Regional Headquarters Setup: A Fortune 500 Relocates Its MENA HQ to Riyadh

Client Profile

A US-headquartered Fortune 500 engineering group with MENA revenues of $340 million annually, previously operating from a Dubai regional office with a skeleton Saudi entity.

Business Challenge

The Saudi government's requirement that multinationals establish a Regional Headquarters (RHQ) in Riyadh to access government contracts created a critical strategic imperative. The client had 24 months to establish a credible, substance-compliant Riyadh RHQ or risk exclusion from $600 million in anticipated Saudi contract renewals.

Strategic Solution

ILS Consultancy delivered the complete RHQ establishment programme: MISA RHQ licence application, Riyadh Grade A office location and lease structuring, C-suite and senior management relocation support, Saudization workforce planning (targeting 25% Saudi employees in year 1, 40% by year 3), and preparation of the annual RHQ substance report for MISA.

Outcome

The client received its MISA RHQ licence and the associated 10-year corporate income tax holiday. The Riyadh headquarters now employs 180 people (42% Saudi) and has secured SAR 890 million in Saudi government contracts since establishment — a 6x return on the total investment in the RHQ programme.

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