{"id":1624,"date":"2023-06-01T12:01:00","date_gmt":"2023-06-01T12:01:00","guid":{"rendered":"https:\/\/thelocaleyes.com\/?p=1624"},"modified":"2023-06-01T12:01:00","modified_gmt":"2023-06-01T12:01:00","slug":"%d8%a7%d9%84%d9%85%d9%82%d8%b1%d9%91%d8%a7%d8%aa-%d8%a7%d9%84%d8%a5%d9%82%d9%84%d9%8a%d9%85%d9%8a%d8%a9-%d9%81%d9%8a-%d8%a7%d9%84%d9%85%d9%85%d9%84%d9%83%d8%a9-%d8%a7%d9%84%d8%b9%d8%b1%d8%a8%d9%8a","status":"publish","type":"post","link":"https:\/\/thelocaleyes.com\/ar\/%d8%a7%d9%84%d9%85%d9%82%d8%b1%d9%91%d8%a7%d8%aa-%d8%a7%d9%84%d8%a5%d9%82%d9%84%d9%8a%d9%85%d9%8a%d8%a9-%d9%81%d9%8a-%d8%a7%d9%84%d9%85%d9%85%d9%84%d9%83%d8%a9-%d8%a7%d9%84%d8%b9%d8%b1%d8%a8%d9%8a\/","title":{"rendered":"\u0627\u0644\u0645\u0642\u0631\u0651\u0627\u062a \u0627\u0644\u0625\u0642\u0644\u064a\u0645\u064a\u0629 \u0641\u064a \u0627\u0644\u0645\u0645\u0644\u0643\u0629 \u0627\u0644\u0639\u0631\u0628\u064a\u0629 \u0627\u0644\u0633\u0639\u0648\u062f\u064a\u0629"},"content":{"rendered":"

Regional Headquarters Program<\/strong><\/h2>\n

About <\/strong>Regional Headquarters Program<\/strong><\/h4>\n

The Regional Headquarters (RHQ) Program has been introduced to increase foreign investment and bring diversification in the Saudi economy, aligned with the Vision 2030 framework. It is developed jointly by the Ministry of Investment Saudi Arabia (MISA) under its initiative \u2018Invest Saudi\u2019 and the Royal Commission for Riyadh City (RCRC) with an aim to encourage Multinational Companies (MNCs) to establish their regional headquarters within Saudi Arabia. As a significant development strategy of the Kingdom of Saudi Arabia’s government, the RHQ Program plays a crucial role in transforming Riyadh into a \u201cleading global destination.\u201d[1]<\/sup><\/a><\/p>\n

As defined by MISA, an RHQ in the Kingdom of Saudi Arabia is:<\/p>\n

\u201ca unit of a multinational group, duly established under the laws of the Kingdom of Saudi Arabia<\/em>,\u00a0for the purpose of supporting, managing, and providing strategic direction to its branches, subsidiaries and affiliates operating in the Middle East North Africa region.\u201d<\/em><\/p>\n

Invest Saudi <\/strong><\/p>\n

As the country\u2019s unified investment brand, Invest Saudi aims to facilitate private sector businesses, international, and domestic investors by effectively communicating investment opportunities in the Kingdom. It operates under the supervision of MISA and promotes closer collaboration and coordination among various ministries, government authorities, and the private sector. Invest Saudi contributes to promote an expanding range of investment and business opportunities in the Kingdom to foster sustainable economic growth at the national level.<\/p>\n

