CORPORATE IMMIGRATION 2017: KINGDOM OF SAUDI ARABIA - PWC

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CORPORATE IMMIGRATION 2017: KINGDOM OF SAUDI ARABIA - PWC
Corporate Immigration 2017: Kingdom of Saudi
 Arabia
 Ali Haider
 haider.ali@pwc.com
                                    Saudisation policies went on to        from such advantages. Low-
                                    form the backbone of the Nitaqat       rated companies are also unable
                                    guide to corporate governance,         to prevent existing foreign
                                    which prescribes specific tiers that   national employees from
                                    entities – depending on their          transferring to other, higher-
                                    commercial activities and size –       rated employers. In addition,
                                    must adhere to. The KSA                the government has launched
                                    government is also working on          initiatives to ensure that
                                    moving towards more robust             companies do not simply work
                                    electronic platforms for               towards having a higher Nitaqat
                                    immigration and labour                 grade, but rather make honest
                                    applications. Most work                and calculated efforts to ensure
                                    authorisation and business visitor     that they implement sustainable
                                    applications can now be submitted      recruitment policies that are in
                                    (and monitored) electronically and     line with the programme’s
Overview                            the government is introducing          underlying objective. Policies
                                    measures to improve data-sharing       such as the calculation of
1. In broad terms what is           (between the various ministries        Nitaqat percentages through a
your government’s policy            involved) and improving                system of ‘rolling averages’, as
towards business                    transparency in the process. This      opposed to simple aggregates,
immigration?                        was inaugurated specifically to        serve to ensure that companies
                                    tackle the high rate of youth          are unable to change their
Historically, the Kingdom of        unemployment in Saudi Arabia as        Nitaqat grade on an as-needed
Saudi Arabia (KSA) has              well as the low levels of Saudi        basis, but are rather required to
struggled with high levels of       participation in the skilled           make conscious and deliberate
unemployment among its              workforce of the private sector.       formal Saudisation policies. In
citizens (specifically in the                                              essence, the Nitaqat framework
private sector) and an over-        The Nitaqat framework as it stands     aims to provide incentives for
reliance on foreign talent to       today was formally introduced in       companies that strive towards
drive its industrial and            2011. Under Nitaqat, a private         improving the representation of
commercial exploits. In order to    company is required to meet            Saudi nationals in the private
redress the balance, the KSA        specific Saudisation thresholds,       sector and not necessarily those
has, in past years, made            which are calculated based on the      that aim to improve just their
conscious and systematic efforts    sponsoring entity’s size and the       Saudisation rating in order to
to improve the representation of    industry sector under which it is      bypass the system. Generally
Saudi nationals in the private      registered. Companies under            speaking, sectors with a high
(and government) sectors. A key     Nitaqat are colour-coded               demand for unskilled workers
initiative (which has been fine-    according to their levels of           (eg, construction and farming)
tuned and honed over the years)     Saudisation, with the highest          have lower Saudisation quotas
was the implementation of           rating being platinum and the          to maintain than sectors
formal localisation                 lowest and non-compliant ratings       employing a more skilled
(‘Saudisation’) policies that aim   being red and yellow. Platinum-        workforce such as banking and
to prescribe minimum                rated companies are afforded           telecommunications. The
thresholds that entities were to    many immigration-related               minimum Saudisation
adhere to. The country’s            privileges such as expedited           requirements for the former are
localisation policy, which has      processing of immigration              around 5 to 10 per cent for small
now become a hallmark of most       requests and preferential              entities, but as high as 50 per
Gulf Cooperation Council (GCC)      treatment of quota allocations.        cent for the latter.
corporate immigration policies,     Lower-rated companies (yellow
is aimed at ensuring that the       and red) are effectively penalised     Another ongoing Saudisation
KSA’s skilled workforce             as they are restricted from hiring     initiative is the reservation of
(primarily those from a younger     foreign national employees and         certain designations for Saudi
demographic) are better             are thus compelled to improve          nationals alone (ie, restricting
represented in the private          their rating before they can benefit   foreign nationals from obtaining
sector. The country’s
Corporate Immigration 2017: Kingdom of Saudi
Arabia
Ali Haider

specific job titles). Such roles     the authorities have been               visas for Saudi Arabia:
typically include human              aggressively pursuing companies         commercial visit visas (CVV)
resources positions, clerical        that continue to employ illegal         and work visit visas (WVV).
