RIYADH, Saudi Arabia: Saudi Arabia has refined its procurement regulations to permit government entities to engage international companies lacking a regional headquarters (RHQ) in the Kingdom through a structured exemption process.
Announced by the Local Content and Government Procurement Authority, the update maintains the integrity of the 2024 RHQ relocation policy— which restricts state bodies from contracting with foreign firms whose regional base lies outside Saudi Arabia—while introducing targeted flexibility.
Government agencies can now apply via the Etimad platform for exemptions covering individual projects, clusters of related initiatives, or defined periods, with requests required prior to tender issuance or direct procurement.
The mechanism addresses scenarios demanding specialised technical capabilities or superior financial terms, ensuring project execution remains efficient without broadly diluting the RHQ mandate.
Over 700 multinationals have established RHQs in Riyadh by early 2026, exceeding Vision 2030 targets and reinforcing the Kingdom’s appeal as a regional business hub.
This calibrated adjustment supports timely delivery of strategic initiatives while sustaining incentives for long-term corporate localisation and economic diversification.
