Compliance with Saudization and Consequences of Non-Compliance

Local talent is exceptionally well-versed in the market dynamics and its needs, which can help businesses accelerate their time to market and tap into new sets of clients to achieve faster scaling.

Saudization offers a unique opportunity to quickly integrate with the social and economic fabric of Saudi Arabia by utilizing the insights of local talents and their deep knowledge of the market. For example, a Saudi national in a client-facing role can open many doors for various avenues of growth due to the widespread local preference to deal with nationals.

For global businesses, demonstrating a full commitment to Saudization not only ensures legal compliance but also promotes job-rich growth as mandated in Vision 2030. However, non-compliance can lead to blockages on bank accounts, preventing access to funds, and disqualification from bidding on government projects.

Companies that don't comply with Saudization will face difficulties issuing vital documents such as commercial registrations (CR) and general manager (GM) visas, resulting in missed business opportunities.

Best Practices to Navigate Saudization Requirements for Global Business

The decision on which role to place a Saudi national depends on the company's budget, growth stage, salary offerings, and needs.

For multinational companies with an established presence in the market but no physical office, it is advisable to hire a sales or business development person.

For small to medium enterprises or startups with limited budgets and those still exploring the Saudi market, hiring fresh graduates for entry-level positions across various disciplines is advisable.

Regardless of the business structure, companies are required to effectively strategize their hiring drives to meet compliance with Saudization requirements.

AstroLabs’ on-ground team ensures contracts are added to Qiwa and assists with accurate and timely contract uploads and verification of contract details to meet regulatory standards. Reach out to AstroLabs to take the guesswork of Saudization compliance to successfully meet post-business setup requirements.