Since 2024, Saudi government bodies cannot contract with foreign companies that have no regional headquarters in Saudi Arabia, with limited exemptions. If you sell to Saudi government entities, this rule may decide whether you can bid. We do not quote incentives or staffing numbers until MISA confirms them.
By Imran Mirza, Founder & CEO, Xillion Group UAE. Born and raised in the UAE, with 18+ years of professional working experience, including nearly seven years at Barclays and ADCB and 12 years in UAE business setup. Last reviewed 29 October 2026.
The rule applies to government contracting, not to every business. Reports say a case-by-case exemption framework exists, with the Etimad service in use since November 2025, and exemptions where competition is limited or bids are at least 25% cheaper, and projects under SAR 1 million exempt. These come from press reports, so Saudi counsel must verify them on official pages. RHQ criteria, fees and tax treatment are quote on request until confirmed.
Xillion Group UAE is a business setup consultancy. It is not a Saudi law firm or a government body and does not decide RHQ approval. Saudi legal advice is coordinated through independent licensed external professional partners, including Saudi counsel, who are not Xillion employees. MISA and other Saudi authorities decide approvals.
Xillion Group UAE is a consultancy. It is not a licensing authority, a bank or a law firm, and approvals are decided by the authority. This page is general information, not legal, tax or investment advice, and nothing here is a guarantee.
Your case may need more or less. We confirm the exact list with the authority or partner before you spend time on it.
| Item | What we can say |
|---|---|
| Government contract rule | Since 2024 government bodies cannot contract with foreign firms without a Saudi regional HQ, with a reported case-by-case exemption framework. |
| RHQ licences issued | Press reports give 34 in Q2 2025 and 31 in Q3 2025. These are small numbers and are press figures. |
| Staffing and tax incentives | Not quoted. Figures seen online are unverified. |
| Fees and timeline | Quote on request. We will not guess. |
| Guarantee | None. |
No. The reported rule is about contracting with Saudi government bodies. Other business may not need one. Saudi counsel confirms.
Press reports describe a case-by-case framework with exemptions for limited competition, bids at least 25% cheaper, and projects under SAR 1 million. Verify on official pages.
Quote on request. We do not publish figures we cannot verify.
Figures online vary and we have not verified them. Ask Saudi counsel and MISA.
For Saudi government contracts, the reported rule says a Saudi regional HQ is needed unless an exemption applies. Counsel confirms for your case.
We coordinate and prepare documents. Saudi counsel advises on the law.
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These are press sources. We have not read the MISA programme pages for this version, so Saudi counsel must verify the criteria before you act.
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