What is the new exemption in Saudi Arabia for foreign companies?
The new exemption allows foreign companies to bid on Saudi government tenders without having a Regional Headquarters in the Kingdom for certain project categories. Previously, the 375-million rule prevented many bidders, even those with strong technical capabilities. Now, if the contract does not fall under that requirement, international firms can participate with local registered offices or branches instead of an RHQ. This change boosts competition and gives foreign companies more time to decide if setting up an RHQ aligns with their long-term goals. For businesses thinking about setting up in Saudi Arabia, the exemption reduces the immediate pressure to establish an RHQ while keeping the option open for the future, once the market demand is clearer.