Support Provision for setting up your RHQ in the Kingdom<\/em><\/p>\n

Relocation Services\u00a0<\/em><\/p>\n

\u2022\u00a0 Temporary Office Space<\/p>\n

\u2022\u00a0 Apartments or Villas<\/p>\n

\u2022\u00a0 Local Recruitment<\/p>\n

\u2022\u00a0 Arrival Essentials<\/p>\n

Concierge Services<\/em><\/p>\n

\u2022\u00a0 Reservations<\/p>\n

\u2022\u00a0 Event Organizers<\/p>\n

\u2022\u00a0 Sport & Fitness<\/p>\n

\u2022\u00a0 Personal Assistant<\/p>\n

Facilitation Services<\/em><\/p>\n

\u2022\u00a0 Staffing<\/p>\n

\u2022\u00a0 Business Setup<\/p>\n

\u2022\u00a0 Home Labor Contractors<\/p>\n

Professional Services<\/em><\/p>\n

\u2022\u00a0 Tax Consultancy<\/p>\n

\u2022\u00a0 GRO Services<\/p>\n

\u2022\u00a0 Opening Bank Accounts<\/p>\n

Exclusive Discounts<\/em><\/p>\n

\u2022\u00a0 Airlines<\/p>\n

\u2022\u00a0 Office<\/p>\n

\u2022\u00a0 Accommodation<\/p>\n

\u2022\u00a0 Schools<\/p>\n

Becoming Part of the RHQ Program<\/strong><\/p>\n

Before the establishment of the Regional Headquarters in Saudi Arabia, an applicant is required to obtain an RHQ license from MISA. Minimum <\/em>eligibility condition for an RHQ License is:<\/p>\n

\u2022\u00a0 it must have at least two subsidiary companies or branches functioning in two different countries, except for the Kingdom of Saudi Arabia and the investor’s country of incorporation (i.e., the main headquarters).<\/p>\n

Criteria for RHQ<\/em><\/p>\n

\u2022\u00a0 The RHQ of the Multinational group covered in this license shall operate as a registered foreign company or branch in Saudi Arabia.<\/p>\n

\u2022\u00a0 An RHQ has a separate legal identity in the Kingdom of Saudi Arabia either as a subsidiary or as a registered branch office of a Multinational Company.<\/p>\n

\u2022\u00a0 It has to maintain a physical office presence and serve as a central hub of administrative authority for the respective region.<\/p>\n

\u2022\u00a0 An RHQ is not to engage in any commercial activity that generates revenue (all commercial activities will be conducted by the company affiliates that hold a Service License, Commercial License, Industrial License, or any respective License for the commercial operations from MISA).<\/p>\n

\u2022\u00a0 Entities seeking to retain their RHQ license must select their business activities to be conducted in Saudi Arabia based on the following classification: Mandatory Activities and Optional Activities. <\/em>An RHQ is required to engage in Mandatory Activities, specifically the “provision of strategic direction and management functions,” along with a choice of three Optional Activities as a minimum requirement. Following are the activities:<\/p>\n

Mandatory Activities<\/em> (all are required)<\/em>
\nProvision of strategic direction<\/em>:<\/p>\n

\u2022\u00a0 Formulate and monitor the regional strategy,<\/p>\n

\u2022\u00a0 Coordinate strategic alignment,<\/p>\n

\u2022\u00a0 Embed products and\/or services in the region,<\/p>\n

\u2022\u00a0 Support acquisitions, mergers, and divestments, and<\/p>\n

\u2022\u00a0 Review financial performance.<\/p>\n

Provision of management functions<\/em><\/p>\n

\u2022\u00a0 Business planning,<\/p>\n

\u2022\u00a0 Budgeting,<\/p>\n

\u2022\u00a0 Business coordination,<\/p>\n

\u2022\u00a0 Identification of new market opportunities,<\/p>\n

\u2022\u00a0 Monitoring of the regional market, competitors, and operations,<\/p>\n

\u2022\u00a0 Marketing plan for the region, and<\/p>\n

\u2022\u00a0 Operational and financial reporting.<\/p>\n

Optional Activities (three are required)<\/em><\/p>\n

\u2022\u00a0 Sales and Marketing Support,<\/p>\n

\u2022\u00a0 Human Resources, and Personnel Management,<\/p>\n

\u2022\u00a0 Training Services,<\/p>\n

\u2022\u00a0 Financial Management, Foreign Exchange, and Treasury Centre Services<\/p>\n

\u2022\u00a0 Compliance and Internal Control,<\/p>\n

\u2022\u00a0 Accounting,<\/p>\n

\u2022\u00a0 Legal,<\/p>\n

\u2022\u00a0 Auditing,<\/p>\n

\u2022\u00a0 Research and Analysis,<\/p>\n

\u2022\u00a0 Advisory Services,<\/p>\n

\u2022\u00a0 Operations Control,<\/p>\n

\u2022\u00a0 Logistics and Supply chain management,<\/p>\n

\u2022\u00a0 International Trading,<\/p>\n

\u2022\u00a0 Technical Support or Engineering Assistance,<\/p>\n

\u2022\u00a0 Network Operations for IT System,<\/p>\n

\u2022\u00a0 Research and Development,<\/p>\n

\u2022\u00a0 Intellectual Property Rights Management,<\/p>\n

\u2022\u00a0 Production Management,<\/p>\n

\u2022\u00a0 Sourcing of Raw Materials and Parts.<\/p>\n

\u2022\u00a0 The RHQ must have 15 full-time employees within the first year.<\/p>\n

