On 5 December 2023, the Ministry of Investment of Saudi Arabia (“MISA”), in collaboration with the Ministry of Finance and the Zakat, Tax and Customs Authority (“ZATCA”), officially announced a 30-year tax relief program as an incentive to attract foreign global companies to establish their regional headquarters (“RHQ”) in the Kingdom of Saudi Arabia (“KSA”). Introduced in 2021, the RHQ program has already granted licenses to over 200 companies to operate their RHQ from KSA and its objective is to attract even more enterprises.
The comprehensive 30-year incentive package will grant foreign companies the opportunity to enjoy a tax rate of zero percent for both the (i) corporate income tax and (ii) withholding tax on the approved regional headquarters activities. Notably, the current corporate income tax rate in KSA stands at 20% and the withholding tax varies between 5% to 20%.
Companies establishing their headquarter in KSA will immediately benefit from this newly introduced package from the day their headquarters license is issued. This initiative will empower multinational corporations, enabling them to expand their regional presence through KSA and fostering the creation of new job opportunities.
Aligned with KSA’s Vision 2030, this tax incentive program aims to boost foreign direct investments and contribute to the economic diversification of the country, ultimately allowing KSA to reduce its dependence on oil generated revenues. This initiative positions KSA as a compelling alternative to other business hubs like the United Arab Emirates, aiming to establish itself as the premier commercial and investment hub in the Middle East by offering promising advantages to companies seeking a strategic business environment in the region.
Background Boursa Kuwait (“Boursa”) has announced the implementation of a comprehensive regulatory and legislative framework governing bonds and sukuk, following approval by the Kuwait Capital market Authority (“CMA”) under Resolution No. 38 of 2026 dated 1 April 2026 (“CMA Resolution”), in conjunction with amendments to Boursa rulebook introduced by Boursa… Read more
Board Resolution No. 32 of 2026 - Published in the Official Gazette on 5 April 2026 - In Force Immediately Authors: Abdulwahab Sadeq (Partner), Lama Abou Ali (Counsel), Adel Alasousi (Senior Associate) and Sara Awaly (Associate) KEY TAKEAWAYS On 5 April 2026, the Kuwait Competition Protection Agency (the "CPA") published… Read more
Over the past few weeks, Dubai has introduced a series of laws that, when viewed together, signal something much broader than routine regulatory updates. This is not incremental reform. It reflects a structural shift in how regulation is conceived and enforced. The issuance of Dubai Law No. (3) of 2026,… Read more
In times of regional uncertainty, businesses often reassess their operational and financial exposure. For boards of directors, however, the legal position remains clear: geopolitical developments do not alter the duties owed by directors under UAE and Kuwait law. Under UAE Federal Decree Law No. 32 of 2021 on Commercial Companies… Read more
Subject: Risk and Claims Management in Light of Current Geopolitical Circumstances and Disruptions to Some Business Activities In light of the geopolitical developments and the ongoing war in the region, and the resulting economic and operational impacts, including the disruption of some business activities or the temporary closure of facilities,… Read more
Law No. (10) of 2026 Regulating the Digital Commerce Sector Law No. (10) of 2026 regarding the regulation of the digital commerce sector in Kuwait establishes a legal framework governing commercial activities conducted through digital and electronic platforms within the State of Kuwait. The law aims at regulating the expanding… Read more