Saudi Arabia’s Deadline for Companies to Move Regional Headquarters to Riyadh

regional headquarters to Riyadh

 A Game-Changer for Business Setup in Saudi Arabia


In a bold move, Saudi Arabia has set a Jan. 1 deadline for companies to move their regional headquarters to Riyadh or risk losing out on lucrative government contracts. This announcement signifies Saudi Arabia’s commitment to transforming its capital city into a global business hub and positioning itself as an attractive destination for foreign investment. In this article, we will explore the implications of this mandatory relocation for businesses and entrepreneurs considering a business setup in Saudi Arabia.


Business Setup in Saudi Arabia

The decision to move regional headquarters to Riyadh offers an exceptional chance for local and global enterprises. By consolidating their activities in the capital city, organizations can leverage the immense potential of the Saudi Arabian market, take advantage of reliable infrastructure, and maximize their exposure and accessibility to government contracts. 


Why Riyadh? 

Riyadh, the capital city of Saudi Arabia, is at the heart of the nation’s economic transformation. As the political, economic, and financial center of the kingdom, Riyadh offers unparalleled opportunities for businesses looking to thrive in the region. The city’s strategic location, world-class infrastructure, and access to key government institutions make it the ideal destination for companies seeking a strong foothold in the Middle East.


The Problem: Lack of Attention to Riyadh

Until now, many companies have opted to establish their regional headquarters in other major cities in the Gulf Cooperation Council (GCC) region, such as Dubai or Doha. While these cities offer their own advantages, Riyadh has often been overlooked as a business destination. Saudi Arabia’s new directive aims to change that perception and incentivize companies to give Riyadh the attention it deserves.


The Deadline’s Impact on Government Contracts 

The deadline of Jan. 1 holds significant implications as businesses failing to fulfill this requirement face the possibility of losing out on profitable government contracts. The Saudi government is proactively seeking collaborations with enterprises that share its vision of economic diversification and growth. By relocating their regional headquarters to Riyadh, companies open themselves to abundant opportunities presented by these potentially transformative contracts. Those who exhibit hesitation may risk forfeiting substantial prospects.


Benefits of Relocating to Riyadh


  • Enhanced Access to Government Contracts: By moving their regional headquarters to Riyadh, companies can establish closer ties with Saudi Arabian government institutions, increasing their chances of securing valuable contracts. This strategic move places businesses at the forefront when government projects and initiatives are being considered, providing a competitive advantage.
  • Proximity to Key Decision-Makers: Riyadh is the political and administrative capital of Saudi Arabia, home to major government entities and decision-makers. Having a presence in the city allows businesses to establish direct connections with influential leaders and policymakers, fostering stronger relationships and opening doors for collaboration.
  • Expanding Market Potential: Saudi Arabia boasts the largest economy in the Middle East, offering the tremendous market potential for both goods and services. By moving their headquarters to Riyadh, companies position themselves geographically and strategically to tap into this vast market, unlocking new growth opportunities.
  • Streamlined Business Operations: Concentrating operations in a single location enables businesses to streamline their processes, enhance efficiency, and reduce costs associated with maintaining multiple regional offices. This consolidation allows companies to allocate resources more effectively and focus on core business goals.


However, there are also some challenges that entrepreneurs should be aware of, such as:

  • Bureaucracy: Saudi Arabia has a complex regulatory environment, which can make it difficult to start and run a business.
  • Cultural differences: Saudi Arabia is a conservative Muslim country, so entrepreneurs need to be sensitive to cultural norms and values.
  • Competition: Saudi Arabia is a competitive market, with both domestic and international companies vying for business.

Navigating the Relocation Process


Relocating a regional headquarters involves careful planning, resource allocation, and compliance with legal requirements. Entrepreneurs and businesses embarking on this journey should consider the following essential steps:

  • Thorough Market Research:

To strategically align your business with the local requirements in Saudi Arabia, it is imperative to attain a thorough understanding of the market dynamics, consumer preferences, and regulatory landscape. By becoming well-acquainted with these pivotal factors, you can make informed decisions and tailor your approach accordingly, enhancing the credibility of your business strategy in the local context.


  • Legal and Administrative Procedures:

To ensure adherence to the business laws of Saudi Arabia, it is essential to acquire the required licenses and permits as well as complete the registration process with the relevant government bodies.


  • Infrastructure and Facilities:

Please locate appropriate office space in Riyadh, taking into consideration its proximity to essential amenities, transportation connections, and the specific requirements of your business.


  • Workforce Considerations:

Recruit and train local talent, taking into account Saudi Arabia’s labor laws and market dynamics. Focus on fostering a diverse, inclusive, and productive workforce.


The deadline of January 1st set by Saudi Arabia, for companies to migrate their regional headquarters to Riyadh, signifies a crucial turning point in the business setup in Saudi Arabia. This bold initiative exemplifies the nation’s steadfast commitment to establishing itself as a prominent global business hub and attracting foreign investments. Companies opting to relocate to Riyadh stand to benefit from lucrative government contracts, close proximity to key decision-makers, and access to a vast market offering ample growth opportunities. However, achieving success in this endeavor requires careful planning, adherence to legal obligations, and a thorough understanding of the local business landscape. Entrepreneurs and businesses should seize this significant opportunity to establish a robust presence in Riyadh and fully leverage the advantages inherent in operating at the heart of Saudi Arabia’s thriving business ecosystem.


Business Link Your Trusted Partner for Relocating Your Regional Headquarters to Riyadh

Moving your regional headquarters to Riyadh can pose difficulties. This is why having a reliable partner to guide you through the intricate process is crucial. Business Link, a renowned provider of relocation services, specializes in assisting businesses of any scale. With our profound knowledge, of the Saudi Arabian market, and extensive comprehension of the specific obstacles encountered during relocation to this region. We are exceptionally equipped to help you overcome these challenges.

Contact us today to learn more about how we can help you move regional headquarters to Riyadh.