Regional Headquarters in the Kingdom of Saudi Arabia: is a unit of a Multinational group duly established under the laws of Saudi Arabia for the purpose of supporting, managing, and providing strategic direction to its branches, subsidiaries and affiliates operating in MENA region. RHQ program invites global companies' regional headquarters to relocate to Saudi Arabia, it was established as a joint initiative between Ministry of Investment (MISA) and Royal Commission for Riyadh City (RCRC).
AT A GLANCE
Saudi Arabia is the largest economy in MENA and the 18th largest economy in the world
Founded in 1876, Lilly is an innovation-driven company that has been serving patients in Saudi Arabia for more than 40 years. We create value by discovering and developing best-in-class molecules that address unmet medical needs. By strengthening our footprint in the Kingdom aligned with Vision2030, we intend to work closely with all stakeholders, to develop local talents, shape the R&D ecosystem, grow the local industrial footprint, and ensure that people living in Saudi are among the first in the region to gain broad access to innovative and safe medicines. We are grateful for our first 40 years in the Kingdom, and we look forward to the next 40 years of continued success.
Dimitri Livadas, President and General Manager, Eli Lilly Ltd
EAI Systems is a consultancy-led systems integration business headquartered in the UK since 2006. As part of an international delegation, we initially visited Saudi Arabia two years ago. Since then, we have witnessed dazzling transformation in the Kingdom under vision 2030 roadmap and chose Riyadh as our regional headquarters this year. We'll now build our regional capability with local talent to expand our digital transformation business in the Middle East. We look forward to opportunities with Ministries, Banks and Telecoms sector to bring new digital transformation technologies across the region.
Kailas Lovlekar, CEO, EAI Systems
Baker Hughes has been an integral part of Saudi Arabia for more than 80 years, dating back to the Prosperity Well, Dammam #7, the first well drilled in the Kingdom in 1938. As an energy technology company, we are committed to supporting Saudi Vision 2030, with a strong focus on driving the energy transition, building a strong energy ecosystem, and supporting localization initiatives in support of Saudi Arabia's journey towards becoming a global energy hub serving the world. Additionally, expanding Saudi Arabia as one of our regional headquarters will further strengthen our efforts to take energy forward along with our customers and partners in the region - making it safer, cleaner, and more efficient for people and the planet
Lorenzo Simonelli, Chairman & CEO, Baker Hughes
The country is facilitating the simplicity of doing business and that always helps with our investment decisions. Companies like ours like simplicity, and like the incentives to keep growing and create more jobs.
Ramon Laguarta, Chief Executive Officer, PepsiCo
Philips has been present in KSA for more than 80 years collaborating with local stakeholders, providing state-of-the-art technologies and solutions, transferring knowledge and developing Saudi talent. We are committed to maintaining a holistic, long-term presence in the Kingdom and are therefore delighted to announce our partnership with MISA. We have signed the MoU to join the Regional Headquarters Attraction program, wherein we will allocate regional resources and capabilities to serve our strategy in The Kingdom and the larger region. As a world leading health technology company, Philips has been at the forefront in creating collaborations between the public and private sector and has contributed to many of The Kingdom's nationwide Healthcare transformation projects aimed at improving patient and clinical outcomes - aligned to Vision 2030.
Mohammad Mostafa, General Manager, Philips Health System, Middle East & Turkey (MET)
Saudi Arabia is an exciting, fast-paced, dynamic, future-focused country with a clear and ambitious long-term energy policy that offers limitless opportunity for supply chain solutions providers like Alderley to fulfill the needs of a world-class energy sector.
Colin Elcoate, Chief Executive Officer, Alderley
Opterna fully supports Vision 2030 initiatives, particularly the move for local content production and regional headquarters licensing. Given that Saudi Arabia accounts for over 80% of the Middle Eastern economy, and that many international companies benefit from business in the Kingdom, it's only fair that we support these initiatives fully in return.
We have been working closely with the Ministry of Investment and moved our regional headquarters to Riyadh. The move has supported Gleeds' regional offices based in Dubai, Abu Dhabi, Qatar, and Cairo as well as benefited our wider global network.
Islam's holiest city draws millions of people from around the world every year. The region is home to Jeddah and King Abdullah Economic City on the Red Sea coast, where investors can leverage the international trade routes to serve consumers in the Middle East and North Africa.
Medina is home to Saudi Arabia’s first UNESCO World Heritage Site AlUla, it is also a booming business hub possessing two industrial areas with a total area of 10 million m2 and 236 factories producing petroleum products, building materials, food products, and a variety of other goods.
A first-class agricultural region with an abundance of water, fertile soil, and agricultural diversity. Qassim has the best access to electricity infrastructure at the national level, a large area of agricultural land, and an outstanding production capacity in food.
Known for its agricultural products, Tabuk is also an active commercial center and home to several giga-projects including NEOM and the Red Sea Project making it an attractive location for diverse investments across different sectors.
Situated on the Red Sea coast, Jazan's is home to several islands. Jazan City for Basic and Downstream Industries is one of the most important industrial cities and investment destinations in the region, due to its proximity to international shipping lanes.
One of the most fertile regions in Saudi Arabia, Al-Jouf region is characterized by its rich agricultural lands, diversity of crops, olive trees and mineral resources. Al-jouf is also renowned for its wind and solar endowment making it an attractive location for renewable energy investments.
