Foreign job for Asians
Saudi Arabia
Living or working in Saudi Arabia?
Just Landed helps you manage everyday life. Our Saudi Arabia Guide covers topics like visas, housing, jobs and finance. Join the Just Landed Community, get in touch with people like you and share your experiences. Most importantly, have fun!
Visas & Permits
Before leaving to come to Saudi Arabia, make sure you understand your legal situation. Depending on your nationality, you might need a visa, residence permit and/or work permit. Read our guide to legal requirements for coming to Saudi Arabia or use the Just Landed forums to ask other members for help.
Documentation required to enter Saudi Arabia
The movement of foreigners is tightly controlled in Saudi Arabia, and issuing of visas and other permits is subject to strict bureaucratic procedures.
Those who are denied access therefore have little opportunity for appeal. Fortunately, the average expatriate doesn’t need to deal with much of the bureaucracy. Most companies and institutions, large or small, have a ‘fixer’, whose job is to wade through the red tape generated by the various ministerial departments in order to obtain work and residence visas for foreign workers and their families. The fixer will also act as your guide whenever your presence is required.
The documents required to enter Saudi Arabia include the following:
Note also that any visible connection with Israel, e.g. an Israeli passport or an Israeli entry stamp, will disqualify you from entry.
While you’re in Saudi Arabia, you’re required to carry identification documents, e.g. passport or national identity card and appropriate entry and residence visas. Note that it’s common for labour officials to carry out spot checks on businesses in search of workers employed illegally and to inspect passports in the possession of the employer.
Saudi Arabia is the most conservative state in the region, with strict adherence to Sharia law, its city of Mecca (known in Saudi Arabia asMakkah) being the birthplace of Islam. The Saudis regard this as a particular honour, one that is reinforced by their wealth of natural resources. Ignoring the strict application of the laws and cultural rules can earn you serious retribution. Many foreigners, however, live and work happily in Saudi Arabia for many years.
Visas
How to obtain a visa
Attempting to enter Saudi Arabia without authorisation isn’t only pointless, but is also likely to prove costly.
In fact, if you’re hoping to fly into the country, you won’t even get past the check-in desk. Similarly, if you arrive at one of the land borders, you will be quickly, and perhaps aggressively, turned back. Muslims find entry to the Kingdom much easier, the issue of visas for religious purposes (the Haj and Umrah visas) being a well-controlled, well-administered process. There are strict national quotas per country for these visas, which are issued annually, because the volume of people wishing to visit the holy places is enormous.
You must be particularly careful with dates shown on Saudi visas, which conform to the Islamic ( Hijra) calendar. Overstaying your visa by even 24 hours can lead to fines and further delays.
Note also that there are no shortcuts that the individual himself can take with the immigration authorities and the rules applying to visas. Rejections and refusals can be permanent. Note also that Saudi Arabia is the only Gulf state where passengers in transit, by air or land, also require a visa, known as a transit visa.
Transit VisaIf you’re changing planes at a Saudi airport and therefore have no option but to temporarily stop in the country, a 24 or 48-hour transit visa is required. You must surrender your passport to the immigration authorities, who will return it on your departure. If you’re driving from Bahrain, Qatar or the United Arab Emirates (UAE) to Jordan, you might be granted a seven-day transit visa. Those driving between Jordan, Yemen or Kuwait via the Kingdom are usually allowed a three-day transit visa. When crossing Saudi borders, it’s essential that your papers are in order and your transport plans are absolutely clear. Check the procedure with the Saudi embassy or consulate in your home country and seek permission from the destination country. Also be aware that, although transit regulations are written down, they’re occasionally open to local interpretation, particularly at border points. Expect the unexpected.
Visitor VisaAt present, there’s no substantial tourist industry in Saudi Arabia, so few tourist visas are issued, although things are changing gradually and the intention is to build a limited tourist trade. To obtain a tourist visa, you must be invited by a company or individual (the higher his standing and influence the better) who will act as your sponsor and undertake responsibility for you during you stay. The sponsor applies for the visa on your behalf and obtains a serial number. You must then approach a Saudi embassy and obtain a visa stamp in your passport, for which there’s a small charge. Without the serial number, you cannot obtain a visa.
Although not officially sanctioned, it’s sometimes possible to have a visitor visa converted to a residence visa (see below) while you’re in the Kingdom. Strictly, you should return to your country of domicile to await the official process, but if your sponsor has sufficient clout, many things are possible.