positions, and some higher           staff. The penalties for
managerial roles. The list of        contravention of this are austere       Commercial visit visa (CVV)
restricted job titles is routinely   and many jail sentences have been
amended and additional               issued to those found guilty.           A CVV is generally issued to
positions typically added.                                                   individuals intending to enter
                                     The overall immigration and work        Saudi Arabia for business-type
The KSA government is strict in      authorisation process in the KSA is     activities. Though the Saudi
ensuring that foreign nationals      time-consuming and involves both        authorities do not maintain an
comply with immigration and          in-country and out-of-country           exhaustive list of permissible
labour policies, namely articles     components. Depending on the            activities that may be conducted
33, 38 and 39 of the Saudi           nationality of the applicant, the       on a CVV, practically speaking
Labour Law. Article 33 permits       proposed job title and the consular     such activities tend to include:
foreign nationals to work only       post of filing, it is not uncommon
once they procure the                for the process to take several         • attending face-to-face
appropriate work authorisation,      months to complete. However,            meetings;
ie, work permit and iqama            that said, the government’s move        • giving presentations;
(residence permit). Article 38       towards implementing a more             • receiving classroom-based
pertains to employment only          robust online application system        training;
under the terms of the work          with shared databases has               • conducting research; and
permit (ie, working in a role or     significantly streamlined a process     • negotiating contracts, etc.
position that is in line with the    that was, historically, completely
job title mentioned on the work      manual. Despite the introduction        Holders of CVVs are strictly
permit and iqama). Article 39        of online immigration portals,          prohibited from engaging in any
states that employees are only       companies operating in the region       hands-on activities that may be
authorised to work for, and at       are still advised to plan business      construed as work. CVVs are
the premises of, the sponsoring      immigration needs in advance,           generally granted to managerial
entity. The Saudi authorities,       maintain contingency plans, and         or professional job title holders
cognisant of the fact that a large   seek counsel from their                 who have a less technical role
majority of foreign entities and     immigration advisers.                   within the company.
foreign nationals were non-
compliant and falling foul of the    Short-term transfers                    Work visit visa (WVV)
new labour laws, introduced an
amnesty in 2013 on all illegal       2. In what circumstances is a           A WVV is issued to individuals
workers and companies                visa necessary for short-term           who need to enter Saudi Arabia
employing illegal workers and        travellers? How are short-              to engage in work activities in
implored them to come forward        term visas obtained?                    relation to short-term
and correct their immigration                                                contractual obligations or
status without any penalties or      All short-term visitors (except for     projects. A WVV does not, from
repercussions. Such was the          holders of GCC passports) must          a strict immigration compliance
interest in the amnesty and the      obtain a visit visa prior to arrival    perspective, grant the holder
subsequent strain on the             in Saudi Arabia, as there is no visa-   long-term work authorisation
immigration authorities that the     on-arrival or tourist visa category.    (which would require the
planned three month amnesty          Generally speaking, short-term          procurement of a valid work
had to be increased to nine          visas are issued for particular         permit and iqama), but rather
months. It is estimated that         purposes: visits in relation to         allows limited hands-on work
approximately 4 million foreign      attending business meetings,            without the establishment of a
workers took advantage of this       seminars, exhibitions, conferences      formal employment
scheme to either regularise their    or even short-term work                 arrangement with the local
immigration status or to leave       assignments. From a business            entity or the establishment of
Saudi Arabia without penalty.        immigration perspective, there are      local payroll. WVVs are usually
Following on from the amnesty        two types of short-term visitor         granted to technical staff, ie,
Corporate Immigration 2017: Kingdom of Saudi
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Ali Haider

engineers and technicians rather     are valid for up to five years with    nationals will not be granted
than management, as the              in-country stays of up to 180          visitor visas for Saudi Arabia
intention is that they would be      days (if multiple entry is             and also individuals with Israeli
performing the technical             specified). It is extremely            stamps in their passport are
activities such as installations,    important that applicants              discouraged from travelling to
repairing and maintenance,           adhere to the duration of stay         Saudi Arabia for fear of rejection
trouble-shooting equipment,          specified on the visa. Failure to      at airport immigration. The list
etc.                                 do so can result in the                of nationalities restricted from
                                     imposition of penalties and bans       entering Saudi Arabia depends
Both the WVV and CVV involve         on re-entry. As stated above, a        on prevailing diplomatic
an in-country and consular           CVV holder is not permitted to         relationships and is subject to
component. The in-country            do hands-on work or revenue-           change without prior notice.