\u2022\u00a0 At least 3 mandatory RHQ activities\u2019 employees must be of a Corporate Executives level (such as Regional MD, Executive VP, Vice-President, etc.)<\/p>\n

Timeframe<\/em><\/p>\n

The Multinational Group must start RHQ operations within six months after the license is granted, and it should establish three optional activities chosen in the first year of the license operation.<\/p>\n

RHQ License fee & Validity<\/em><\/p>\n

The RHQ license entails an annual fee<\/em> of SAR 2,000 <\/strong>and an initial one-time service fee of SAR 10,000<\/strong> (limited to the first year). Certain application tiers may qualify for additional fee waivers. The RHQ license duration ranges from 1 year to 5 years (based on applicant selection).<\/p>\n

Required Documents
\n<\/em><\/p>\n

\u2022\u00a0 Commercial registration of the applicant company attested at the level of the Saudi embassy at the relevant company<\/p>\n

\u2022\u00a0 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<\/p>\n

\u2022\u00a0 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.<\/p>\n

\u2022\u00a0 A completed RHQ License Online Application Form.<\/p>\n

Contracting with Government Entities<\/strong><\/p>\n

On December 27, 2022, the Council of Ministers in Saudi Arabia issued a resolution endorsing the Regulations governing government agencies’ contracting procedures with entities and their related parties that lack an RHQ in Saudi Arabia.<\/p>\n

Effective from January 1, 2024,<\/strong> these Regulations prohibit<\/em> all government agencies from entering into contracts or procuring goods and services from companies without an RHQ in Saudi Arabia and their affiliated entities.<\/p>\n

Exceptions<\/em>[2]<\/sup><\/a><\/p>\n

In the following cases, government agencies (ministries, governmental entities, public bodies, departments, institutions, and independent agencies) may enter contract <\/strong>with MNCs or their affiliated entities even without having an RHQ established in Saudi Arabia:<\/p>\n

\u2022\u00a0 works and procurements with an estimated value of less than SAR 1 million (such threshold may be amended from time to time)<\/p>\n

\u2022\u00a0 the works and procurements are to be executed outside the KSA<\/p>\n

MNCs or their related parties that do not have an RHQ in Saudi Arabia are allowed to participate in public tenders<\/strong> initiated by Government Agencies. However, these bids will only be accepted under the following circumstances:<\/p>\n

\u2022\u00a0 where there is only one technically acceptable offer<\/p>\n

\u2022\u00a0 if, an offer submitted by a company without its RHQ in the KSA, is the best offer from a technical perspective and has a value of less than 25% or more than the value of the second-best offer received by that government agency<\/p>\n

In limited tender situations, Government Agencies have the authority to invite MNCs or their related parties that do not have an RHQ in Saudi Arabia to participate in limited tenders<\/strong>. This invitation can occur in the following cases:<\/p>\n

\u2022\u00a0 where there is only one qualified bidder, excluding companies or related parties without an RHQ in Saudi Arabia<\/p>\n

\u2022\u00a0 an emergency situation that can only be dealt with by inviting or directly contracting with companies that do not have a RHQ in the Kingdom. (The regulations define an emergency situation as a situation in which a threat to public safety, public security or public health is serious and unexpected or in which a breach threatens loss of life or property)<\/p>\n

Government Agencies have the authority to invite MNCs or their related parties to participate in direct purchases<\/strong>, but only if either of the following two conditions are met:<\/p>\n

\u2022\u00a0 the works or procurements in question can only be serviced by companies without an RHQ in the Kingdom<\/p>\n

\u2022\u00a0 In cases of emergency where addressing the situation requires direct purchases from the company which does not have its RHQ in Saudi Arabia<\/p>\n

