The Ministry of Investment of Saudi Arabia (“MISA”) and the Royal Commission for Riyadh City have launched a joint initiative to encourage multinational groups (“MNGs”) to set up their regional headquarters (“RHQs”) in the Kingdom of Saudi Arabia (“KSA”). The initiative is in line with KSA’s Vision 2030, which generally aims to strengthen the KSA’s strategic position as an investment hub in the Middle East.
KSA Cabinet Decision 377/1444 (“Decision”) regulates contracting between KSA governmental agencies (“KSA Agencies”) and MNGs with RHQs outside the KSA. An MNG is considered not to have an RHQ in the KSA if it: (a) has an RHQ in the Middle East and North Africa region; and (b) is in MISA’s list of MNGs without RHQs in the KSA.
