Saudi Arabia has announced that it will offer a "new package of tax incentives for 30 years" to support a program aimed at attracting regional headquarters of global companies, which includes exemption from income tax. The Saudi program to attract regional headquarters of global companies is a joint initiative between the Ministry of Investment and the Royal Commission for Riyadh City, aimed at encouraging global companies to establish their regional headquarters in the Kingdom and make it the preferred choice for these companies in the Middle East and North Africa by providing a range of benefits and exceptional support services.
The tax exemption package for regional headquarters for 30 years, announced by the Ministry of Investment in coordination with the Ministry of Finance and the Zakat, Tax, and Customs Authority, includes a zero percent rate for both income tax on regional headquarters entities and withholding tax for approved regional headquarters activities. Global companies will benefit from this package of tax exemptions from the date of issuance of their regional headquarters license.
Commenting on this move, Engineer Khalid Al-Falih, Minister of Investment, stated that granting tax incentives to regional headquarters of global companies in the Kingdom is an important motivator to make the Kingdom a primary hub for these headquarters in the region, in addition to other advantages granted to these companies, such as flexible Saudization requirements and the attraction of executives and outstanding talents to work in regional headquarters.
Al-Falih noted that the Kingdom's economic stability, the presence of distinguished competencies and expertise, in addition to its strategic location and strong growth prospects, have contributed to attracting over 200 companies to the program. Many executives and professionals from around the world find in the Kingdom, compared to other places in the region and the world, an attractive and motivating destination that supports their career advancement.
For his part, Mohammed Al-Jadaan, Minister of Finance, stated that "the new tax exemptions granted on activities of the regional headquarters will provide these regional headquarters of global companies in the Kingdom with greater clarity and stability, enhancing their capabilities for future planning related to expanding their operations in the region, starting from the Kingdom, while also participating in the development and transformation journey we are witnessing in the Kingdom."
Al-Jadaan added: "We look forward to welcoming more global companies to participate in the projects taking place across all sectors, including mega projects, and our preparations to host major events such as the 2029 Winter Asian Games and the 2030 Expo."