Saudi Arabia announced a strategic move to attract global companies by offering a tax exemption for 30 years to those willing to move their regional headquarters to the kingdom. The tax incentive package encompasses a zero percent rate for corporate income tax and withholding tax related to approved regional headquarters activities.

The tax relief will start when the companies obtain their regional headquarters license, making it an excellent opportunity for those considering a strategic shift to Saudi Arabia. This initiative aligns with Saudi Arabia’s Vision 2030 agenda, which aims to diversify the economy and decrease dependence on oil revenues.

Saudi Arabia is positioning itself as a strategic business hub under the Regional HQ in Riyadh doctrine, managed by the Ministry of Investment and the Royal Commission for Riyadh City. Launched in 2021, this initiative has already licensed over 200 companies. The doctrine is not just about tax incentives but also offers a plethora of advantages and premium support services to facilitate the relocation of global companies.

The tax break is crucial to Saudi Arabia’s efforts to position itself as a global business destination. As part of Vision 2030, the country aims to have 480 global companies establish headquarters by 2030. The Minister of Finance, Mohammed Al Jadaan, emphasized that this new incentive gives businesses visibility and certainty for future planning, encouraging multinational corporations to expand their presence in the region through Saudi Arabia.

Furthermore, the tax concession comes with other benefits, including relaxed Saudization requirements and work permits for the spouses of regional headquarters executives. These additional benefits make Saudi Arabia an even more appealing destination for companies and professionals.

The tax break aligns seamlessly with Saudi Arabia’s long-term economic stability, skilled workforce, strategic location, and strong growth prospects. With an economy that experienced an 8.7 percent growth in the previous year and a projected growth rate of 0.8 percent in the current year, the kingdom provides a favorable environment for companies considering relocation. The robust business activity in the non-oil private sector further underscores the attractiveness of Saudi Arabia as a global business hub.