A Regional Headquarter (RHQ) in the Kingdom of Saudi Arabia
Regional Headquarters Program (RHQ) is a joint initiative by the Royal Commission for Riyadh City (RCRC) and Ministry of Investment (MISA) to position the Kingdom as the leading regional hub for multinational companies.
A RHQ in the Kingdom of Saudi Arabia is a unit of a Multinational Group duly established under the laws of Saudi Arabia for the purpose of supporting, managing, and providing strategic direction to its branches, subsidiaries and affiliates operating in MENA region.
A Multinational Group is a group that has a foreign parent entity and which carries on business in more than one jurisdiction through the parent entity, its subsidiaries, branches or affiliates.
Multinational Groups can apply for this service to manage and supervise the strategic direction, functions, and businesses conducted by their branches, subsidiaries and affiliates in MENA region.
MENA region includes the countries of the Gulf Cooperation Council (Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar), Yemen, Iraq, Jordan, Palestine, Lebanon, Syria, Egypt, Libya, Tunisia, Algeria, Mauritania, and Morocco. In addition to the MENA region, the Multinational Group is free to manage entities in additional regions and jurisdictions through the RHQ.
The minimum eligibility criteria for an RHQ license is that a Multinational Group has a minimum presence in two different countries, excluding the Kingdom of Saudi Arabia and the country in which the headquarter of the Multinational Group is located, either through subsidiaries or branches.
The RHQ of the Multinational Group must be either a registered branch of a foreign company in Saudi Arabia, or a subsidiary of a Multinational Group that is established in Saudi Arabia.
The Regional Headquarter (RHQ) of an Multinational Group established in the Kingdom of Saudi Arabia may be eligible to receive the following benefits upon obtaining the RHQ License issued by MISA:
Exemption from complying with Saudization percentage requirements for a period of 10 years for the RHQ entity.
Work visas for professions that are restricted to Saudi nationals for RHQ employees.
No limitation in the number of work visas that can be applied for by the RHQ entity for its employees.
Dependents of RHQ Employees are permitted to work and apply for jobs through Ajeer program.
The maximum age for residency of male dependents of RHQ employees is extended to 25 years old*.
The RHQ employees are exempted from professional accreditation requirements applicable in the Kingdom, if they are duly accredited in the country of origin
Waiver from the MISA subscription fees for access to MISA investor service centers following the first year.
Access to MIZA “end to end” services at discounted rates with preferential treatment. Please contact us for more information.
Please note that these benefits are applicable only for the RHQ entity and its employees, and do not extend to affiliated or managed entities.
Licensed RHQ entities will be eligible for additional benefits and incentives, as applicable, which may be introduced in the future under the RHQ Program.
* Applicable for male dependents who remain students. There is no age restriction for unmarried female dependents.
The RHQ activities are classified into two categories (i) mandatory activities; and (ii) optional activities.
The mandatory RHQ activities are the provision of strategic direction and management functions. RHQ strategic direction functions include: (a) Formulate and monitor the regional strategy, (b) Coordinate strategic alignment, (c) Embed products and/or services in the region, (d) Support acquisitions, mergers and divestments, and (e) Review financial performance. RHQ management functions include: (a) Business planning, (b) Budgeting, (c) Business coordination, (d) Identification of new market opportunities, (e) Monitoring of the regional market, competitors, and operations, (f) Marketing plan for the region, and (g) Operational and financial reporting.
The optional RHQ activities are: (a) Sales and Marketing Support, (b) Human Resources, and Personnel Management, (c) Training Services, (d) Financial Management, Foreign Exchange, and Treasury Centre Services, (e) Compliance and Internal Control, (f) Accounting, (g) Legal, (h) Auditing, (i) Research and Analysis, (j) Advisory Services, (k) Operations Control, (l) Logistics and Supply chain management, (m) International Trading, (n) Technical Support or Engineering Assistance, (o) Network Operations for IT System, (p) Research and Development, (q) Intellectual Property Rights Management, (r) Production Management, and (s) Sourcing of Raw Materials and Parts.
No. The minimum activities that the RHQ must provide are the mandatory RHQ activities – provision of strategic direction and management functions –, in addition to three optional RHQ activities. For the optional RHQ activities, the applicant can select any of the activities mentioned under Q3 above.
Yes. RHQ mandatory activities must commence within six months after the grant of the RHQ License by MISA, and the three RHQ optional activities must commence before the end the first year of receiving the RHQ License.
No. The RHQ License is granted to only perform RHQ activities specified in the Service Manual (mandatory and optional RHQ activities). If the Multinational Group, that holds the RHQ License, wishes to conduct commercial operations and/or other activities than the RHQ activities, the Multinational Group should obtain the required license for such commercial operations and/or activities to be conducted under a different entity than the RHQ.
The RHQ license duration ranges from 1 year to 5 years (based on applicant selection).
The RHQ License has an annual license fees of SAR 2,000 and an additional service fees of SAR 10,000 for the first year only. Additional fee waivers may be applicable for specific tiers of the RHQ License.
The required documents to apply for an RHQ License are:
commercial registration of the applicant company attested at the level of the Saudi embassy at the relevant company
Copies of at least two commercial registrations or commercial licenses of the MNC issued in two different countries (excluding the Kingdom of Saudi Arabia and the country in which the headquarters of the Multinational Group is located) attested at the level of the Saudi Embassy in the respective countries
Copy of the annual audited consolidated financial statements of the last financial year of the applicant, attested at the level of the Saudi Embassy in the respective country.
A completed RHQ License Online Application Form.
There may be additional documents required for specific tiers of the RHQ License.