Why Multinationals Are Choosing Riyadh: Inside the Saudi Regional Headquarters Program

Riyadh’s pitch to multinationals has become more direct. Saudi authorities introduced an ultimatum that came into force last year: establish a regional headquarters in Saudi Arabia or face the risk of losing out on lucrative government contracts. The rules also define what “presence” means in practice. Companies must have a regional base in the kingdom with at least 15 employees, including executives overseeing other countries. For many firms, this turns Riyadh from a “nice to have” into an operational requirement tied to public-sector opportunity.

Licensing momentum is also visible in official counts. Saudi Arabia’s investment ministry said more than 600 firms received licences to set up their regional headquarters in the kingdom since 2021. That number signals broad uptake across sectors, even if the practical depth of each move can vary. Some companies are formalising RHQ status and then expanding physical footprints. Others are using the programme to anchor leadership roles and regional management in Riyadh, aligning governance structures with where government and major projects are increasingly concentrated.

What Firms Get in Riyadh, and What Still Worries Them

Professional services firms are using Riyadh to consolidate talent and delivery. PwC relocated its Riyadh office to Laysen Valley into an expanded space designed for collaboration and skills development. The new office is 22,400 square metres and eleven stories tall, and it houses the firm’s full team in Riyadh, including members from Strategy&. PwC also noted it was among the first companies to formalise its Regional Headquarters license in 2023. Alongside client and team spaces, the site includes an Experience Centre, a Forensics Lab, and an expanded PwC Academy for capability building.

Consulting and technology services are also reinforcing Riyadh’s hub narrative. Accenture announced a new Connected Innovation Center in Riyadh and described the move as a platform for co-innovation. The company said its Saudi workforce has grown by around 60% over the last two years. Accenture also said it will collaborate with global technology leaders, including SAP and AWS, to deliver skilling and certification, while leveraging its LearnVantage Academy to train local professionals in AI. KAFD’s development company positioned the district as a home for proximity to leading global and local companies.

Banking shows both progress and hesitation, which helps explain why Riyadh’s rise is still a work in progress. Banks such as Goldman Sachs and Morgan Stanley opened regional headquarters in Riyadh last year, according to the Financial Times. But the same reporting noted that some banks and financial institutions remain reluctant to fully commit due to concerns over the kingdom’s regulatory environment. Dubai’s International Finance Centre was described as an offshore banking hub with a custom-made regulatory framework based on English law, while Saudi’s financial sector is regulated by Sama and the Capital Market Authority. A veteran American investor cited “too many variables,” including sharia law, as a factor affecting comfort levels.

Saudi officials argue the incentive set is wider than licensing alone. The Financial Times reported that Saudi officials point to recent judicial and regulatory reforms and access to big-spending economic diversification projects as reasons foreign firms should set up in Riyadh. Separate commentary on the kingdom’s investment climate described a comprehensive modernization of the regulatory and legislative environment in recent years, including clearer governance structures, faster licensing processes, and improved coordination among authorities. That same source linked regional headquarters policies with business tourism and urban hospitality momentum, reinforced by major international events such as Expo 2030 and the 2034 FIFA World Cup.