More Than 780 Companies Establish Regional Headquarters in Saudi Arabia as Samer Choucair Assesses the Impact on Capital Flows
Entrepreneur Samer Choucair said the number of licences issued under Saudi Arabia’s Regional Headquarters Programme has surpassed 700 companies and, according to the latest estimates, exceeded 780 licences, reflecting a structural shift in Riyadh’s position as a regional decision-making centre for multinational companies.
Choucair explained that the programme exceeded its original target of attracting 500 regional headquarters by 2030 several years ahead of schedule, noting that this development is no longer simply a measure of success in attracting companies, but an indicator of institutional capital being redirected toward the Kingdom, particularly across technology, healthcare, financial services, and energy.
He added that the programme’s incentives, led by a 0% corporate income tax rate on qualifying activities for 30 years, alongside withholding-tax exemptions and a ten-year exemption from Saudization requirements, have made Riyadh increasingly attractive to companies targeting government contracts and projects linked to Vision 2030.
More than 780 licences surpass the 500-headquarters target
Samer Choucair noted that the Regional Headquarters Programme was launched in 2021 under the direction of Crown Prince and Prime Minister Mohammed bin Salman, with the objective of making Riyadh the preferred regional headquarters destination for multinational companies operating across the Middle East and North Africa.
He said the Royal Commission for Riyadh City and the Ministry of Investment have overseen implementation of the programme, which has already exceeded its original target of 500 regional headquarters by 2030.
Choucair added that several official statements during 2025 and 2026 confirmed that the number of licensed companies had surpassed 700, while more recent data indicated that the figure had risen above 780 licences.
He emphasized that the speed at which these levels were reached reflects a change in how global companies view Riyadh, from an important regional market to a centre for administrative and investment decision-making across the Middle East and North Africa.
Regional headquarters become a requirement for government contracts
Samer Choucair explained that the programme became significantly more important after Saudi Arabia’s government procurement policy took effect at the beginning of 2024.
He said the policy restricted government entities from contracting with foreign companies that do not have a licensed regional headquarters in the Kingdom for contracts exceeding SAR 1 million, subject to limited exemptions introduced later to preserve spending efficiency.
Choucair noted that this mechanism transformed the incentives offered to companies from a purely tax-related advantage into a strategic necessity for businesses targeting government projects, Public Investment Fund initiatives, and major developments such as NEOM and the Red Sea projects.
He emphasized that companies treating Saudi Arabia as a core market can no longer rely solely on a limited operating presence in Dubai or Abu Dhabi, because access to government contracts and financing linked to Vision 2030 is increasingly tied to a genuine management presence in Riyadh.
Choucair added that this transition has prompted institutional investors to reassess their regional portfolios, with growing interest in assets linked to office infrastructure, professional services, and sectors with high local-content requirements.
Thirty years of tax incentives
Samer Choucair said the Regional Headquarters Programme offers a package of tax incentives that has strengthened Saudi Arabia’s appeal to multinational companies.
He explained that qualifying regional-headquarters income benefits from a 0% corporate income tax rate for 30 years from the date of licensing, alongside a 0% withholding-tax rate on qualifying cross-border payments.
Choucair added that the programme also provides a ten-year exemption from Nitaqat Saudization requirements, allowing companies to bring in international talent during the initial stages of establishing their headquarters without immediately facing localization-ratio constraints.
He emphasized that these incentives have strengthened Saudi Arabia’s ability to compete for multinational companies seeking a regional base combining financial advantages with access to the largest economy in the region.
Strict requirements prevent “paper headquarters”
Samer Choucair noted that the tax incentives are accompanied by substantive economic-presence requirements designed to ensure that new headquarters are genuine operating entities.
He explained that a regional headquarters must employ 15 full-time staff within its first year, including at least three employees at executive level, such as a regional director, vice-president, or equivalent, who must be physically based in the Kingdom, typically in Riyadh.
Choucair added that companies are also required to begin operations within six months of obtaining a licence and undertake at least three mandatory activities, including strategic direction, regional management, and supervision of subsidiaries across the Middle East and North Africa.
He noted that the regional-headquarters entity itself is not permitted to generate direct commercial revenue, with commercial operations remaining separate within other legal entities.
Choucair emphasized that these requirements distinguish the programme from earlier regional models and make it more difficult to establish “paper headquarters” without a substantive corporate presence.
Execution quality matters more than licence numbers
Samer Choucair said institutional investors are increasingly monitoring the conversion rate from licences into fully operational headquarters because the programme’s real value lies in genuine management functions rather than headline numbers alone.
He explained that the gap between the number of licences granted and headquarters that have actually begun operating will remain an important indicator of execution quality over the medium term.
Choucair noted that the programme’s success should therefore be measured not only by how many companies obtain licences, but by the extent to which they transfer decision-making, management, human resources, and other value-added functions into Saudi Arabia.