Note that it’s extremely difficult for young, single women to enter the country unless it’s clear that they’re closely related to expatriate workers. Business women will encounter serious obstacles to entry unless they’re members of a Saudi family or have the sponsorship of a powerful Saudi national.
Residence Visa & PermitObtaining a residence visa is usually a lengthy procedure – around a couple of months – with a considerable amount of paperwork on the part of the employer and individual. Having been given a contract of employment, you must present your contract, academic and/or professional qualifications and the results of a full medical examination, including HIV test either to the Saudi embassy or consulate in your home country or to the authorities in Saudi Arabia via your sponsor. You will then be issued with a visa number, with which you can proceed to a Saudi embassy or consulate to obtain a stamped residence visa, which will be converted to a residence permit after your arrival in the Kingdom (where you might be asked to take the medical again!). Your residence permit (Iqama) includes your photograph and must be carried at all times, your passport having been retained by your sponsor.
Exit VisaShould you go on leave or undertake a business trip outside the Kingdom, your sponsor will obtain an exit/re-entry visa, which is a stamp in your passport, and temporarily withdraw your residence permit. Having completed your stay or contract, you’re issued with an exit-only stamp in your passport and are required to surrender the residence permit.
The requirement of an exit visa to leave Saudi Arabia while working there is a tedious restriction on your personal freedom and in an emergency can be problematic, if your sponsor isn’t readily available to process papers. Fortunately, this rarely happens and the sponsor often has a deputy authorised to sign for him. In an emergency, your embassy might assist by intervening on your behalf.
If an expatriate holds a senior position in his company (e.g. Managing Director or General Manager), he might be able to obtain a multiple exit/re-entry visa, usually valid for six months. This visa allows easy passage in either direction but isn’t automatically renewable.
Employment prospects
Saudi Arabia allows plenty of foreign workers into its territory, but almost exclusively on a temporary basis.
Expatriates aren’t generally allowed to become part of the permanent population. Foreign workers are dealt with in a fair but controlled way, paid and treated well, and at the end of their time in the region, thanked and rewarded for their efforts. On the other hand, the government is conscious of the need to provide decent jobs with career paths for their own young people, who are increasingly educated and aware of the attractions of the outside world – many attend universities in the USA or UK. Having made major investments in education and social welfare, they hope that eventually Saudi Arabia will become almost self-sufficient in terms of labour.
A majority of outside observers, however, believe that expatriates will have a substantial role to play for many years to come, and it seems likely that expatriates will continue to be important for the next two or three decades, although there will undoubtedly be changes in the number of people employed and the type of skills required. For example, the vast construction projects currently found throughout the region (e.g. road systems, airports, ports and trading zones) will become less numerous, with a resulting decline in the number of manual workers required. Commercial development, however, will lead to further building programmes as Saudi Arabia’s economy continues to grow. Managerial, professional and particularly technological experience will still be in strong demand for many years to come. But there will be none of the mass immigration and resulting demands for citizenship that have been experienced in western societies, or the current trend of economic refugees looking for a better way of life. Saudi Arabia will simply not allow it. Foreigners cannot become citizens or own land and property, although there appears to be some lessening of the restrictions, certainly as regards owning one’s own business.
There are other general issues to consider: you’re contemplating a move to a culture that’s almost certainly different to your own; will the way of life, and particularly the restrictions imposed on you, suit you? Will the relocation benefit your long-term career prospects? Will your family (especially any children) cope with and benefit from the move? What impact will it have on their education and employment prospects? If you aspire to be your own boss, as many people do, be aware that starting a business in the region can prove difficult and that you will almost always be required to have a local partner who has a majority holding. Is that acceptable to you?
The Middle East has been the scene of considerable conflict and unrest in recent decades, although the Gulf states are generally safe places to live and work. However, before travelling anywhere in the Middle East, it’s wise to obtain advice from your country’s foreign office. Note also that homosexuality is regarded as a criminal offence throughout the region.
You should ideally have a firm offer of employment before travelling to Saudi Arabia. Speculative visits are occasionally successful, but you need to be notably lucky and have high-grade qualifications and experience to stand any chance. In addition, you will almost certainly need knowledgeable local contacts and have done some research into the types of company which would most value your experience.
Kingdom of Saudi ArabiaThe Kingdom of Saudi Arabia is recognised as the major influence on the states of the Gulf Co-operation Council. In addition to this, the religious significance that Saudi Arabia has as the geographical and spiritual centre of the Islamic world cannot be over-emphasised. Muslims regard Mecca ( Makkah in Arabic) as the birthplace of Islam, and the faith demands that every Muslim who can afford it make a pilgrimage to the holy sites. Saudis feel honoured that their country is the centre of the religion.
