulated industries
Important Clarification
Having a branch license is NOT the same as having an RHQ license. Companies with existing branch operations in Saudi Arabia must still obtain an RHQ license to participate in government contracts above the threshold.
RHQ License Requirements
To obtain and maintain an RHQ license, companies must meet the following requirements:
Physical Presence
- Establish a physical office in Saudi Arabia (typically in Riyadh)
- Office must be a genuine operational facility, not just a registered address
- Lease agreements typically required for 3+ years
Staffing Requirements
- Minimum number of employees (varies by company size and industry)
- Senior management/C-level presence required
- Saudization requirements apply (Nitaqat compliance)
Operational Requirements
- Conduct genuine regional business activities from Saudi Arabia
- Regional decision-making functions required
- Support functions such as HR, finance, legal, or IT for regional operations
Exemptions & Exceptions
While the RHQ requirement is broadly applicable, there are mechanisms for exceptions:
Temporary Exemptions
Companies can apply for temporary exemptions while their RHQ application is in progress. This allows continued participation in tenders during the licensing period.
Contract-Specific Exceptions
In cases where no RHQ-compliant provider exists for specialized services, exceptions may be granted for specific contracts.
Industry Exemptions
Certain regulated industries or company types may have modified or exempted requirements based on their specific circumstances.
Benefits of RHQ Compliance
Government Contract Access
Full eligibility for Saudi government tenders and contracts above SAR 1M
Giga-Project Opportunities
Participate in Vision 2030 mega-projects including NEOM, The Line, and Red Sea
Regional Hub Status
Strategic positioning in the Middle East's largest economy
Long-term Market Access
Established presence for ongoing and future Saudi market opportunities
Next Steps
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