Saudi Arabia rolled out new rules in 2024. The goal was clear: get global investment banks and consultancies to move their regional headquarters from Dubai to Riyadh. The plan demanded at least 15 senior executives work full-time in Riyadh for firms to win government contracts and Public Investment Fund deals. But the world's biggest financial players are not budging. They are staying put in Dubai.
The RHQ program, part of Vision 2030 and run by the Ministry of Investment and the Royal Commission for Riyadh City, offers big tax breaks. There is 0% corporate income tax on eligible income and 0% withholding tax for some non-resident payments for up to 30 years. Even so, these perks have not convinced international banks to pack up and leave Dubai. The numbers tell the story. As of July 2026, only 19 financial institutions had secured RHQ licenses. Another 30 were still in process. The Ministry of Investment said more than 700 companies had registered under the program, beating the Vision 2030 target of 500. But the top banks are not on board.
Firms like "مويليس", "روتشيلد", "بي جي تي بارتنرز", and "إيفركور" have opened offices in Riyadh. But they have not taken out Saudi regional headquarters licenses. They keep running their Middle East operations from Dubai. The reason is simple. The Saudi requirements mean extra costs and more red tape. Reuters and Emirates News Agency (WAM) both reported that Saudi threats to block non-licensed firms from big contracts, including those from the Public Investment Fund (PIF), have not triggered a rush to Riyadh. The banks are holding their ground. No mass migration. Not yet.
The standoff comes down to money and control. Banks say putting senior staff in Riyadh does not bring in revenue. It just adds costs. That clashes with their business models. Some banks are asking for exemptions. Others have left their license applications hanging. A few are thinking about dropping the process altogether. Meanwhile, Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) keep offering strong regulatory systems and international arbitration. The UAE's appeal for global finance is only growing.
Only "لازارد" has set up a regional headquarters in Riyadh. That is the exception. Not the rule. Data from "ديلوجيك" shows Saudi capital markets and merger and acquisition deals dropped in the first half of the year. International bankers point to less activity at the Public Investment Fund. The fund is now focusing on domestic spending because of budget pressure and tighter finances. In September 2026, PIF launched Tawrid, a supply chain financing product. This move shows its shift toward local market liquidity, as reported by Aawsat business news.
Dubai's grip on the region's financial sector is firm. The city's infrastructure, rules, and global links keep drawing in international firms. Recent moves by wealth management companies prove the point. Big banks do not want to leave. Dubai's appeal is strong. In a September 2026 update, the SL Guardian found no sign of banks leaving Dubai. HSBC confirmed its Middle East headquarters is still in Dubai. The city remains the top choice for global financial institutions.
Saudi Arabia wanted to redraw the region's financial map. That has not happened. The facts are plain. When banks weigh costs, operations, and market activity, Dubai wins. Unless Saudi Arabia changes its approach, Dubai will stay on top. The Dubai Economic Agenda D33 and new reforms from the Central Bank of the UAE keep strengthening the emirate's global financial role, as recent WAM state news agency reports show.