In the past, the Kingdom was financially dependent on the massive influx of visitors for the annual pilgrimage (Haj) to Mecca and the many other religious occasions that constitute the faithful’s duties in visiting the birthplace of the Islamic religion. However, increasingly since the 1970s, Saudi Arabia has been a major oil producer, and it now dominates the sector. It’s estimated that around a quarter of the world’s oil and gas resources are situated in the Kingdom, and oil exports account for 90 per cent of its total earnings.
The 1970s and 1980s saw vast spending programmes incorporated into Soviet-style five-year plans. However, with the drop in oil prices in the late 1990s, Saudi Arabia’s income was reduced and the country’s ambitious development programmes restricted. Spending cuts were introduced to some public sectors, although not to those that would radically affect people’s everyday lives, such as health and education. The Kingdom is currently finishing its sixth five-year plan, which called for expansion of private investment and industry, including the important financial sector. Recent oil price rises will increase revenue again but, because most of the numerous expansion projects have been completed and hordes of foreign workers have departed, the demand for imports has reduced.
One of the most notable government institutions, with part-private ownership, is Saudi Basic Industries Corporation (SABIC), which operates across a wide field of activities with many foreign companies. Its main ventures are the production of petrochemicals, plastics and fertilisers. Mining is also being actively developed in Saudi Arabia, whose wealth of natural resources includes phosphate, copper and gold ore, and it’s expected that in the future, mining might become the country’s second source of revenue, after oil. The Kingdom also produces iron, steel, cement and processed foods. Employment is concentrated in construction, industry, and consumer and government services, and major industrial expansion centres are located at Jubail in the eastern province and at Yanbu on the Red Sea coast.
As a result of industrial development, massive power generation has been needed, and this is provided by the Saudi Electric Company (SEC). Water is a vital resource, for human consumption and commercial use, and has always been in short supply, but the Kingdom’s needs are now met by numerous desalination plants on the coast.
The Saudi financial sector is important, and its banking industry is the largest in the region. The Saudi Arabian Monetary Agency (SAMA)controls and regulates finance in its role as the central bank, and many foreign banks operate in the country. The Saudi stock exchange is a leading new bourse.
Despite Saudi’s harsh climate, there has been an expansion in agri-business as the government has sought to become self-sufficient in foodstuffs. Large milk-producing farms supply much of the Kingdom’s needs. Wheat production originally allowed for some exports, but this has ceased, the high cost of irrigation having made it unviable. There’s an export market in fish, particularly to neighbouring Gulf states, but also to some parts of Europe.
Apart from religious pilgrims visiting the Kingdom’s holy sites, general tourism was, until recently, discouraged in Saudi Arabia. This is now slowly changing, partly for economic reasons. Although Saudi Arabia has vast tracts of empty desert, it also offers many places of great beauty, from mountains to lush fertile plains and a huge coastline. In recent years, European cruise ships have been calling at the port of Jeddah on the Red Sea, a previously unheard-of occurrence. However, a visit to Saudi Arabia is unlikely to suit the average fun-loving holidaymaker, and the annual pilgrimage ( Haj) to Mecca is still by far the country’s largest ‘tourist’ event. Quotas of visitors to Mecca are now allocated to each country in order to keep the crowds to manageable levels, and countries whose pilgrims have caused major disturbances have had their quotas reduced.
Sponsorship
What is a sponsor?
All foreigners require a local sponsor in order to visit Saudi Arabia (whether on holiday or business) or live and work there.
Whereas in the west the word ‘sponsor’ is commonly used of individuals or businesses paying to have their names associated with an artistic or sporting event, in the Gulf it has a quite different meaning: a sponsor acts as a sort of guardian as well as guarantor and must undertake all administrative work (i.e. paperwork) on behalf of the foreigner, including applying for a work and residence visa, opening a bank account and signing a rental accommodation contract. A sponsor can be an individual, a company or an institution. In the case of employees, your employer usually also acts as your sponsor; visitors may be sponsored by a business partner or associate or by the hotel in which they’re staying. Those aiming to do business or set up a business in Saudi Arabia should research the local business environment, establish contacts and find an individual or company with a good reputation and experience in the relevant field to act as your sponsor, who will expect remuneration for his services.
