Saudi Arabia Introduces Exemption Mechanism to Regional Headquarters Requirement in Government Contracting

Saudi Arabia has introduced a formal exception mechanism allowing government entities to contract with foreign companies that do not maintain a regional headquarters (RHQ) in the Kingdom, reversing the strict prohibition implemented in 2024, while preserving the general RHQ requirement. Under the new approach, ministries and public bodies may request case specific or time limited exemptions through the Ministry of Finance’s Etimad Platform before launching a tender or awarding a direct contra…