process involves the                 generating work. A visitor of this
procurement of a formal letter of    type can only attend meetings,         Consular posts exercise
invitation (LOI) sponsored by        presentations and training             significant discretion in issuing
the Saudi host entity. The LOI       sessions. Failure to do so can         CVVs and WVVs. The list of
would specify engagement-            result in the imposition of            document requirements varies
specific details as well as the      financial penalties and bans on        from consular post to consular
applicant’s employment and           re-entry.                              post. In addition, certain
biographical details. Once the                                              consular posts may refuse to
LOI is procured, the applicant       A business visitor must always         issue WVVs to individuals who
must apply for the physical visa     be situated at the Saudi               do not hold technical job titles.
at the relevant Saudi consular       sponsor’s premises or                  In such instances, the consular
post abroad. The document            somewhere he or she is                 post may issue CVVs instead or
requirements (and subsequent         contractually permitted to be. If      request that a new LOI
processing times) for procuring      the visitor is required to be at a     (requesting for a CVV rather
CVVs and WVVs vary from              client site then he or she must        than a WVV) be provided. The
consular post to consular post,      wear a visitor badge at all times.     reverse may also be true for
though in most instances the                                                individuals holding technical job
sending entity or employer of        Female applicants go through a         titles, but applying for CVVs.
the applicant may be required to     slightly different visa process
furnish a formal support letter      and must obtain a pre-approval         4. Is work authorisation or
requesting the consular post to      for entry prior to applying at the     immigration permission
issue the visa.                      consulate. Women under the age         needed to give or receive
                                     of 35, or those holding certain        short-term training?
3. What are the main                 South Asian, Middle Eastern, or
restrictions on a business           eastern European nationalities         From a strict immigration
visitor?                             may experience increased               compliance perspective, work
                                     scrutiny and difficulty in             authorisation is required in
As of now, CVVs may be issued        obtaining a visa.                      order to deliver training.
for up to 180 days, while WVVs                                              Generally speaking, such
are generally issued for up to 90    Certain nationalities are              engagements will require the
days. Both single- and multiple-     restricted from obtaining              procurement of a valid WVV.
entry options exist, although        business visitor visas but the list    However, practically speaking,
multiple-entry visas generally       of restricted nationals is not         and depending on the specifics
only permit in-country stays of      fixed and changes often. It is         of the engagement (duration of
30 days per visit. The type of       always advisable to contact the        stay, length or type of training,
visa that is issued (including the   Saudi embassy in the country of        venue of training, etc) holders of
specified duration of stay) is       filing for an up-to-date list of the   a CVV would be able to receive
often contingent on the              countries currently being denied       classroom-based training,
nationality of the applicant and     entry. Countries experiencing          though delivering training
the consular post of filing.         restrictions on entry at the time      would add an element of risk as
American nationals are eligible      of writing include Iraq, Iran,         this might be misconstrued as
to obtain WVVs and CVVs that         Syria and Yemen. Israeli               profit-generating, work activity.
Corporate Immigration 2017: Kingdom of Saudi
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Ali Haider

5. Are transit visas required         filing and then entering Saudi          have been depleted, whichever
to travel through your                Arabia to complete certain in-          occurs first.
country? How are these                country formalities until a final
obtained? Are they only               work permit and iqama                   In addition to the contract, the
required for certain                  are issued. For foreign nationals       company applying for the block
nationals?                            already situated in Saudi Arabia,       visa must have all relevant
                                      they can only transfer to a new         corporate documentation in
All visitors regardless of            sponsor via a sponsorship transfer.     place and must be fully licensed
nationality (except for GCC                                                   to operate within Saudi Arabia.
nationals) are required to obtain     7. What are the procedures              Owing to the increased
a transit visa if an 18- to 72-hour   for obtaining these                     interlinking of ministry
stay in Saudi Arabia is planned.      permissions? At what stage              databases, if any one licence is
This must be obtained in              can work begin?                         not valid the entire block visa
advance (an application must be                                               application stands at risk. This
filed with the Saudi Embassy in       Like most GCC countries, Saudi          can sometimes lead to a delay of
the applicant’s country of            immigration is predicated on a          several months, therefore it is
residence or home country) and        quota system. Any new positions         imperative to review all the
is subject to the following           must first be justified to the          appropriate licences well in
limitations:                          Ministry of Labour. A local Saudi       advance of any block visa
                                      contract to support the need to         application.
