Middle East & Africa · SAR

Hire in Saudi Arabia

Kingdom of Saudi Arabia — 36 million population, $27,600 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Saudi Arabia.

Capital

Riyadh

Currency

Saudi Riyal (SAR)

Languages

Arabic

Time zones

UTC+3 (AST)

Hiring overview

Typical time to hire
2-4 weeks for contractor, 4-8 weeks for full-time (visa processing can add weeks)
Entity requirement
Saudi LLC or branch. Must have a local partner (unless in special economic zones). SAGIA registration.
EOR available
Yes — from $399/employee/month through a Corpshore entity
Contractor of record
Yes — from $39/worker/month

Employment law

Standard workweek
48 hours (40 during Ramadan for Muslims)
Maximum weekly hours
48 hours
Minimum annual leave
21 days (30 after 5 years)
Public holidays
4 per year
Maternity leave
10 weeks (4 before + 6 after) at full pay
Paternity leave
3 days
Notice period
60 days (indefinite contracts) or as per contract (fixed-term)
Severance
End of service benefit: 15 days per year (first 5 years) + 30 days per year thereafter.
Probation
90 days (extendable to 180 by agreement)
Overtime rules
150% of hourly rate for overtime. Friday is the weekly rest day.

Tax overview

Income tax range
0% (no personal income tax for residents)
Corporate tax
20% (foreign-owned); zakat (2.5%) for Saudi-owned
Social contributions
GOSI: 2% employee + 12% employer (Saudi nationals). 2% employer only for non-Saudis.
VAT / GST
15% (tripled from 5% in 2020)
Tax year
Hijri calendar or Gregorian
Treaty network
Over 40 tax treaties

Compliance landscape

Worker classification
Saudi Labour Law governs. Freelance permit (work permit for self-employment) introduced under Vision 2030.
Data protection
Personal Data Protection Law (PDPL, effective September 2023). SDAIA (Saudi Data and AI Authority) initially oversees.
Right to work
All foreign workers require employer-sponsored work visa (iqama). Kafala (sponsorship) system being reformed under Vision 2030.
Non-compete
Enforceable under Saudi Labour Law. Must be reasonable in time, place, and type of work.
Collective bargaining
Trade unions are not permitted. Labour disputes handled by Labour Courts.

Payment rails

Bank transfer (SARIE)
Wise

SARIE (Saudi Arabian Riyal Interbank Express) is the RTGS system. SAR is pegged to USD. STC Pay and mada (debit) are widely used domestically.

Key considerations for hiring

  • Saudization (Nitaqat) quotas require minimum percentages of Saudi nationals per industry and company size
  • Vision 2030 is transforming the economy: massive investment in tech, tourism, entertainment, and NEOM
  • No personal income tax but 15% VAT and Saudization compliance add complexity
  • Riyadh is positioning itself as the regional tech and business hub, attracting MNC regional HQs

Business and cultural context: Saudi Arabia

Business culture

Hierarchical and relationship-driven. Personal trust precedes business deals. Arabic hospitality (coffee, dates) is important. Gender dynamics in the workplace are evolving rapidly under Vision 2030.

Key industries

Oil and gas (Aramco)
Construction
Financial services
Technology
Tourism (Vision 2030)

Talent pool strengths

Energy engineering
Construction management
Finance
IT (growing)
Arabic-language services

Historical context

Saudi Arabia's Vision 2030, launched in 2016 by Crown Prince Mohammed bin Salman, aims to diversify the economy away from oil dependence. The plan includes NEOM (a $500B future city), entertainment liberalisation, tourism expansion (Red Sea Project), and Saudization of the workforce. This transformation is creating enormous demand for skilled workers across sectors.

Ready to hire in Saudi Arabia?

Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Saudi Arabia for you.

Hire in Saudi Arabia — employment law, tax, compliance | Corpshore Work