Riyadh: A Strategic Base for Regional Headquarters in 2025

Riyadh is no longer solely the political capital of Saudi Arabia; it has rapidly emerged as the economic nerve center for multinational companies seeking a strategic gateway into the Middle East and North Africa. In 2025 alone, more than 540 RHQ licenses were issued, highlighting the confidence that global investors are placing in the Kingdom’s transformation.

This momentum is not limited to regulatory alignment; it reflects a broader economic shift powered by policy reforms, infrastructure investments, and visionary national initiatives. For foreign investors, now is the optimal time to establish a long-term presence in this thriving market.’

5 Reasons Why Riyadh Is the Ideal Location for Your Regional Headquarters:

1. Central Location with Unmatched Regional Reach

Positioned at the geographic heart of the GCC, Riyadh offers unparalleled access to over 40 markets across the Gulf, North Africa, and the Eastern Mediterranean. For companies managing regional operations, a Riyadh-based RHQ ensures operational efficiency and reduced overhead

2. Access to a Growing, Diversified Economy

Saudi Arabia remains the largest economy in the Arab world, and its capital is at the forefront of diversification. Backed by Major economic development, Riyadh is home to transformative projects such as:

• Sports Boulevard
• Digital City
• Riyadh Business Front

These initiatives offer early investors access to premium infrastructure and ecosystem advantages. Entry during this growth phase allows companies to secure long-term positioning in a relatively unsaturated market.

3. Full Foreign Ownership and Streamlined Regulatory Framework

Under Vision 2030, foreign investors can fully own their RHQ entities without the need for a local partner. The Ministry of Investment’s RHQ program delivers:

• Accelerated digital registration
• Comprehensive inter-governmental support
• Legal and fiscal predictability for foreign stakeholders

These reforms provide clarity, speed, and confidence to international businesses navigating market entry.

4. Preferred Access to Strategic National Projects

An RHQ license grants direct eligibility to bid for national contracts and participate in high-profile government-led initiatives. These include:

• Green Riyadh
• King Salman Energy Park
• Digital Innovation Center
• Tech Oasis and Innovation Hubs

This level of engagement strengthens investor-government collaboration and unlocks high-value growth channels.

5. Economic Upswing and Market Timing Advantage

Saudi Arabia’s economic indicators point to accelerated growth. A young, tech-savvy population and increased demand for digital services signal a maturing market ecosystem.

Advantages for early movers include:

• Streamlined setup procedures
• Lower entry competition
• Stronger engagement with national stakeholders
• Early access to strategic contracts and national projects

Positioning your RHQ in Riyadh today places your company ahead of the competition.

6. Competitive Tax Regime for RHQ License Holders

The Saudi government offers RHQ investors significant fiscal incentives:

• Exemption from corporate income tax
• Zero VAT in export-linked activities
• Reduced licensing and operational fees
• Free repatriation of profits in foreign currency

These tax advantages create a commercially attractive environment for global firms establishing long-term operations.

Investment Opportunities Across High-Growth Sectors

Riyadh is rapidly becoming a magnet for innovation-driven sectors. Areas attracting both capital and talent include:

• Smart City Solutions & IoT: Enabled by the Smart Riyadh strategy
• Artificial Intelligence: Led by SDAIA’s cross-sector AI initiatives
• Cloud Computing & Data Centers: Supported by investments from Google Cloud and Oracle
• Cybersecurity: Increasing demand for financial services and government entities
• SaaS & Enterprise Tech: Accelerated through public-private innovation hubs like Digital Valley

Establishing an RHQ in Saudi Arabia: Efficient and Transparent

Recent reforms by the Ministry of Investment, ZATCA, and HRSD have streamlined the RHQ licensing process. Key steps include:

• Registering a wholly foreign-owned RHQ under the MISA framework
• Structuring your workforce in line with Saudization and labor laws
• Complying with corporate governance and regulatory mandates

If you’re interested to learn more about establishing your RHQ, you can read our blog How to Start a Regional Head Quarter (RHQ) in Saudi Arabia: A Basic Guide

TASC Outsourcing: Your Strategic Partner for RHQ Success

With over 17 years of experience in workforce and business solutions, TASC Outsourcing supports multinational companies in navigating Saudi Arabia’s business landscape. Our RHQ services include:

• Turnkey company formation and MISA licensing
• GRO and visa processing
• Labor law and Saudization advisory
• Agile staffing across 40+ job categories
• Scalable HR and talent management solutions

If you're interested to learn more about setting your RHQ  you can also download our business Setup Guidebook prepared by the TASC team, for a comprehensive and practical overview of regional headquarters licensing and setup in Saudi Arabia.

Contact us today and let our TASC experts take you through the steps of building your regional headquarters in Riyadh.