• applications should have a          hire is required and the value of
confirmed onward booking to a         the contract should be                  The block visa application does
subsequent destination detailed       commensurate with the number of         not request who the individuals
and these must correspond to          people requested. This contract         applying for authorisation are,
the dates in question;                will form the basis of what is called   but instead demands the general
                                      a block visa application. This is a     profile of the individuals.
• women travelling alone will         discretionary application and the       Mandatory criteria required
not get transit visas; and            authorities rarely grant foreign        include: proposed job title,
                                      companies what they have                gender and religion.
• the visa can only be used for       requested. Therefore, the strategic
single entry into Saudi Arabia.       positioning of a block visa is vital    There are different types of
                                      (ie, request enough positions           block visa applications available,
Obtaining transit visas is subject    based on the business’s                 each designed to cater to
to the discretion of the Saudi        requirements, ensure that the           different business needs (ie,
authorities, who may require the      applicants are identified in            those for companies with private
presentation of additional            advance to ensure that there is no      contracts, those with
supporting documentation              mismatch between job title and          government contracts, and even
justifying the need for a transit     academic qualifications, but being      those looking to replace foreign
visa.                                 mindful that potentially not all of     nationals that have recently
                                      the positions will be granted).         exited the country). Historically,
Long-term transfers                                                           most block visa applications
                                      A supporting contract cannot be         incurred processing times of two
6. What are the main work             used more than once (although           to three months; however,
and business permit                   multiple contracts can be used),        owing to the establishment of
categories used by                    therefore it is imperative for a        online portals, processing times
companies to transfer                 company to get its foreign hiring       have been significantly reduced
skilled staff?                        projections correct at the earliest     and most applications are now
                                      juncture. Generally speaking,           adjudicated in two to six weeks.
The only long-term category is        block visas have a validity period      Once block visa positions are
the work permit and iqama             of two years and once a company         approved, they must be
option. For those based outside       applies for a block visa it cannot      allocated to specific nationalities
of Saudi Arabia, this can be          apply for another one within two        and consular posts of filing.
obtained by first securing a work     months of the date of issuance          Currently, only consular posts
(entry) visa from the country of      (tantamount to a cooling-off            situated in the applicant’s home
                                      period) or until the block visas
Corporate Immigration 2017: Kingdom of Saudi
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Ali Haider

country can be selected.            procured, a work (entry) visa         rules in the same way as other
                                    application can take one to two       jurisdictions. This arrangement
Work (entry) visas are generally    weeks to be processed, depending      lends itself to subjective
issued for a period of 90 days      on the country the application is     interpretations of the rules that
and allow the holder to enter       made in and assuming that all the     do exist. It is not uncommon for
Saudi Arabia to engage in           document legalization has been        two applications with nearly
certain in-country formalities      complete. Document legalisation       identical facts to be decided in
(including a medical                (including the legalisation of the    two separate ways. In addition,
examination) until a final work     applicant’s degree by the Saudi       consular posts abroad tend to
permit and iqama are issued.        cultural attaché’s office and the     exercise significant discretion in
Individuals cannot exit Saudi       Saudi embassy in the country of       the issuance of work and visit
Arabia until the entire work        issuance) can significantly add to    visas. Document requirements
authorization process is            the total lead times.                 vary from consular post to
complete and an exit and re-        Once the applicant enters Saudi       consular post (even those within
entry permit has been obtained.     Arabia on the basis of the work       the same country).
In addition, from a strict          (entry) visa, obtaining a work
immigration compliance              permit and iqama generally takes      12. Is there a special route
perspective, foreign national       one to two weeks (assuming all the    for high net worth
employees entering on a work        corporate documentation is valid      individuals or investors?
(entry) visa may not commence       and up to date and all government
work until a formal work permit     portals are functional). If the       There is currently no special
has been procured.                  applicant requires additional         route for high net worth
                                    validation from a professional        individuals. However, those
8. What are the general             body (ie, engineers and               wishing to set up their own
maximum (and minimum)               accountants) the total processing     business in Saudi Arabia might
periods of stay granted             time may increase by two to three     be able to source a resident’s
under the main categories           weeks.                                permit through their own entity,
for company transfers?                                                    although this process tends to be
                                    10. Is it necessary to obtain         both complicated and time-
The Saudi work visa is valid for    any benefits or facilities for        consuming.
