Saudi Arabia eases regional HQ rule, allows exemptions for foreign firms bidding on state projects

Saudi Arabia has revised its regional headquarters (RHQ) policy, introducing specific exemptions that allow foreign companies without a Saudi-based regional HQ to bid on government projects.

The adjustment marks a notable shift in implementation while maintaining the broader objectives of the Kingdom’s economic transformation strategy under Saudi Vision 2030.

Balancing efficiency with long-term goals

The original RHQ rule required multinational firms seeking government contracts to establish their regional headquarters in the Kingdom. The move was designed to boost foreign direct investment, create high-value jobs, and position Riyadh as a regional business hub.

Under the revised framework, exemptions may be granted in certain cases to ensure project efficiency, competitiveness, and timely delivery of strategic initiatives. The update signals policy flexibility while preserving the long-term relocation push central to Vision 2030.

Riyadh’s growing appeal

The RHQ program has already delivered significant results. Authorities report that more than 600 multinational companies have established regional headquarters in Riyadh, reinforcing the capital’s emergence as a leading corporate center in the Middle East.

The policy recalibration sends a clear message to global investors: the Kingdom remains committed to structural economic reform but is prepared to adapt implementation mechanisms to safeguard growth momentum and national project timelines.

For international firms, the change offers a more nuanced operating landscape, one that combines opportunity, regulatory evolution, and sustained strategic ambition.