Incentives for the Companies<\/strong><\/p>\n

As part of the RHQ program, MNCs will receive significant incentives for joining this remarkable economic initiative and relocating their regional headquarters to Saudi Arabia, the largest economy in the MENA region.<\/p>\n

In addition to the opportunity to participate in government tenders, the RHQ program provides the following incentives to MNCs:<\/p>\n

\u2022\u00a0 Ten-year exemption from Saudization requirements.<\/p>\n

\u2022\u00a0 Visas for employment in professions that are limited to Saudi nationals are available for RHQ employees.<\/p>\n

\u2022\u00a0 The RHQ entity has no exemptions on work visa limits for its employees.<\/p>\n

\u2022\u00a0 Work permits for spouses of RHQ employees through Ajeer Program.<\/p>\n

\u2022\u00a0 The age limit for male dependents of RHQ employees to qualify for residency has been extended up to 25 years old (this policy applies to male dependents who are still enrolled as students, while unmarried female dependents face no age restrictions).<\/p>\n

\u2022\u00a0 Waiver of Professional Accreditation requirements in the Kingdom if they possess valid accreditation from their country of origin.<\/p>\n

\u2022\u00a0 After the initial year, RHQ participants are granted an exemption from paying MISA subscription fees for accessing MISA investor service centres.<\/p>\n

\u2022 RHQ participants can avail themselves of MIZA’s* comprehensive services (business, personal and concierge services) at discounted rates and receive preferential treatment.<\/p>\n

*MIZA is a value-added service offering program by MISA, that emerged to enrich the experience of its partners in the Kingdom by offering management, legal, personal, operational, <\/em>corporate, financial, human resources, and logistics services.<\/em><\/span><\/p>\n

\u00a0 \u2022\u00a0 Special Economic Zones (SEZs)<\/strong><\/p>\n

The newly established Special Economic Zones, namely King Abdullah Economic City (KAEC) SEZ, Ras Al-Khair SEZ, Jazan SEZ, and Cloud Computing SEZ, are strategically located throughout the country. Expanding upon previous efforts to enhance Saudi Arabia’s position as a leading global investment destination, these SEZs are designed to diversify the economy and enhance competitiveness offering infrastructure and logistics support and advanced connectivity to the businesses.<\/p>\n

Establishing RHQ in SEZ will facilitate MNCs as 13%[3]<\/sup><\/a> of global trade occurs through the Red Sea, and these SEZs offer seamless connectivity to global supply chains. Moreover, by leveraging the already established and top-notch infrastructure in these zones, along with the world\u2019s most efficient port (as recognized by the World Bank in 2022), your company can easily tap into this strategic location for enhancing business operations.<\/p>\n

Dependent on zone and sector, investors gain access to a range of advantages\u00a0such as withholding and value-added tax exemptions, income tax reductions, deferred custom duties on goods entered the SEZ, flexible and supportive regulations around foreign talent, and operational fees waiver for employees and their families within SEZ.<\/p>\n

<\/a><\/p>\n

Opportunity for Multinational Companies to Flourish in Saudi Arabia<\/strong><\/p>\n

The present moment presents a prime opportunity for MNCs to actively engage in Saudi Vision 2030 and tap into the diverse opportunities offered by the largest economy and oil exporting nation in the region. In order to enhance competitiveness in securing government contracts, bids, and projects, the RHQ program strongly encourages MNCs to consider relocating their regional headquarters from locations like Dubai and other GCC countries to Saudi Arabia.<\/p>\n

At LocalEyes<\/strong>, we possess the needed resources and capabilities to provide comprehensive assistance by developing the business case, supporting with executive research and manpower, providing our comprehensive Local Content solutions which play key role in Vision 2030\u2019s Diversification of Economy, coordinating and consulting with key stakeholders (MISA and other entities of relevance) for attaining the RHQ License and enabling you to establish and operate your Regional Headquarters in the Kingdom of opportunities. Our in-depth understanding of the programs and policies as well as close contact with the relevant authorities enable us to provide services from opportunity development to project realization.<\/p>\n

For any inquiries or assistance in application for the RHQ License, please feel free to reach out to our dedicated team based in Riyadh, Saudi Arabia. We are eager to provide you with our value-added services which support the RHQ Program.<\/p>\n

<\/a><\/p>\n

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