The sponsorship system is an effective form of immigration control. As your sponsor is responsible for you and ‘takes the rap’ if you misbehave or contravene any regulations (which will also involve him in loss of ‘face’ in the community), he automatically checks that you’re reliable and trustworthy, as well as ensuring that you don’t inadvertently step out of line. For this reason, your sponsor is an important source of help and advice and a valuable ‘ally’. Note that there is talk of the sponsorship requirement being waived in some states, particularly for foreigners wanting to set up businesses in the free trade zones, but this hadn’t happened at the time of publication.
Recruitment Agencies
How they operate
Recruitment consultants or agents play a major role in the placement of workers in a host of occupations in Saudi Arabia.
In view of the distance between Saudi Arabia and the countries that supply many of the region’s employees, it’s necessary for agents to act as middlemen. Private recruitment consultants and headhunters in western countries (and particularly in London and New York) deal with most managerial jobs in Saudi Arabia, while agencies in India (particularly Bombay), Sri Lanka, Pakistan, Korea, the Philippines (Manila) and Thailand (Bangkok) supply most of the enormous number of manual labourers employed in Saudi Arabia’s numerous construction projects.
Agencies tend to specialise in particular areas of work, e.g. medical and nursing staff, computer personnel, accountants, construction managers, executive and office staff, engineering and the technical trades. Agency and consultancy fees are paid by the employer, with no charge to staff. Fees are usually a percentage of the annual salary, ranging from 10 to 20 per cent for most jobs but lower for those with high salaries. Regular customers are often offered preferential rates.
Recruitment agencies in Saudi Arabia itself are sometimes used for placing expatriates in temporary work or for expatriate wives wishing to take up local employment. There are numerous regulations controlling the employment of spouses, and separate work visas are needed; the agent handles the details. Local agents are also used if expatriates change jobs. This, however, is uncommon, as expatriates are normally sent to Saudi Arabia under contract and job changes are restricted by their employers. You might under certain circumstances be allowed to break your contract, in which case a local agency might be of use. Otherwise, at the conclusion of your contract, a local agency might find you another job.
Government Employment ServiceSaudi Arabia has no equivalent of the nationally-organised job centres found in western countries, and it’s the responsibility of the Ministries of Labour and Social Affairs to deal with employment (Ministry of Labour and Social Affairs, Riyadh 11157 (Tel. 966-1-477 14800)).
Saudi Arabia is trying to balance the need to import foreign labour with the interests of the local population, and companies are strongly encouraged to take on local nationals where possible. This ‘encouragement’ can be quite robust, and the Ministries are able to restrict the number of work visas issued or renewed to a company in order to comply with a quota of local intake.
Working conditions
Salary & Working hours
Salaries in Saudi Arabia are usually similar to or greater than those paid in western countries.
But because the region has no personal taxation, net income is usually much greater, which is one of the major attractions of working in Saudi Arabia. In the past, remuneration packages were split into various elements: basic salary, car provision or allowance, housing provision or allowance, medical cover, education for children and air tickets for home visits. Today, however, employers tend just to pay a salary, which covers all these expenses, although in some cases there are performance or other bonuses.
In addition to their salary, contract workers are awarded an ‘indemnity’ at the end of the contract period. Saudi Arabia legislates that the indemnity is based on the value of the entire remuneration package including performance bonuses (where applicable). The indemnity can be a significant amount of money if you’ve been working in Saudi Arabia for a long time, and many people manage either to accumulate a reasonable financial cushion or to live the high life. If you’re clever and disciplined, you should be able to do some of both. The indemnity has nothing to do with insurance but is an end-of-contract bonus which is required by law to be paid to expatriate workers as a sort of ‘thank-you’ for being of service to the state. (It’s also known as ‘end of service benefits’.) Indemnity scales usually amount to 15 (in some cases 20) days of basic pay per year of employment for the first three years and thereafter a month’s salary per year of employment.
Note that some Arab companies regularly delay the payment of salaries, cash flow problems being passed on to their staff. In this event, you have little alternative but to wait.
Working Hours & OvertimeThe working week in Saudi Arabia tends to vary between 40 and 48 hours, depending on the particular company’s policy. Office hours are usually from 8.30 or 9.00 am to 5.30 or 6.00 pm. There are no differences in time keeping between summer and winter. In the month of Ramadan, the working day is reduced to six hours and legally this should apply to all staff, but many companies only apply it to Muslims, who fast during daylight hours.
Friday is the Muslim rest day and, if your company has a five-day working week, the other day off will probably be either Thursday or Saturday. Saturday is the more popular choice for international companies, as taking Thursday off would mean a reduction in the number of operational days in common with much of the rest of the world. Conversely, other companies insist on Thursday, as the school ‘weekend’ is Thursday and Friday.
