600 companies now have their regional HQ in Saudi

Around 600 foreign companies have set up their regional headquarters in Saudi Arabia.

Some of the most prominent firms that have already relocated their headquarters to Saudi Arabia are Northern Trust, Bechtel and Pepsico from the US, and IHG Hotels and Resorts, PwC, and Deloitte from the UK, an Arab News report conveyed.

US-based investment bank Morgan Stanley had been granted the approval to establish its regional headquarters in Saudi Arabia, in November 2024.

This has happened since the 2021 launch of the Saudi Program for Attracting Regional Headquarters (RHQ) of multinational corporations to the Kingdom of Saudi Arabia’s capital.

This particular attempt has been spearheaded by the Ministry of Investment and the Royal Commission for Riyadh City, according to a Saudi Press Agency report.

Regional headquarters program

The regional headquarters program in Saudi Arabia offers a range of incentives to international companies. It is as part of this program that entitles the corporates to receive a 30-year tax relief package, announced in December 2023. The package allows these companies zero% corporate income tax and also withholds tax for the qualifying regional headquarters.

Additionally, the program streamlines the process of setting up operations in any region in Saudi, providing comprehensive support services to assist companies in their transition.

What is attracting these firms to Saudi Arabia?

Apart from the regional headquarters program, it is also the modern infrastructure and the other facilities that are attracting the international firms to the country. The program also facilitates access to international K-12 schools, with seven new schools having been established in the country.

How do foreign firms contribute to Saudi’s economic growth?

The establishment of the regional headquarters of around 600 foreign companies in Saudi is expected to substantially contribute to the growth of the country’s economy.

The initiative had been adopted to double the size of Saudi’s economy, improve the quality of life in the country and most importantly foster Riyadh’s position among the top 10 largest city economies in the world by 2030.

What drives the success of the regional headquarters program?

Apart from 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 with its commitment to a business-friendly environment and long-term economic stability, constitute as magnetic parameters in attracting international companies to be headquartered in Riyadh.