Technology, healthcare, and energy lead the beneficiaries
Samer Choucair noted that technology, artificial intelligence, healthcare, education, financial services, energy, and the clean-energy transition are among the sectors benefiting most from the expansion of regional headquarters.
He said active government demand for artificial-intelligence solutions and digital infrastructure has placed licensed regional-headquarters companies in a stronger position to compete for contracts.
Projects led by the Public Investment Fund and other major developments have also created a broad value chain across professional services, logistics, and office real estate.
Choucair explained that the programme’s impact extends beyond multinational companies themselves to local businesses capable of providing specialized services to the new headquarters.
Regional headquarters reshape Riyadh’s office market
Samer Choucair noted that the growth in regional headquarters has had a direct impact on Riyadh’s office market.
He said office occupancy rates have remained high, while rents in premium categories have increased as companies relocate management teams to the capital.
Choucair added that these trends have created opportunities for private capital and venture capital to invest in local companies providing support services to regional headquarters, including human resources, technology, and consulting.
He emphasized that capital inflows will not be limited to office property, but will also extend to infrastructure funds, professional services, and domestic technology companies capable of integrating into the supply chains of regional headquarters.
Riyadh shifts from consumer market to decision-making centre
Samer Choucair explained that sovereign funds and global asset managers increasingly view Riyadh as a decision-making centre rather than simply a consumer market.
He said this shift is changing the long-term valuation equation for assets and companies connected to Saudi Arabia.
The presence of hundreds of multinational companies in the capital is increasing demand across a wide range of services, from consulting, legal, and accounting services to technology, human resources, real estate, and logistics.
Choucair added that this multiplier effect can generate new capital flows into domestic businesses operating across sectors that support regional headquarters.
Housing, infrastructure, and execution risks
Samer Choucair emphasized that the programme’s momentum is not without risks and investment considerations that need to be monitored.
He said one of the principal risks is a potential gap between licences issued and headquarters becoming fully operational, alongside increasing pressure on housing and educational infrastructure as executive families relocate to Riyadh.
Choucair added that continued clarification of exemptions related to government procurement rules remains another factor that companies and investors will need to follow.
He explained that continued access to tax exemptions also depends on ongoing compliance with economic-substance requirements, making internal corporate governance critical to preserving the benefits offered under the programme.
Opportunities for specialized local businesses
Samer Choucair noted that the programme is creating significant opportunities for regional small and medium-sized enterprises capable of providing specialized services to new headquarters.
He said the opportunities include compliance, recruitment, localized technology solutions, professional services, real estate, and logistics.
Choucair added that an expanding base of regional headquarters could create a domestic business ecosystem directly linked to the needs of multinational companies, strengthening local content while transferring knowledge and expertise into the Saudi economy.
Toward 1,000 regional headquarters
Samer Choucair expects the Regional Headquarters Programme to continue attracting additional companies in the coming phase, particularly as internal ambitions rise toward 1,000 headquarters and a larger share of Fortune Global 500 companies.
He said continued implementation of Vision 2030 will keep Riyadh in a strong competitive position relative to other regional centres, supported by the size of the domestic economy, government expenditure, and major development projects.
These factors, he explained, increasingly make relocation decisions dependent on substantive economic opportunities rather than tax incentives alone.
Sectors linked to regional headquarters face a structural opportunity
Samer Choucair emphasized that the message for institutional investors, sovereign wealth funds, and asset managers is increasingly clear: allocating capital toward sectors linked to the expansion of regional headquarters could provide structural opportunities for long-term returns.
He identified premium office real estate, professional services, technology, healthcare, and clean energy among the sectors positioned to benefit.
Choucair added that growth in these areas will not depend solely on stronger domestic demand, but also on the expansion of the multinational corporate ecosystem transferring management and decision-making functions into the Kingdom.
Success will be measured by jobs and knowledge transfer
Concluding his assessment, Samer Choucair emphasized that the true success of the Regional Headquarters Programme will not be measured by the number of licences alone.
He said the more important benchmark will be the programme’s ability to create high-quality jobs, transfer knowledge, and connect the Saudi economy more deeply with global value chains.
Choucair added that exceeding the target of 500 headquarters before 2030 demonstrates the strength of Saudi Arabia’s investment appeal, but the next phase will depend on converting this momentum into sustainable economic impact through higher foreign direct investment, localization of senior management roles, and expansion of the professional and technology services base.
Samer Choucair emphasized that the Regional Headquarters Programme represents one of the clearest practical expressions of Vision 2030’s strategy to attract institutional capital and reshape the regional competitive landscape.
He concluded that investors who treat this transformation as a long-term structural opportunity rather than a temporary development will be best positioned to benefit from the next phase.