Before leaving to come to Saudi Arabia, make sure you understand your legal situation. Depending on your nationality, you might need a visa, residence permit and/or work permit. Read our guide to legal requirements for coming to Saudi Arabia or use the Just Landed forums to ask other members for help.
Documentation required to enter Saudi Arabia
The movement of foreigners is tightly controlled in Saudi Arabia, and issuing of visas and other permits is subject to strict bureaucratic procedures.
Those who are denied access therefore have little opportunity for appeal. Fortunately, the average expatriate doesn’t need to deal with much of the bureaucracy. Most companies and institutions, large or small, have a ‘fixer’, whose job is to wade through the red tape generated by the various ministerial departments in order to obtain work and residence visas for foreign workers and their families. The fixer will also act as your guide whenever your presence is required.
The documents required to enter Saudi Arabia include the following:
- a passport valid for at least six months (it’s useful to have at least three or four photocopies);
- at least six passport-size photographs;
- a marriage certificate (if applicable);
- birth certificates for all family members;
- a medical certificate in the case of workers.
Note also that any visible connection with Israel, e.g. an Israeli passport or an Israeli entry stamp, will disqualify you from entry.
While you’re in Saudi Arabia, you’re required to carry identification documents, e.g. passport or national identity card and appropriate entry and residence visas. Note that it’s common for labour officials to carry out spot checks on businesses in search of workers employed illegally and to inspect passports in the possession of the employer.
Saudi Arabia is the most conservative state in the region, with strict adherence to Sharia law, its city of Mecca (known in Saudi Arabia asMakkah) being the birthplace of Islam. The Saudis regard this as a particular honour, one that is reinforced by their wealth of natural resources. Ignoring the strict application of the laws and cultural rules can earn you serious retribution. Many foreigners, however, live and work happily in Saudi Arabia for many years.
Visas
How to obtain a visa
Attempting to enter Saudi Arabia without authorisation isn’t only pointless, but is also likely to prove costly.
In fact, if you’re hoping to fly into the country, you won’t even get past the check-in desk. Similarly, if you arrive at one of the land borders, you will be quickly, and perhaps aggressively, turned back. Muslims find entry to the Kingdom much easier, the issue of visas for religious purposes (the Haj and Umrah visas) being a well-controlled, well-administered process. There are strict national quotas per country for these visas, which are issued annually, because the volume of people wishing to visit the holy places is enormous.
You must be particularly careful with dates shown on Saudi visas, which conform to the Islamic ( Hijra) calendar. Overstaying your visa by even 24 hours can lead to fines and further delays.
Note also that there are no shortcuts that the individual himself can take with the immigration authorities and the rules applying to visas. Rejections and refusals can be permanent. Note also that Saudi Arabia is the only Gulf state where passengers in transit, by air or land, also require a visa, known as a transit visa.
Transit VisaIf you’re changing planes at a Saudi airport and therefore have no option but to temporarily stop in the country, a 24 or 48-hour transit visa is required. You must surrender your passport to the immigration authorities, who will return it on your departure. If you’re driving from Bahrain, Qatar or the United Arab Emirates (UAE) to Jordan, you might be granted a seven-day transit visa. Those driving between Jordan, Yemen or Kuwait via the Kingdom are usually allowed a three-day transit visa. When crossing Saudi borders, it’s essential that your papers are in order and your transport plans are absolutely clear. Check the procedure with the Saudi embassy or consulate in your home country and seek permission from the destination country. Also be aware that, although transit regulations are written down, they’re occasionally open to local interpretation, particularly at border points. Expect the unexpected.
Visitor VisaAt present, there’s no substantial tourist industry in Saudi Arabia, so few tourist visas are issued, although things are changing gradually and the intention is to build a limited tourist trade. To obtain a tourist visa, you must be invited by a company or individual (the higher his standing and influence the better) who will act as your sponsor and undertake responsibility for you during you stay. The sponsor applies for the visa on your behalf and obtains a serial number. You must then approach a Saudi embassy and obtain a visa stamp in your passport, for which there’s a small charge. Without the serial number, you cannot obtain a visa.
Although not officially sanctioned, it’s sometimes possible to have a visitor visa converted to a residence visa (see below) while you’re in the Kingdom. Strictly, you should return to your country of domicile to await the official process, but if your sponsor has sufficient clout, many things are possible.
Note that it’s extremely difficult for young, single women to enter the country unless it’s clear that they’re closely related to expatriate workers. Business women will encounter serious obstacles to entry unless they’re members of a Saudi family or have the sponsorship of a powerful Saudi national.
