CORPORATE IMMIGRATION 2017: KINGDOM OF SAUDI ARABIA - PWC
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
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’sCorporate 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
Arabia
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
Arabia
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 visasCorporate Immigration 2017: Kingdom of Saudi
Arabia
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 immigrationCorporate Immigration 2017: Kingdom of Saudi
Arabia
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 theCorporate Immigration 2017: Kingdom of Saudi
Arabia
Ali Haider
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 applicationCorporate Immigration 2017: Kingdom of Saudi
Arabia
Ali Haider
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 orCorporate 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.
© 2016 PwC. All rights reserved.
PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure
for further details. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice.
You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty
(express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law,
PricewaterhouseCoopers (Dubai Branch), its members, employees and agents do not accept or assume any liability, responsibility or duty of care for
any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision
based on it.You can also read