Book an appointment with us, or search the directory to find the right lawyer for you directly through the app.
Find out moreThis comprehensive guide is designed to help you navigate the intricate landscape of family business and private wealth in the Middle East, where family businesses constitute approximately 60% of GDP and employ 80% of the workforce in the GCC, offering unparalleled opportunities for wealth creation and preservation.
Packed with insights, strategies, and expert advice from our talented lawyers, Legacy provides tailored solutions to the unique challenges of asset protection, succession planning, and dispute resolution in this dynamic region.Read the publication and equip yourself with the knowledge and tools necessary to thrive, whether you’re a seasoned investor, a family business owner, part of the next generation, or a newcomer exploring opportunities in the region.
Read NowIn early 2022, the Ministry of Investment Saudi Arabia (“MISA”), together with the Royal Commission for Riyadh City implemented the Regional Headquarters (“RHQ”) Programme, with the primary objective of transforming the Kingdom of Saudi Arabia (“KSA”) into a major global economy – part of the country’s impressive Vision 2030 Initiative.
The RHQ Programme is open to companies operating across all industries/sectors and KSA has seen a significant interest in companies seeking to establish their RHQ in KSA.
Al Tamimi & Company has previously issued a briefing on the structure of the RHQ Programme, proposed benefits and overall implications.
By participating in the RHQ Programme, Multinational Groups (being a group of entities operating in one or more jurisdictions with its foreign parent/headquarters outside of the Middle East North Africa Region) will obtain a number of key benefits. Perhaps the most significant benefit/privilege however, would be the ability of the Multinational Group to be eligible for and participate in contracts with Saudi Government Agencies (including Ministries, Authorities, Government Bodies etc.).
There was initially some uncertainty as to how this would apply in practice, but in a very recent and important development, the Council of Ministers (by Royal Ascent) has passed a Resolution No. 377, dated 03/06/1444H (corresponding to 27/12/2022G), which provides and sets out the “Guidelines for Government Contracts with Companies and Related Parties Without Regional Headquarters in KSA” (“ Guidelines”).
Some key features/provisions of the Guidelines include the following:
1. Government Agencies (in carrying out their works and procurements), may not contract companies or any related party that do not have their respective RHQ in KSA, except in the following limited circumstances:
2. Multinational Groups (or related parties) without their RHQ in KSA are not precluded from submitting bids for any public tender put forward by Government Agencies, provided that such Agencies only accept these bids in either of the following cases:
3. Government Agencies are only permitted to invite Multinational Groups (or related parties) that do not have their RHQ in KSA to participate in limited tenders in either of the following cases:
4. Government Agencies are only permitted to invite Multinational Groups (or related parties) to participate in direct purchases in either of the following two cases:
5. A Committee (reporting to the Ministry of Finance) will be formed to consider any applications for exemptions brought by the relevant Government Agency.
For further guidance please contact our Saudi based Corporate Structuring team who will be able to assist and advise on all of aspects relating to this update.
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.