Riyadh – 
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In a recent announcement, Saudi Arabia allows some companies to operate in the kingdom without having a headquarters in the country.
Companies with foreign operations not exceeding 1 million Saudi riyals ($266,000) can operate in the kingdom without local headquarters.
Also, companies competing for government contracts without any other bidders are also exempt from the rules.
Saudi Arabia has made some exceptions for government institutions and funds seeking to deal with foreign firms that do not have a regional headquarter in the Kingdom, as its new Companies’ Law comes into force on Jan. 19, 2023.
The exceptions are part of the new Companies’ Law which was approved by the Saudi Cabinet on June 28, 2022 and published in the official newspaper Umm Al-Qura on July 4, 2022. The new Companies’ Law introduced in 2021 and restricts international companies with no headquarters in the Kingdom from working with government, comes into force on Jan. 19, 2023.
As part of the exceptions, the new law states that in the absence of any other offer that is technically acceptable, agencies, institutions, and funds can deal with foreign firms with no headquarters in the Kingdom.
