Why Global Companies Are Moving Their Regional Headquarters to Riyadh in 2026: A Strategic Guide for Business Expansion

Suhail Mangali
Suhail Mangali

Business Development Manager

Suhail Mangali
Suhail Mangali

Business Development Manager

Saudi Arabia’s Regional Headquarters (RHQ) Program has become one of the most influential business transformation initiatives in the Middle East. Recent Saudi Government budget discussions confirmed that 600+ multinational companies have already committed to shifting their RHQ operations to Riyadh, marking a historic shift in regional corporate strategy. For serious business owners and decision-makers, RHQ is not just another incentive it is now a strategic advantage for long-term expansion into the GCC, Middle East, Africa, and South Asia. Learn more on Saudi Arabia RHQ Program 2026 with J K.

Long-Term Tax Certainty: A 30-Year Zero-Tax Opportunity

One of RHQ’s strongest advantages is its unmatched 0% corporate income tax (CIT) and 0% withholding tax (WHT) on qualifying RHQ activities. This 30-year tax exemption, officially published through Saudi tax circulars, provides global companies stability rarely found in today’s unpredictable tax landscape. For companies managing regional functions from finance to strategy this environment significantly improves profitability, budgeting, and operational control.

Riyadh: The New Command Center for 40+ Growth Markets

Saudi Arabia’s central geographical position enables RHQ companies to govern operations
across:

  • Middle East
  • Africa
  • South Asia
  • Central Asia
  • Parts of Europe

With the ongoing transformation of Riyadh into a global business capital driven by megaprojects, logistics reforms, and infrastructure investments companies gain:

  • Faster inter-regional decision-making
  • Reduced fragmentation of regional operations
  • Enhanced access to the world’s fastest-growing emerging economies

This is precisely why global firms like PepsiCo, PwC, Deloitte, Schlumberger, Siemens, and
Unilever have already committed to RHQs in Riyadh.

Exceptional Workforce Flexibility: Talent Without Restrictions

The RHQ Program was designed around the realities of multinational HR management. Benefits include:

  • 10-year exemption from Saudization quotas
  • Large visa quotas from Day 1
  • Work permits for spouses, extended dependent residency
  • Waived professional accreditation for many expat roles
  • Ability to relocate global experts without delays

This workforce mobility significantly reduces HR risks and accelerates regional capability building.

Global-Standard Compliance, Predictability & Governance

Saudi’s RHQ licensing rules now align with global headquarters standards. Companies must maintain:

  • A physical HQ office
  • A resident executive director
  • Minimum 15 employees (including 3 executives)
  • Governance meetings held in Saudi
  • Separate accounting records

These requirements provide clarity, reduce compliance risks, and support seamless regional oversight.

Why 2026 Is the Most Critical Year to Enter

Riyadh’s RHQ ecosystem is entering a phase of accelerated growth, backed by:

  • Government-backed infrastructure
  • Growing investor inflows
  • Special tax rulings
  • Increased multinational participation
  • Clear regulatory frameworks

Companies entering in 2026 will gain first-mover visibility, positioning themselves ahead of competitors as Saudi Arabia becomes the new regional HQ capital.

How We Support Your RHQ Expansion

Our consulting services are specifically designed for businesses looking to expand into Saudi Arabia:

  • RHQ feasibility & eligibility assessment
  • RHQ license application & documentation
  • Economic substance setup
  • Saudi governance, director support & board structuring
  • HR, visa, & relocation management
  • Tax structuring aligned with RHQ exemptions
  • Ongoing compliance, reporting & strategic expansion support

We help you create an RHQ that is compliant, efficient, and strategically positioned for longterm regional leadership.

How J K Can Help?

At J K Management Consultancies, we help investors set up and operate businesses in Saudi Arabia with full compliance and end-to-end support. Our services include:

  • Company Formation & Licensing in KSA

  • MISA Investor Licenses

  • CR Registration, Saudization Support & Corporate Compliance

  • Vendor Registration (ARAMCO, SABIC, MA’ADEN, NEOM, SEC, MODON, & more)

  • SFDA Registration for Medical, Food & Cosmetic Products

  • PRO Services, Visa Processing & Documentation Support

We ensure your business enters the Saudi market smoothly, strategically, and in full alignment with Vision 2030 opportunities.

DROP US A MESSAGE

Start your business in Saudi Arabia with J K Management Consultancies.

From licensing to setup, we provide expert guidance to help you establish and grow your venture in the Kingdom’s thriving economy. Your success is our priority

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Go global UAE, KSA, UK, India. We’ve got you covered.