One of the most difficult parts of any business growth is finding the right people to work for your company. As you begin the process of recruiting talent in Saudi Arabia, you’ll need to understand the country’s culture and business etiquette. Even if you’re ready to hire employees in Saudi Arabia, you have to wait until you’ve established a subsidiary in the country. If this process takes several months, you could lose valuable talent to other open positions.
G-P helps take the stress out of the hiring process with our Global Growth Platform™ backed by the industry’s largest team of legal and HR experts. We can hire employees on your behalf and get you established in Saudi Arabia starting in just minutes instead of days. As a result, instead of worrying about Saudi Arabia employment compliance, you can focus on growing your company.
Recruiting in Saudi Arabia
You’ll want to make sure you’re advertising your open positions through the best channels to reach talented employees. You’ll also need to make sure your company complies with anti-discrimination laws during the recruitment process in the country.
In Saudi Arabia, many companies do the majority of their recruiting through referrals and word of mouth. This method will be a challenge if your company doesn’t have an established presence in Saudi Arabia yet, but you might choose to partner with a global employment expert that already has some established contacts. Online job listings and social media can also be useful tools during the recruitment process.
Laws against discrimination in Saudi Arabia
Under Saudi Arabia’s law, citizens are protected from discrimination based on sex, age, or disability. The law specifically forbids discrimination during the performance of work as well as in job advertisements and the hiring process. To stay compliant, ensure you avoid mentioning traits in job postings unless they are legitimate requirements for the position. For example, avoid phrases such as “recent graduate,” “young and dynamic team,” and “seasoned and highly qualified.”
How to hire employees in Saudi Arabia
Saudi Arabia has certain laws and regulations that dictate how to hire employees. The country requires every employee to have an employment contract that outlines local labor law standards in both Arabic and English. It is best practices to provide a written employment contract that includes compensation, benefits, and termination terms.
As of May 12, 2022, all employee contracts must be documented and approved through Saudi Arabia’s online Qiwa platform.
Saudi Arabia employment laws
One Saudi Arabia employment compliance regulation to be aware of is a policy called “Saudization.” This national policy encourages companies to hire citizens of Saudi Arabia, making it difficult to get new work permits for employees from other countries. It’s easier to recruit employees who already have an iqama, or resident work permit, than to sponsor visas.
The government has continually strengthened these policies since 2011. More recent measures include a mandate that some positions in specific sectors can only employ locals and additional incentives to hire women and individuals with disabilities.
The Ministry of Human Resources and Social Development in Saudi Arabia announced in 2021 that it would set aside 20% of private sector engineering positions for citizens as part of Saudization. This policy applies to all private sector employers with 5 or more employees in engineering professions.
As of April 2023, the Ministry of Human Resources and Social Development in Saudi Arabia finalized rules for Saudization in certain sectors.
- Marketing: 40% Saudization ratio
- Healthcare: 60% Saudization ratio
- Translation: Citizens only
- Data entry: Citizens only
- Project management 35% Saudization ratio and 40% by December 12, 2024. They must also pay these workers at least SAR 6,000 per month.
- Procurement: 50% Saudization ratio
- Sales 15% Saudization ratio
- Postal and freight 100% Saudization ratio, with the exception of certain jobs like loading, packaging, and cleaning, which can have up to 20% non-Saudi workers.
- Women’s tailors and beauty salons with 10 or more non-Saudi workers: Must have hired at least 1 female Saudi employee by December 24, 2023, with some exceptions.
As of June 23, 2023, marketing and sales positions in the Medina region must meet the 40% Saudization ratio. In the Jazan region, the Saudization ratio for marketing and sales positions must be 100% as of July 19, 2023.
Saudi Arabia also created 4 new economic zones in Riyadh, Jazan, Ras Al-Khair, and Makkah in April 2023. Companies located in these new zones will be exempt from Saudization requirements, but companies that employ Saudi nationals will receive benefits.
Onboarding in Saudi Arabia
There is no mandated process for onboarding employees, so you can create a process that best suits your company. Consider establishing a good relationship to start an employer-employee relationship off on the right foot.
Grow globally with G-P.
G-P never forgets that behind every hire is a human being. That’s why we’ve backed our fully customizable suite of global employment products with our robust team of HR and legal experts, so we can remain at your side, ready to support you as you build your global teams. With the #1 Global Growth Platform™, you have the recruitment tools and services you need to find your perfect full-time or contract match.
Contact us today to learn more about how we can help you recruit, hire, and onboard anyone, anywhere.