The KSA recently launched an initiative to encourage foreign companies to establish their regional headquarters (RHQs) in the country or relocate existing RHQs there.
Once the related law comes into force on 1 January 2024, foreign companies with RHQs in the KSA will not be permitted to contract with KSA governmental agencies except in certain limited circumstances.
To have an RHQ in the KSA, a company will need to obtain an RHQ licence from the KSA’s Ministry of Investment. And once licensed, the RSA will need to (among other things) carry out certain mandatory strategy and management-related activities and employ at least 15 full-time employees.
Our Dubai Team breaks it all down in the document available here.