The Regional Headquarters (RHQ) program, run by the Ministry of Investment, encourages multinational companies to base their Middle East and North Africa headquarters in the Kingdom.
What an RHQ does
It manages and supports the group's subsidiaries and branches across the region — strategy, finance, HR, legal and similar functions. It is not meant to sell directly to customers.
The incentives
The program offers a package of benefits, including long-term tax relief on qualifying RHQ activities and support with visas and residency for staff. Details and conditions are set by the program and the tax rules.
The requirements
- Being part of a multinational group with operations in several countries.
- Establishing the RHQ in the Kingdom within the required timeframe.
- Employing a minimum number of staff and senior executives in the RHQ.
- Meeting ongoing activity and reporting conditions.
Tax and zakat set-up
An RHQ needs a careful structure: which activities qualify, how costs are charged to group companies, and transfer pricing documentation.
Check the current program terms on the Ministry of Investment's website.