90 days from date of issue and      staff to secure a work permit?
grants the holder a total period                                          13. Is there a special route
of 90 days to finalise all the      Before a work permit can be           for highly skilled
requirements for obtaining an       granted, the sponsoring entity in     individuals?
employment residence permit.        Saudi Arabia must have registered
This is a single-entry visa,        the individual on to a local health   There is no such special route
meaning that having entered         insurance scheme. The scheme          for highly skilled individuals.
Saudi Arabia the holder cannot      must be approved by the Council       However, if the applicant holds
exit until the iqama formalities    of Cooperative Health Insurance.      a unique skill or is a leader in his
are completed. Once granted,                                              or her respective field then a
the iqama must be renewed           11. Do the immigration                certain dispensation may be
annually.                           authorities follow objective          granted if the applicant does not
                                    criteria, or do they exercise         fulfil the immigration criteria. A
9. How long does it typically       discretion according to               good example is where the
take to process the main            subjective criteria?                  applicant is over 60 years of age
categories?                                                               and, therefore, ordinarily would
                                    The immigration authorities follow    not get work authorization for
A block visa application can take   objective criteria, but all           Saudi Arabia. However, if it can
between two to six weeks to         determinations are made on a          be proven the applicant has a
process, depending on the type      case-by-case basis. Rejected          unique skill that is not found in
of visa, the size of the request,   applications are generally not        Saudi Arabia then he or she
the Saudisation rating of the       accompanied by any explanation        could be granted a special
company, etc. Once the              for the rejection. Saudi Arabia       exemption.
underlying block visa is            does not have express immigration
Corporate Immigration 2017: Kingdom of Saudi
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Ali Haider

14. Is there a special route          denoting the companies with high      During this period Saudi nationals
(including fast track) for           Saudisation rates, while yellow        will be given the opportunity to
high net worth individuals           and red are non-compliant              apply for the role.
for a residence permission           categories that must be corrected.
route into your                      Low green, while compliant, is         17. Are there any other main
jurisdiction?                        considered a transitionary zone        eligibility requirements to
                                     and is a warning to the entity to      qualify for work permission
There is no such special route       improve its rating.                    in your jurisdiction?
for high net worth individuals.
See question 12.                     As mentioned previously,               Yes, the Ministry of Labour has
                                     compliant entities are rewarded        prescribed a minimum level of
15. Is there a minimum               with quicker visa-processing           qualification for certain
salary requirement for the           times, access to more immigration      designations, which is usually a
main categories for                  services and facilities, and the       bachelor’s qualification. However,
company transfers?                   right to transfer employees from       for jobs that are specific then the
                                     lower-ranked entities without          qualification held must be equally
There is no direct minimum           objection. Yellow and red entities     specific, for example, a chemical
salary placed on foreign national    cannot hire any foreign staff while    engineer must hold a chemical
employees. However, only             in this category and they cannot       engineering degree and not a
certain categories of employee       stop their existing staff from         generic qualification. More
can sponsor dependants.              transferring away, without             recently, this clause is especially
Generally, unskilled workers         exception.                             important for foreign nationals
cannot sponsor family members.                                              entering Saudi Arabia on
Employees without university         Companies with fewer than 10           engineering job titles. As part of
qualifications may also face         employees are exempt from              the in-country process of obtaining
issues sponsoring family             Nitaqat so long as they employ at      a work permit and iqama,
members.                             least one Saudi citizen (usually the   engineers must be registered with
                                     company’s government relations         the Saudi Council of Engineers
16. Is there a quota system          officer). This exception typically     (SCE). The SCE now requires
or resident labour market            benefits newly setup Saudi entities    applicants to provide relevant
test?                                that would be otherwise deterred       engineering credentials, prior
                                     from investing in Saudi Arabia.        experience in the field and even
In Saudi Arabia each industry        However, as soon as the 10th           clear aptitude tests prior to the
sector has its own thresholds of     employee is hired the entity will be   SCE issuing its approval.
Saudisation that must be             subject to the usual Nitaqat
maintained and any entity            thresholds applicable to that          18. What is the process for
registered under this sector         industry sector.                       third-party contractors to
must abide by the minimum                                                   obtain work permission?
levels that have been set by the     In addition, “Taqat” is the Saudi
Nitaqat programme introduced         government’s latest initiative to      Companies with the appropriate
in 2011 (see question 1). The        improve the representation of          licence may offer manpower
thresholds set vary greatly          Saudi nationals in the private         services to foreign companies.
depending on the industry            sector. The “Taqat” framework          Under this arrangement, the
sector the entity is registered      requires companies looking to          manpower company sponsors the
under.                               obtain work authorisation for          employee and then subcontracts
                                     foreign nationals to conduct a         the employee to the end client.