Residence Visa & PermitObtaining a residence visa is usually a lengthy procedure – around a couple of months – with a considerable amount of paperwork on the part of the employer and individual. Having been given a contract of employment, you must present your contract, academic and/or professional qualifications and the results of a full medical examination, including HIV test either to the Saudi embassy or consulate in your home country or to the authorities in Saudi Arabia via your sponsor. You will then be issued with a visa number, with which you can proceed to a Saudi embassy or consulate to obtain a stamped residence visa, which will be converted to a residence permit after your arrival in the Kingdom (where you might be asked to take the medical again!). Your residence permit (Iqama) includes your photograph and must be carried at all times, your passport having been retained by your sponsor.
Exit VisaShould you go on leave or undertake a business trip outside the Kingdom, your sponsor will obtain an exit/re-entry visa, which is a stamp in your passport, and temporarily withdraw your residence permit. Having completed your stay or contract, you’re issued with an exit-only stamp in your passport and are required to surrender the residence permit.
The requirement of an exit visa to leave Saudi Arabia while working there is a tedious restriction on your personal freedom and in an emergency can be problematic, if your sponsor isn’t readily available to process papers. Fortunately, this rarely happens and the sponsor often has a deputy authorised to sign for him. In an emergency, your embassy might assist by intervening on your behalf.
If an expatriate holds a senior position in his company (e.g. Managing Director or General Manager), he might be able to obtain a multiple exit/re-entry visa, usually valid for six months. This visa allows easy passage in either direction but isn’t automatically renewable.
Employment prospects
Saudi Arabia allows plenty of foreign workers into its territory, but almost exclusively on a temporary basis.
Expatriates aren’t generally allowed to become part of the permanent population. Foreign workers are dealt with in a fair but controlled way, paid and treated well, and at the end of their time in the region, thanked and rewarded for their efforts. On the other hand, the government is conscious of the need to provide decent jobs with career paths for their own young people, who are increasingly educated and aware of the attractions of the outside world – many attend universities in the USA or UK. Having made major investments in education and social welfare, they hope that eventually Saudi Arabia will become almost self-sufficient in terms of labour.
A majority of outside observers, however, believe that expatriates will have a substantial role to play for many years to come, and it seems likely that expatriates will continue to be important for the next two or three decades, although there will undoubtedly be changes in the number of people employed and the type of skills required. For example, the vast construction projects currently found throughout the region (e.g. road systems, airports, ports and trading zones) will become less numerous, with a resulting decline in the number of manual workers required. Commercial development, however, will lead to further building programmes as Saudi Arabia’s economy continues to grow. Managerial, professional and particularly technological experience will still be in strong demand for many years to come. But there will be none of the mass immigration and resulting demands for citizenship that have been experienced in western societies, or the current trend of economic refugees looking for a better way of life. Saudi Arabia will simply not allow it. Foreigners cannot become citizens or own land and property, although there appears to be some lessening of the restrictions, certainly as regards owning one’s own business.
There are other general issues to consider: you’re contemplating a move to a culture that’s almost certainly different to your own; will the way of life, and particularly the restrictions imposed on you, suit you? Will the relocation benefit your long-term career prospects? Will your family (especially any children) cope with and benefit from the move? What impact will it have on their education and employment prospects? If you aspire to be your own boss, as many people do, be aware that starting a business in the region can prove difficult and that you will almost always be required to have a local partner who has a majority holding. Is that acceptable to you?
The Middle East has been the scene of considerable conflict and unrest in recent decades, although the Gulf states are generally safe places to live and work. However, before travelling anywhere in the Middle East, it’s wise to obtain advice from your country’s foreign office. Note also that homosexuality is regarded as a criminal offence throughout the region.
You should ideally have a firm offer of employment before travelling to Saudi Arabia. Speculative visits are occasionally successful, but you need to be notably lucky and have high-grade qualifications and experience to stand any chance. In addition, you will almost certainly need knowledgeable local contacts and have done some research into the types of company which would most value your experience.
Kingdom of Saudi ArabiaThe Kingdom of Saudi Arabia is recognised as the major influence on the states of the Gulf Co-operation Council. In addition to this, the religious significance that Saudi Arabia has as the geographical and spiritual centre of the Islamic world cannot be over-emphasised. Muslims regard Mecca ( Makkah in Arabic) as the birthplace of Islam, and the faith demands that every Muslim who can afford it make a pilgrimage to the holy sites. Saudis feel honoured that their country is the centre of the religion.
