Top 5 reasons Why Global Companies Are Moving Their Regional HQs to Riyadh

As Riyadh cements its place as a fast-growing G20 capital, global firms are increasingly relocating their regional headquarters (RHQs) to the Saudi capital. The Kingdom’s 2024 legal requirement, that government and state-linked entities only engage with companies operating RHQs in Saudi Arabia, has accelerated this trend. Under major national transformation efforts, Riyadh is rapidly evolving into a world-class business and lifestyle hub, powered by giga-projects, modern infrastructure, and progressive economic policy.

This blog explores the top 5 reasons why multinational companies choose Riyadh for their RHQs in 2025, and why your company should, too.

1. Clear Legal Mandate & Strategic Market Access

• Mandatory RHQ for government contracts: Since 1 January 2024, Saudi ministries and state-owned enterprises require MNCs to establish RHQs in Riyadh to remain eligible for valuable contracts.
• Rapid uptake: By early 2025, 571 international firms have secured RHQ licenses, surpassing the 2030 goal by a full five years.
• Direct Vision 2030 access: Companies with RHQs can bid for major contracts across transport, tourism, health, education, and renewable energy, which are restricted to RHQ-licensed firms only.

2. Unmatched Tax & Workforce Incentives

• 30-year tax holiday: Approved RHQs enjoy 0 % corporate tax and withholding tax on eligible activities for three decades.
• Saudisation and visa flexibility: RHQs receive a 10-year exemption from national hiring quotas. Companies can also obtain unlimited work visas for staff and dependents, who may be employed under the Ajeer programme.
• Fast-track support: RHQs are prioritised for MISA licensing, GRO approvals, and regulatory processing through ZATCA and other relevant authorities, ensuring smooth entry and faster setup timelines.

3. World-Class Infrastructure & Ecosystem

• Riyadh Metro: A 176 km, driverless network with 85 stations, fully operational since December 2024. It serves over 3.6 million daily passengers, reducing car usage by 250,000 trips/day.
• King Salman International Airport: Scheduled to open by 2030, featuring 6 runways, handling up to 120 million passengers annually, and creating 150,000 jobs.
• Mega-projects:
  • King Salman Park: A 16.6 km² green space, opening in 2026.
  • Sports Boulevard: Launched in 2019, $23 billion linear park; phase 1 opened Feb 2025 with sports complexes & major pedestrian routes.
  • Qiddiya Entertainment City: $9.8 billion entertainment & sports hub hosting an upcoming Formula 1-grade circuit, now under construction for 2027.
  • Mukaab (New Murabba District): World’s largest cubic building, 2 million ft² floor space, 104,000 residences, 9,000 hotel rooms, shaping a 7-square-mile downtown by 2030.
  • Expo 2030 Riyadh: A 6 million m² Expo site designed to host 40 million+ visitors (Oct 2030–Mar 2031), evolving into a legacy “global village”.

4. Access to Regional Talent & Networked Ecosystem

• Skilled workforce pipeline: Riyadh offers access to a highly educated, young, and tech-savvy talent pool. The city is home to top-tier international schools, bilingual universities, and graduates in STEM, business, and digital disciplines.
• Innovation zones:
  • Digital City (ITCC) is a 470-acre government-led development that hosts tech firms, digital agencies, and cloud providers.
  • Riyadh Business Front serves as a destination for regional headquarters, with flexible co-working spaces, innovation hubs, and networking events.
• RHQ cluster effect: The growing presence of over 571 RHQs from 39+ countries has created a dynamic environment for peer collaboration, joint ventures, and cross-border partnerships.

5. Sustainable MENA Growth Platform

• Geographic hub advantage: Strategically located, Riyadh provides direct access to over 40 markets in the GCC, Levant, and North Africa. For companies managing distributed operations across the region, Riyadh offers a lower-cost, centralised base with faster connectivity than other Gulf cities.
  • Economic resilience: With a 53 % non-oil GDP share, robust sovereign-wealth reserves, and strong fiscal policy, Saudi Arabia offers a highly stable environment for long-term investment and expansion.
  • First-mover project access: Early RHQs can access Expo 2030 contracts, legacy infrastructure deals, public sector partnerships, and giga-project collaborations.

How to Launch Your RHQ in Riyadh (Smoothly & Strategically)

Establishing an RHQ involves legal setup, MISA licensing, economic substance compliance, visa/GRO coordination, talent recruitment, and office deployment. TASC streamlines all steps.

TASC: Your Strategic RHQ Partner

With 18+ years across the GCC, TASC enables:

• Comprehensive RHQ licensing & entity formation
• Legal, GRO, immigration & tax compliance
• Workforce strategy, nationalisation guidance, and talent acquisition

Your RHQ deserves more than a setup; it needs a strategy.

Contact us today! To build a high-impact presence in Riyadh.

Powering RHQs Remotely with TASC 360

For companies pursuing leaner structure or hybrid regional coverage, TASC 360 offers a flexible, remote-first workforce model that enables you to:

• Build remote, borderless teams across IT, customer service, finance, and HR
• Maintain employment, tax, and visa compliance through TASC’s in-house legal and payroll specialists
• Scale on-demand without heavy infrastructure investments
• Source and deploy talent rapidly using AI-enabled hiring platforms

TASC 360 is ideal for firms needing a Saudi presence while maintaining operational control across multiple markets. For instance, a Gulf-based SaaS company can manage service delivery through a remote team based in Riyadh, while its HQ focuses on strategy. Similarly, legal, advisory, or consulting firms can use the model to set up agile pods for project-based execution.
Move fast, Hire smart, Stay compliant; Book your consultation today!

Want deeper insight into RHQ incentives, sector use cases, and long-term benefits? read our blog: 5 Benefits of Choosing Riyadh for Your RHQ