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Saudi Arabia RHQ Compliance Hub

Your comprehensive guide to Regional Headquarters licensing requirements. Free tools, expert guides, and everything you need to navigate RHQ compliance for government contracts.

Mandate Status

Active

In effect since January 2024

Contract Threshold

> SAR 1M

Government contracts in scope

Who It Affects

Foreign Groups

Multinationals without a Saudi RHQ

Typical Timeline

3-6 Months

From preparation to operational RHQ

Frequently Asked Questions

Quick answers to common questions about Saudi Arabia RHQ requirements.

What is an RHQ License and who needs one?

A Regional Headquarters (RHQ) License is issued by MISA to a foreign multinational group that manages its regional operations from Saudi Arabia. Since January 2024, Saudi government entities generally cannot award contracts above SAR 1 million to foreign multinational groups without an RHQ in the Kingdom. It is not a general vendor-registration requirement.

My company is registered in Saudi Arabia. Do I need an RHQ to be a government or PIF vendor?

Usually not. The rule targets foreign multinational groups. A Saudi-incorporated company that is not part of a foreign group needs supplier registration and prequalification with the buyer, not an RHQ. If your Saudi entity belongs to a foreign group, the restriction can still apply to the group, so check before bidding.

Are there exceptions to the RHQ requirement?

Yes, but they are tied to the contract, not to the company: contracts of SAR 1 million or less, a single technically compliant offer, a non-RHQ offer at least 25% cheaper than the next best, work executed entirely outside Saudi Arabia, and case-specific exemptions requested by the government entity through Etimad. A pending RHQ application does not by itself create an exception.

How long does it take to get an RHQ License?

Plan for roughly 3 to 6 months from preparation to an operational RHQ, depending on the completeness of documentation and the complexity of the group. After licensing, operations must start within 6 months and staffing targets must be met within the first year.

What are the requirements for an RHQ?

The applicant must be a multinational group with regional affiliates to manage. Commonly cited conditions: a physical office in Saudi Arabia, at least 15 full-time employees within the first year including at least 3 senior executives, genuine regional management functions, and no revenue-generating activity through the RHQ itself.

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