Essential Guide to Hiring Expats in Saudi Arabia

Are you looking for a guide to hire expats in Saudi Arabia? Look no further because in this blog, we will walk through a detailed explanation of the process to be followed in order to hire professionals in Saudi.

Saudi Arabia has long standing economical history and now holds a significant position globally. Saudi Arabia is a world leader in oil production and exports. This makes Saudi a typically attractive destination to conduct various business activities. Saudi’s vibrant job market also makes it an attractive destination for companies looking to hire talented professionals. The Kingdom offers a wealth of employment opportunities across various sectors, making it a desirable choice for both local job seekers and international workers.

Saudi Arabia’s location is strategically vital, linking Asia, Europe, and Africa. This makes it a prime spot for international business, acting as a key trade hub globally.

However, navigating the hiring process in Saudi Arabia can be challenging, especially for foreign businesses unfamiliar with the local laws and cultural norms.

Market Analysis and Major Sectors

To effectively hire Saudi expats, it is crucial to understand the major sectors of the Saudi Arabian job market. The Kingdom’s economic development has led to the growth of various sectors, including:

Oil and Gas: The oil and gas industry is a huge player in the Saudi Arabian economy, providing numerous employment opportunities for both Saudis and expatriates.
Construction: With infrastructure development projects underway, the construction sector offers a wide range of job opportunities.
Healthcare: The healthcare industry is expanding rapidly, driven by the Saudi government’s focus on improving healthcare services in the country.
Technology: Saudi Arabia is investing heavily in technology and innovation, making it an ideal sector for job seekers with IT and engineering expertise.
The Saudi culture plays a significant role in shaping employment practices within these major sectors. Understanding the specific needs and preferences of Saudi job seekers can help companies tailor their hiring strategies to attract the best candidates.

The Concept of Saudization

A central focus of employment in Saudi Arabia is the concept of Saudization, which refers to the national policy of encouraging the employment of Saudi nationals. The government has implemented various programs, such as the Nitaqat scheme, to increase job opportunities for Saudi nationals and reduce unemployment rates.

Companies operating in Saudi Arabia are required to meet Saudization quotas, which determine the minimum percentage of Saudi employees they must employ. Compliance with Saudization is monitored by the Ministry of Labor, ensuring that companies prioritize the employment of Saudi nationals.

Saudization initiatives aim to integrate Saudi nationals into the workforce, offering them career development opportunities and contributing to the economic growth of the Kingdom. As a foreign business, understanding and incorporating Saudization into your hiring strategies is crucial for successfully hiring Saudi talent.

Required Documents Expats require for Visa Processing

In order to obtain a work visa, applicants must satisfy the following requirements step by step:

Passport: The applicant’s passport must be valid for at least six months from the date of application, with two consecutive blank pages.

Applicant Photographs: Two passport-sized colored photographs on a white background are required (Dimensions: 2” x 2”). Photos should be recent, taken within the last three months, without eyewear or headgear.

Cover Letter: The employer must provide a cover letter on the company’s letterhead, including the postal address.

Work Contract in Arabic: A photocopy of the work contract typed in Arabic should be submitted.

Visa Application: The applicant must submit the original visa application, written in block letters with black font.

Invitation Letter: This is a legal document issued by the Kingdom of Saudi Arabia Foreign Ministry, confirming the employee’s status in the Kingdom. The employer must obtain this letter, indicating the number of entries required, which may be single or multiple. The letter must be stamped by the Ministry of Foreign Affairs in Saudi Arabia.

Certificate of Business Registration: The applicant should submit the Business Registration Certificate of the sponsoring company, stamped by the Saudi Ministry of Foreign Affairs.

Enjaz Registration: This is an online registration form that must be filled out when applying for a visa. The completed form should be submitted with the visa application.

Signed Saudi Laws and Regulations Form: As part of the visa application process, applicants must sign a form indicating their commitment to comply with the laws and regulations of Saudi Arabia.

Once all requirements are met and approved, the applicant will receive a work visa, allowing them to work in Saudi Arabia. However, it’s important to note that there is a 90-day time limit to apply for the Iqama after receiving the work visa, which must be done by the sponsor who is also responsible for covering the associated costs.

Employers or expat sponsors can seek assistance from reputable HR outsourcing companies for streamlined payroll outsourcing and other services to facilitate the visa application process.

What Is an Iqama and Its Importance for Expats?

An Iqama is a crucial legal document, often presented as a card, granted to expat enabling them to reside and work legally in the Kingdom of Saudi Arabia. Sponsors are responsible for initiating the Iqama application process on behalf of expatriates. This document delineates the expatriate’s legal standing in the kingdom and specifies the duration of their residency there.

Who Is in Charge of Obtaining an Iqama?

The employer holds the primary responsibility for ensuring that the expatriate employee receives an Iqama card. Similar to acquiring a work visa, obtaining an Iqama involves several steps and components.

What Happens if the Employee Brings Their Family?

After an expatriate employee obtains their Iqama, they can proceed to apply for their family members. In this scenario, it’s not the employer who applies for the Iqamas, as spouses and children are linked to the employee, not the employer. The family’s Iqamas contain similar information to the employee’s, including legal names, etc. However, instead of displaying the employer’s name or job title, the Iqama cards indicate that they are dependents of the employee.

However, based on data, 25% of all companies currently operating in Saudi Arabia have not yet relocated their team members’ families. Among those that have relocated, 35% rated the relocation process as a 7, while 65% still found it challenging.

Conclusion

In conclusion, hiring Saudi expats requires a comprehensive understanding of the local job market, employment laws, and cultural nuances. By embracing Saudization initiatives and prioritizing inclusive practices, businesses can attract and retain top Saudi talent. Providing competitive benefits, promoting work-life balance, and fostering a welcoming work environment are essential for employee satisfaction and retention. Utilizing effective onboarding strategies and adhering to termination policies ensure a smooth transition for both employees and employers. By aligning with best practices and respecting local customs, foreign businesses can successfully integrate Saudi expats into their workforce, contributing to a diverse and thriving organizational culture.

About Arnifi

Arnifi is digital first Corporate service provider helping companies enter the Middle East region, starting with UAE and Saudi Arabia markets. Founded and backed by professionals from Amazon, Souq and other large companies operating in KSA – the team understands what it takes to succeed as a startup in both UAE and Saudi Arabian markets, apart from going through the setup process multiple times. Arnifi will provide a truly digital experience to entry and scale up of companies both UAE and Saudi Arabia. The Arnifi promise is simple, yet revolutionary, use technology and a great team to provide transparency, efficiency and great customer experience in the whole process. Check out at – www.Arnifi.com for more details.