In the past, the Kingdom was financially dependent on the massive influx of visitors for the annual pilgrimage (Haj) to Mecca and the many other religious occasions that constitute the faithful’s duties in visiting the birthplace of the Islamic religion. However, increasingly since the 1970s, Saudi Arabia has been a major oil producer, and it now dominates the sector. It’s estimated that around a quarter of the world’s oil and gas resources are situated in the Kingdom, and oil exports account for 90 per cent of its total earnings.
The 1970s and 1980s saw vast spending programmes incorporated into Soviet-style five-year plans. However, with the drop in oil prices in the late 1990s, Saudi Arabia’s income was reduced and the country’s ambitious development programmes restricted. Spending cuts were introduced to some public sectors, although not to those that would radically affect people’s everyday lives, such as health and education. The Kingdom is currently finishing its sixth five-year plan, which called for expansion of private investment and industry, including the important financial sector. Recent oil price rises will increase revenue again but, because most of the numerous expansion projects have been completed and hordes of foreign workers have departed, the demand for imports has reduced.
One of the most notable government institutions, with part-private ownership, is Saudi Basic Industries Corporation (SABIC), which operates across a wide field of activities with many foreign companies. Its main ventures are the production of petrochemicals, plastics and fertilisers. Mining is also being actively developed in Saudi Arabia, whose wealth of natural resources includes phosphate, copper and gold ore, and it’s expected that in the future, mining might become the country’s second source of revenue, after oil. The Kingdom also produces iron, steel, cement and processed foods. Employment is concentrated in construction, industry, and consumer and government services, and major industrial expansion centres are located at Jubail in the eastern province and at Yanbu on the Red Sea coast.
As a result of industrial development, massive power generation has been needed, and this is provided by the Saudi Electric Company (SEC). Water is a vital resource, for human consumption and commercial use, and has always been in short supply, but the Kingdom’s needs are now met by numerous desalination plants on the coast.
The Saudi financial sector is important, and its banking industry is the largest in the region. The Saudi Arabian Monetary Agency (SAMA)controls and regulates finance in its role as the central bank, and many foreign banks operate in the country. The Saudi stock exchange is a leading new bourse.
Despite Saudi’s harsh climate, there has been an expansion in agri-business as the government has sought to become self-sufficient in foodstuffs. Large milk-producing farms supply much of the Kingdom’s needs. Wheat production originally allowed for some exports, but this has ceased, the high cost of irrigation having made it unviable. There’s an export market in fish, particularly to neighbouring Gulf states, but also to some parts of Europe.
Apart from religious pilgrims visiting the Kingdom’s holy sites, general tourism was, until recently, discouraged in Saudi Arabia. This is now slowly changing, partly for economic reasons. Although Saudi Arabia has vast tracts of empty desert, it also offers many places of great beauty, from mountains to lush fertile plains and a huge coastline. In recent years, European cruise ships have been calling at the port of Jeddah on the Red Sea, a previously unheard-of occurrence. However, a visit to Saudi Arabia is unlikely to suit the average fun-loving holidaymaker, and the annual pilgrimage ( Haj) to Mecca is still by far the country’s largest ‘tourist’ event. Quotas of visitors to Mecca are now allocated to each country in order to keep the crowds to manageable levels, and countries whose pilgrims have caused major disturbances have had their quotas reduced.
Sponsorship
What is a sponsor?
All foreigners require a local sponsor in order to visit Saudi Arabia (whether on holiday or business) or live and work there.
Whereas in the west the word ‘sponsor’ is commonly used of individuals or businesses paying to have their names associated with an artistic or sporting event, in the Gulf it has a quite different meaning: a sponsor acts as a sort of guardian as well as guarantor and must undertake all administrative work (i.e. paperwork) on behalf of the foreigner, including applying for a work and residence visa, opening a bank account and signing a rental accommodation contract. A sponsor can be an individual, a company or an institution. In the case of employees, your employer usually also acts as your sponsor; visitors may be sponsored by a business partner or associate or by the hotel in which they’re staying. Those aiming to do business or set up a business in Saudi Arabia should research the local business environment, establish contacts and find an individual or company with a good reputation and experience in the relevant field to act as your sponsor, who will expect remuneration for his services.
