Saudi Arabia: Additional Guidelines Announced for Regional Headquarters Program

The government of Saudi Arabia has published guidelines announcing exemptions for when businesses without regional headquarters in Saudi Arabia can still contract with government agencies once the Regional Headquarters Program goes into effect on January 1, 2024. These exemptions include when there is a lack of alternatives for the required services or goods; when deals or purchases are entirely carried out outside of Saudi Arabia; or when the estimated cost of the deal or purchase does not exceed SAR 1 million. An Exemption Committee will be established to adjudicate any exemption requests submitted by the relevant parties and an appeals process with the Ministry of Finance will also be available. The new guidelines do not provide any further information on incentives for businesses participating in the Regional Headquarters Program including possible exemption from Saudization requirements.