Nitaqat means ‘zones’ in Arabic      resident labour market test by         This arrangement is typical where
and the programme classifies         advertising positions to Saudi         a foreign company does not have
Saudi registered entities into six   nationals locally before they can      its own entity in Saudi Arabia but
categories: platinum, high           apply for a foreign national's visa.   has contractual needs that must be
green, medium green, low                                                    fulfilled. The main drawback to
green, yellow and red. Platinum,     Job vacancies should be posted for     this arrangement is that the
high green and medium green          14 days before companies may           manpower company effectively
are compliant categories             proceed to apply for a block visa.     becomes the employer of the
Corporate Immigration 2017: Kingdom of Saudi
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employee and the original             or lengthy document procurement        the employee’s ERE cancelled. In
employer loses control over that     times.                                  its place the employee is issued
employee while they remain                                                   with a final exit permit that
subcontracted out. This is           21. Can long-term                       enables him or her to leave the
especially problematic in the        immigration permission be               country. If the employee leaves the
event of a labour dispute, where     extended?                               organisation to join a new
any secondment agreements                                                    company he or she will be required
may not be accepted as valid         When an individual has obtained         to undergo a sponsorship transfer
immigration documents per se.        an employment residence permit,         application, which does not
                                     he or she can continue to live and      formally cancel the iqama.
19. Is an equivalency                work in Saudi Arabia as long as his
assessment or recognition            or her residence permit is valid        25. Are there any specific
of skills and qualifications         and renewed at the stipulated           restrictions on a holder of
required to obtain                   time. Currently, the residence          employment permission?
immigration permission?              permit must be renewed every            Work permits in Saudi Arabia
                                     year.                                   are not region-specific but
Attested copies of educational                                               they are employer specific.
certificates are required in order   22. What are the rules on and
to obtain an employment              implications of exit and re-            If an employee wishes to work for
residence permit for the             entry for work permits?                 a different employer within Saudi
employee’s profession. For                                                   Arabia then a transfer of
example, an engineer would           Employees can exit and re-enter         sponsorship must be completed.
need to have an engineering          the country as long as their            However, from time to time an
degree from a recognized             employment residence permit             employee may need to visit a client
institution (see question 17).       remains valid and they hold a valid     site: this is permissible but if the
                                     exit and re-entry (ERE) permit.         employee is placed there for a
Extensions and variations            Usually residents will secure a         longer period of time then
                                     multiple-entry ERE and these are        justification will be needed,
20. Can a short-term visa be         valid for six months at a time. If an   namely, a contract should exist
converted in-country into            ERE is allowed to expire while the      between the applicant’s iqama
longer term authorisations?          holder is outside Saudi Arabia then     sponsor and the client whose site
If so, what is the process?          the holder could be refused re-         the applicant is placed at.
                                     entry into the country. To this end     Evidence may be needed if an
No. If long-term authorisation is    it is vital that the ERE expiry date    immigration inspector is not
needed then the short-term visa      is carefully tracked and renewed in     satisfied with the reasons given by
must be cancelled first. Any         a timely fashion.                       the applicant (if he or she is
application for long-term work                                               questioned as to why they are
permission must be completed         23. How can immigrants                  working at a site that is not the
from the employee’s country of       qualify for permanent                   same as their sponsor’s address).
citizenship. As the long-term        residency or citizenship?
Saudi process can be quite                                                   Dependants
lengthy, many employees will         Immigrants cannot qualify for
enter Saudi Arabia on short-         permanent residency or                  26. Who qualifies as a
term authorisation while the         citizenship.                            dependant?
preparatory work for their long-
term move is being completed         24. Must immigration                    The following are considered as
(ie, document legalisation, block    permission be cancelled at              dependants:
visa procurement, etc). This         the end of employment in
scenario is commonplace where        your jurisdiction?                      • spouse; and
the demands of a client or                                                   • children (male or female minors,
project are immediate but the        Yes, the employment residence           female adults unless married, and
immigration clearance for Saudi      permit must be formally cancelled       males up to 18 years old or older if
Arabia is still some time away       at the end of the employment and        in full-time education).