The sponsorship system is an effective form of immigration control. As your sponsor is responsible for you and ‘takes the rap’ if you misbehave or contravene any regulations (which will also involve him in loss of ‘face’ in the community), he automatically checks that you’re reliable and trustworthy, as well as ensuring that you don’t inadvertently step out of line. For this reason, your sponsor is an important source of help and advice and a valuable ‘ally’. Note that there is talk of the sponsorship requirement being waived in some states, particularly for foreigners wanting to set up businesses in the free trade zones, but this hadn’t happened at the time of publication.
Recruitment Agencies
How they operate
Recruitment consultants or agents play a major role in the placement of workers in a host of occupations in Saudi Arabia.
In view of the distance between Saudi Arabia and the countries that supply many of the region’s employees, it’s necessary for agents to act as middlemen. Private recruitment consultants and headhunters in western countries (and particularly in London and New York) deal with most managerial jobs in Saudi Arabia, while agencies in India (particularly Bombay), Sri Lanka, Pakistan, Korea, the Philippines (Manila) and Thailand (Bangkok) supply most of the enormous number of manual labourers employed in Saudi Arabia’s numerous construction projects.
Agencies tend to specialise in particular areas of work, e.g. medical and nursing staff, computer personnel, accountants, construction managers, executive and office staff, engineering and the technical trades. Agency and consultancy fees are paid by the employer, with no charge to staff. Fees are usually a percentage of the annual salary, ranging from 10 to 20 per cent for most jobs but lower for those with high salaries. Regular customers are often offered preferential rates.
Recruitment agencies in Saudi Arabia itself are sometimes used for placing expatriates in temporary work or for expatriate wives wishing to take up local employment. There are numerous regulations controlling the employment of spouses, and separate work visas are needed; the agent handles the details. Local agents are also used if expatriates change jobs. This, however, is uncommon, as expatriates are normally sent to Saudi Arabia under contract and job changes are restricted by their employers. You might under certain circumstances be allowed to break your contract, in which case a local agency might be of use. Otherwise, at the conclusion of your contract, a local agency might find you another job.
Government Employment ServiceSaudi Arabia has no equivalent of the nationally-organised job centres found in western countries, and it’s the responsibility of the Ministries of Labour and Social Affairs to deal with employment (Ministry of Labour and Social Affairs, Riyadh 11157 (Tel. 966-1-477 14800)).
Saudi Arabia is trying to balance the need to import foreign labour with the interests of the local population, and companies are strongly encouraged to take on local nationals where possible. This ‘encouragement’ can be quite robust, and the Ministries are able to restrict the number of work visas issued or renewed to a company in order to comply with a quota of local intake.
Working conditions
Salary & Working hours
Salaries in Saudi Arabia are usually similar to or greater than those paid in western countries.
But because the region has no personal taxation, net income is usually much greater, which is one of the major attractions of working in Saudi Arabia. In the past, remuneration packages were split into various elements: basic salary, car provision or allowance, housing provision or allowance, medical cover, education for children and air tickets for home visits. Today, however, employers tend just to pay a salary, which covers all these expenses, although in some cases there are performance or other bonuses.
In addition to their salary, contract workers are awarded an ‘indemnity’ at the end of the contract period. Saudi Arabia legislates that the indemnity is based on the value of the entire remuneration package including performance bonuses (where applicable). The indemnity can be a significant amount of money if you’ve been working in Saudi Arabia for a long time, and many people manage either to accumulate a reasonable financial cushion or to live the high life. If you’re clever and disciplined, you should be able to do some of both. The indemnity has nothing to do with insurance but is an end-of-contract bonus which is required by law to be paid to expatriate workers as a sort of ‘thank-you’ for being of service to the state. (It’s also known as ‘end of service benefits’.) Indemnity scales usually amount to 15 (in some cases 20) days of basic pay per year of employment for the first three years and thereafter a month’s salary per year of employment.
Note that some Arab companies regularly delay the payment of salaries, cash flow problems being passed on to their staff. In this event, you have little alternative but to wait.
Working Hours & OvertimeThe working week in Saudi Arabia tends to vary between 40 and 48 hours, depending on the particular company’s policy. Office hours are usually from 8.30 or 9.00 am to 5.30 or 6.00 pm. There are no differences in time keeping between summer and winter. In the month of Ramadan, the working day is reduced to six hours and legally this should apply to all staff, but many companies only apply it to Muslims, who fast during daylight hours.
Friday is the Muslim rest day and, if your company has a five-day working week, the other day off will probably be either Thursday or Saturday. Saturday is the more popular choice for international companies, as taking Thursday off would mean a reduction in the number of operational days in common with much of the rest of the world. Conversely, other companies insist on Thursday, as the school ‘weekend’ is Thursday and Friday.
