RIYADH: Global risk assessment firm Moody’s Corp. announced on Feb. 18 the establishment of a new regional headquarters in Riyadh, aiming to deepen the company’s presence in Saudi Arabia.
According to a press release, the company said that the move underscores its commitment to supporting the development of the Kingdom’s capital markets and broader economy.
Saudi Arabia launched the Regional Headquarters Program to encourage multinational companies to establish operations in the Kingdom.
More than 600 foreign companies have established their regional bases in Saudi Arabia since the launch of the initiative , including Morgan Stanley, PepsiCo, PwC, and Deloitte.
Rob Fauber, president and CEO of Moody’s, said: “Our decision to open a Regional Headquarters in Riyadh reflects our confidence in the strong economic momentum in Saudi Arabia, as well as our commitment to helping local and international investors seize opportunities with our expertise and analysis.”
He added: “We are well-positioned to provide the analytical capabilities and market intelligence that investors and institutions need to navigate evolving markets across the Middle East.”
Moody’s described the move as a testament to the Kingdom’s economic dynamism and growth trajectory, and the expansion builds upon its existing footprint in the country, where it first opened an office in 2018.
The new RHQ is expected to enhance collaboration with Saudi institutions and provide greater access to high-quality data, analytics, and insights crucial for informed decision-making, according to the press release.
The Kingdom’s Regional Headquarters Program provides 30 years of tax relief, including zero percent corporate income and withholding tax on RHQ activities, along with a 10-year exemption from Saudization requirements. Additionally, the top three RHQ executives receive premium residency at no cost, further enhancing Saudi Arabia’s appeal to global corporations.
Peter Ivantsov, founder and managing partner of GCG Structuring, told Arab News that the Kingdom is prioritizing genuine operational substance over cosmetic presence.
“The incentives are extraordinary, from zero percent corporate and withholding tax for 30 years and premium residency for top executives to Saudization relief,” Ivantsov said. “However, what most advisors won’t tell you is that the Kingdom is watching for substance. An RHQ that exists on paper while real authority stays in another jurisdiction is a structural risk, not a tax advantage.”
Peter Ivantsov, founder and managing partner of GCG Structuring. Supplied
According to Ivantsov, the companies successfully leveraging the program are those relocating genuine governance, board oversight, and capital allocation, as well as executive accountability, into the Saudi entity.
The senior official noted a regional shift toward tangible commitment. “The shift is structural, not cosmetic, and it’s this movement of human capital that signals real commitment to both regulators and counterparties.”
The initiative has consistently outperformed expectations, with the goal of 160 companies coming in the first-year surpassed months ahead of schedule.
In October 2025, then-Minister of Investment Khalid Al-Falih announced that the Vision 2030 target of 500 by the end of the decade had already been exceeded, with 675 regional headquarters already set up in Riyadh under the scheme.
According to Ivantsov, this rapid growth reflects a wider regional shift: “The Middle East isn’t competing on incentives alone anymore. It’s competing on substance. The companies and institutions that understand this, whether in Riyadh, Abu Dhabi, or Dubai, are the ones building lasting competitive positions.”
The initiative has consistently outperformed expectations, with the goal of 160 companies coming in the first year surpassed months ahead of schedule.
In October 2025, then-Minister of Investment Khalid Al-Falih announced that the Vision 2030 target of 500 by the end of the decade had already been exceeded, with 675 regional headquarters already set up in Riyadh under the scheme.