owing to a block visa application
Corporate Immigration 2017: Kingdom of Saudi
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Once the main applicant has         28. What social benefits are       No such requirements currently
obtained a residence permit he      dependants entitled to?            exist.
or she must then apply for the
family’s visa. If the main          There are no social benefits       32. Is medical screening
applicant has elderly or infirm     provided to non-Saudi nationals    required to obtain
parents then a case can be          or their dependants.               immigration permission?
presented to the authorities to
permit their sponsorship.           Other matters                      Medical screening is required to
However, if granted this will be                                       obtain a residence permit and a
an exception and the onus is on     29. Are prior criminal             dependant residence permit. For
the main applicant to prove his     convictions a barrier to           visit visas, formal medical
or her parents need care (eg, a     obtaining immigration              screening is not currently
widowed mother, or medical          permission?                        required. Nevertheless,
records suggesting the need for                                        additional tests may be
constant care).                     A police clearance certificate     prescribed, depending on which
                                    from the applicant’s home          country a foreign worker is
Please note that Saudi Arabia       country is required from most      coming from. There are certain
does not recognise the following    (but not all) jurisdictions. If    exceptions made for pregnant
as dependants:                      clearance is not received then     women and children. This may,
                                    the immigration permission will    however, change from time to
•   civil partners;                 not be granted. Consular posts     time and so it is recommended
•   siblings;                       hold discretion in ascertaining    that all visitors check this before
•   unmarried partners;             whether a police clearance         their departure. All visitors to
•   same-sex partners;              certificate citing any prior       (and residence permit holders
•   cohabitees; and                 convictions would permit the       of) Saudi Arabia are screened
•   children of unmarried           issuance of a work (entry) visa.   (eye scan) at the immigration
    parents.                                                           counter before entering the
                                    30. What are the penalties         country and their biometric
27. Are dependants                  for companies and                  information is recorded for
automatically allowed to            individuals for non-               future reference.
work or attend school?              compliance with
                                    immigration law? How are           33. Is there a specific
A spouse in Saudi Arabia under      these applied in practice?         procedure for employees on
her husband’s sponsorship can                                          secondment to a client site
only work in the health or          Non-compliance with                in your jurisdiction?
education sector. In this           immigration law can result in
instance she would remain           companies being fined and their    The concept of secondment in
under her husband’s                 immigration files being blocked    Saudi Arabia does not really
sponsorship but would be            or being forcibly closed down.     exist from an immigration
granted a work permit.              Individuals can also be fined,     perspective. If an employee is to
Children holding formal             imprisoned or have their           work for a client and be
residency (ie, not visitors) can    permits cancelled and can be       remunerated by that client then
be enrolled into a local school.    deported. Furthermore, a           a transfer of sponsorship must
Male children who are old           lifetime ban can be applied to     be undertaken, although this
enough to work (and not in          the violating individual           would make the client the
fulltime education) must            depending on the breach. In        employer of the secondee, which
transfer to a local employer’s      some instances, managers and       is not the intention of a
sponsorship. Female children        directors of the sponsoring        secondment.
who are old enough to work          entity may be publicly reported,
(and not in full-time education     be imprisoned and subsequently     However, relatively recently,
or married) will stay under their   deported.                          Saudi Arabia has launched a
father’s sponsorship and can                                           mechanism permitting
only transfer out into a limited    31. Are there any minimum          employees to be seconded to a
number of occupations (ie,          language requirements for          third party in relation to an
health and education).              migrants?                          underlying contract or
Corporate Immigration 2017: Kingdom of Saudi
Arabia
Ali Haider

agreement. In such instances,
the employee would retain his or
her sponsorship with the
existing employer and obtain an
authorisation to work for, and at
the premises of, the third party.
This facility is granted through
the Absher e-service department
in the Ministry of Labour.

Update and trends

It is widely anticipated that the
thresholds for minimum
Saudisation in the skilled
worker sector will increase again
in the future. As stated above
there is a strong drive to employ
local Saudis in skilled
occupations and this trend looks
set to continue for some time.

Additionally, the number of
‘Saudised’ positions looks set to
increase over the next few years.
It should be noted that Saudi
Arabian immigration is in the
middle of a transition. The
largely antiquated manual
immigration procedures are
being replaced by online ones.
Although many systems have
now been upgraded, we
anticipate that this trend will
continue over the next few
years.

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