MC Moelis & Co - Ordinary Shares - Class A

Several prominent Wall Street advisory firms are resisting Saudi Arabia’s regional headquarters requirements, arguing that staffing mandates do not fit their business models, according to the Financial Times. Moelis, Rothschild, PJT Partners and Evercore continue to use Dubai as their main regional hub and have not obtained RHQ licenses despite opening offices in Riyadh. The RHQ program, effective since 2024, requires companies to employ at least 15 full-time workers at their Saudi regional headquarters within a year of receiving a license. Firms without an RHQ in Riyadh risk losing government contracts, including business from the $900 billion sovereign wealth fund PIF. The staffing rules are particularly challenging for boutique firms because RHQ employees must be senior managers performing administrative functions rather than directly generating revenue, increasing operating costs. $MC $EVR $PJT $LAZ