This "2025 Saudi Arabia Going Global White Paper" is published by Horizons, aiming to provide enterprises with guidelines for employment and employee dispatch in Saudi Arabia. The content covers the following key aspects:
Basic Information about Saudi Arabia
- Geography and Economy: Located on the Arabian Peninsula, rich in oil resources, and one of the wealthiest countries in the world.
- Language and Currency: The official language is Arabic, and the currency is the Saudi Riyal. 1 RMB is approximately equal to 0.5121 Saudi Riyal.
- Foreign Investment Policy: The Ministry of Investment is the core institution for foreign investment. The "Vision 2030" initiative promotes economic diversification. Foreign investors can hold 100% equity, and some industries enjoy tax exemptions and other incentives, but sensitive sectors such as defense are restricted.
Employment Market
- Unemployment Rate and Talent Demand: In Q4 2024, the unemployment rate for Saudi nationals dropped to 8.0%. There is strong demand for talent in emerging fields such as new energy and digital economy, while positions in traditional industries are shrinking.
- Salary Levels: Salaries vary greatly across industries. The annual salary in the oil and gas sector is $90,000 - $250,000, while in tourism and entertainment it is $35,000 - $90,000.
Employment Regulations
- Contract Types: There are fixed-term and indefinite-term contracts. Fixed-term contracts automatically terminate or convert to indefinite-term upon expiration. Dismissal under indefinite-term contracts requires severance pay.
- Working Hours and Overtime: Standard working hours are 8 hours per day, 48 hours per week. Working hours are shortened during Ramadan. Overtime is limited to 2 hours per day, and wages are calculated at 150% of the normal rate.
- Employer Expenses: Includes social insurance fees, foreign labor quota fees, etc. Severance pay for indefinite-term contracts is one month's salary per year of service, with a maximum of 12 months.
- Wages and Taxes: Wages must be paid monthly via bank transfer. There is no personal income tax in Saudi Arabia, but a 20% withholding tax applies to fees paid to foreign senior executives and directors.
Visa and Holidays
- Visa: The work visa is a "work residence visa" and requires employer sponsorship. The application requires multiple documents, and accompanying family members must apply separately for a family visa.
- Public Holidays: Includes National Day, Eid al-Fitr, etc. Employees who have worked for one year are entitled to 21 days of paid annual leave, as well as various other leaves such as sick leave and maternity leave.
Employee Life and Culture
- Clothing, Food, Housing, and Transportation: The climate is hot and dry, so suitable clothing is needed. Voltage is 220V, and plug adapters are required. Electronic payment is highly developed, with mainstream payment apps such as STC Pay.
- Customs and Work Culture: The workplace has a clear hierarchy. The weekend is Friday and Saturday. Business attire is conservative, and there are many social etiquette taboos. Alcohol and pork are prohibited in the diet.
- Communication and Apps: Common telecom operators include STC. WhatsApp is the main social tool. E-commerce platforms include Noon and Amazon.sa. Ride-hailing services use Uber and Careem.
Medical Care and Safety
- Medical System: Universal health insurance is implemented. Employers must purchase insurance for foreign nationals. Public hospitals charge low fees but have long waiting times, while private hospitals offer better service but are more expensive.
- Safety Precautions: Overall public security is good. Attention should be paid to natural disasters such as sandstorms. In emergencies, call the police at 999 or the consular protection hotline of the Chinese Embassy in Saudi Arabia.
