Saudi Arabia: Additional Incentives Announced for Regional Headquarters Program
October 16, 2023
The Regional Headquarters Program, which incentivizes companies to set up their regional headquarters in Saudi Arabia, is creating additional incentives for companies to take part in the program, including a proposal to grant Premium Residency status to executives who base themselves at their Saudi regional headquarters. Currently, Premium Residency status is not granted based on employment; rather, applicants must pay for either a one year (renewable) or unlimited residence. Furthermore, Saudi authorities have proposed additional incentives for employees working at regional headquarters, including: allowing a foreign spouse on a family residency visa to obtain work authorization and allowing dependent male children up to the age of 25 years to obtain a family residence permit, where the current age limit is 18. These incentives are in addition to previously announced initiative, including exemptions to Saudization requirements.
To date, Saudi Arabia has issued licenses to over 160 regional centers under the Regional Headquarters Program – which was announced by the Saudi government in February 2021. As part of this program, effective January 1, 2024, Saudi authorities will significantly reduce their contractual arrangements with foreign companies that do not have a regional headquarter in Saudi Arabia. Only limited exemptions will apply.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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