Five years ago, most regional headquarters for global and Middle East businesses were in Dubai. That is changing — and the shift is not just a political narrative. It is showing up in real estate demand, hiring data, and licensing activity.
The HQ Incentive Programme
Saudi Arabia launched the Regional Headquarters (RHQ) programme in 2021 with a straightforward premise: if a multinational wants to do business with the Saudi government, it needs its regional HQ in the Kingdom. The government sweetened the deal with 30-year exemptions from corporate income tax and withholding tax for qualifying entities.
The response has been significant. Over 200 companies have established RHQs in Riyadh since the programme launched — including Bechtel, PwC, Deloitte, Baker McKenzie, and dozens of others.
The Business Case Beyond the Incentives
The incentives are attractive, but they are not the whole story. Saudi Arabia is executing one of the largest infrastructure and economic transformation programmes in the world. NEOM, the Red Sea Project, Diriyah, King Salman Park — the project pipeline runs into trillions of dollars over the next decade. Being in Riyadh means being close to decision-makers and procurement processes.
What This Means for Founders and SMEs
You do not need to be a multinational to benefit from this shift. The RHQ wave brings senior decision-makers, procurement budgets, and supply chain needs to Riyadh. If your business serves those companies — professional services, technology, logistics, HR, marketing, facilities — your market just got a lot more concentrated in one city.
The Practical Implication
If you are building a regional business and not yet present in Riyadh, the window for early positioning is shortening. The companies that get in first build the relationships, the track record, and the reputation that compound over time.