This service is provided to Multinational Groups wishing to establish their RHQ in the Kingdom as a unit duly established
under the laws of Saudi Arabia for the purpose of supporting, managing, and providing strategic direction to its branches,
subsidiaries and affiliates operating in MENA region.
1. A copy of the applicant’s commercial registration or commercial license, attested at the level of the Saudi Embassy in
the respective country.
2. Copies of at least two commercial registrations or commercial licenses 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.
3. 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.
1. The Multinational Group has minimum presence in two different countries, excluding the Kingdom of Saudi Arabia
and the country in which the headquarter of the Multinational Group is located, either through Subsidiaries or
Branches.
2. The RHQ is established as a separate legal personality in the Kingdom of Saudi Arabia either as a company or as a
registered branch of a foreign company.
3. The RHQ shall not directly conduct commercial operations that generate revenue other than RHQ License activities.
4. The RHQ must commence the mandatory RHQ activities* within six months of issuing the License.
5. The RHQ must commence at least three optional RHQ activities** within one year of issuing the RHQ License.
6. RHQ employees carrying on mandatory RHQ License activities must have the relevant skills and knowledge developed
at the headquarters or another regional headquarters of the Multinational Group, at least 3 employees of which must
be of Executive Director level and Vice-President level.
7. The RHQ must employ at least 15 full time employees deployed in the conduct of RHQ activities within one year
of issuing the RHQ License (including the senior level executives mentioned in point 6 above).
8. The RHQ License is subject to cancelation by the Ministry of Investment in any of the following situations:
– Failure to commence the mandatory or optional RHQ License activities, or hiring the minimum number of
employees, within the stipulated time periods.
– The cessation of any mandatory RHQ activities or a minimum of three optional RHQ activities.
– The cessation of satisfying any of the RHQ License conditions by the RHQ or the Multinational Group.
– Violation of any licensing regulation established by MISA constituting ‘Grounds for Cancellation’.
* The mandatory RHQ activities are the provision of strategic direction and management functions. RHQ strategic direction
functions include: (a) Formulate and monitor the regional strategy, (b) Coordinate strategic alignment, (c) Embed products
and/or services in the region, (d) Support acquisitions, mergers and divestments, and (e) Review financial performance.
RHQ management functions include: (a) Business planning, (b) Budgeting, (c) Business coordination, (d) Identification of
new market opportunities, (e) Monitoring of the regional market, competitors, and operations, (f) Marketing plan for the
region, and (g) Operational and financial reporting.
** The optional RHQ activities are: (a) Sales and Marketing Support, (b) Human Resources, and Personnel Management,
(c) Training Services, (d) Financial Management, Foreign Exchange, and Treasury Centre Services, (e) Compliance and
Internal Control, (f) Accounting, (g) Legal, (h) Auditing, (i) Research and Analysis, (j) Advisory Services, (k) Operations
Control, (I) Logistics and Supply chain management, (m) International Trading, (n) Technical Support or Engineering
Assistance, (o) Network Operations for IT System, (p) Research and Development, (q) Intellectual Property Rights
Management, (r) Production Management, and (s) Sourcing of Raw Materials and Parts.
