Question 1

What is the Saudization policy and how does it affect expats?

Accepted Answer

Saudization (Nitaqat) requires companies to employ minimum percentages of Saudi nationals. Companies are rated Platinum, Green, Yellow, or Red based on their Saudi-to-expat ratio. Red-rated companies face restrictions on new expat visas. For expats, this means roles increasingly require specialist skills or senior experience. It also drives salary premiums for qualified expats in hard-to-fill positions. The policy is sector-specific — tech, engineering, and consulting remain relatively open to international talent.

Question 2

What is the end of service benefit?

Accepted Answer

Saudi Labour Law mandates an End of Service Award (ESA): half-month of basic salary per year for the first 5 years, then full month per additional year. It is calculated on your basic salary (not total package) and paid as a lump sum upon departure. If you resign before 2 years, you forfeit the ESA. After 2–5 years, you receive one-third. After 5–10 years, two-thirds. After 10+ years, full entitlement. This is a significant benefit — a 10-year veteran earning SAR 20,000/month basic receives approximately SAR 150,000.

Question 3

Can I work for multiple employers in Saudi Arabia?

Accepted Answer

On a standard Iqama, you are tied to a single employer. Working for another company without authorisation is illegal. Premium Residency holders can work for any employer or be self-employed. Some professionals use company formation or freelance permits to work independently alongside their primary employment — but this must be properly authorised to avoid penalties.

Question 4

What are working hours during Ramadan?

Accepted Answer

During Ramadan, working hours are reduced to a maximum of 36 hours per week (6 hours/day) for all employees, including non-Muslims. This is mandated by Saudi Labour Law. Many companies adopt a 10am–4pm schedule during Ramadan. Restaurants and cafés are closed for dine-in during daylight hours but open for delivery. After iftar (sunset), the city comes alive with late-night dining and socialising.

Question 5

Is there a minimum wage in Saudi Arabia?

Accepted Answer

For Saudi nationals, the minimum wage is SAR 4,000/month in the private sector. For expats, there is no official minimum wage, but the 2025 skill-based classification system sets de facto minimums: High-Skilled (SAR 15,000+), Skilled (SAR 7,000–14,999), Basic (SAR 3,000–6,999). In practice, professional expat salaries are market-driven and typically well above these thresholds. Labour Law protections against non-payment and delayed wages apply equally to expats.

Work & Business

Overview

Key Takeaways

Job Market Overview

Saudi Labour Law Essentials

Saudization (Nitaqat) and Quotas

Remote Work and Freelancing

Planning to start a business in Saudi Arabia?

Common Questions — Work & Business in Saudi Arabia

Find Your Perfect City with AI

Expat Insights, Weekly

More Saudi Arabia Guides

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