How Hiring Works in Saudi Arabia: Workforce Setup, GM Onboarding & Compliance Rules

Learn the correct hiring sequence in Saudi Arabia, from GM onboarding to Saudization, visas, and workforce compliance.

Companies scale successfully only when they follow the correct order across leadership setup (GM onboarding), national workforce compliance (Saudi hiring), expatriate onboarding pathways, and system-level regulatory compliance obligations.

The order of hiring determines visa eligibility, Saudization compliance, and whether a company can legally scale its workforce as it sets up its operations in Saudi.

1. Foundational Hire: The General Manager (GM)

The General Manager (GM) must be the first person formally onboarded at your Saudi entity. Once the GM holds a Saudi resident ID (Iqama) tied to your company's sponsorship, they are legally treated as an employee and must be fully registered on all government platforms. Skipping this step, or onboarding any other employee before the GM, renders your entire hiring process noncompliant.

Why this matters: The GM's Iqama is what gives your company the legal standing to:

• Issue work visas and invite employees from abroad

• Transfer existing employees' sponsorship to your entity

• Maintain your Saudization certificate

• Hire additional Saudi or non-Saudi staff

2.1 What GM Onboarding Actually Involves

GM onboarding follows the same compliance steps as standard employee onboarding, but it must happen first and in full before any other hire:

Qiwa work contract: Create a work contract on Qiwa linked to the GM's Iqama ID, with their Iqama tied to your company's sponsorship. A registered Qiwa contract is a core compliance requirement.

GOSI registration: Register the GM with the General Organization for Social Insurance immediately after the contract is created.

Health insurance: After the GM has been fully registered on all government portals, health insurance must be secured and kept active. This is mandatory under the Council of Health Insurance (CHI) for all residents with valid IDs. Even if the GM holds a global insurance policy, a local policy is still required.

Payroll enrollment: Add the GM to your payroll system and process salary monthly in compliance with the Wage Protection System (WPS). This requirement continues for the full duration of the GM's employment.

2. Hiring Saudi Nationals (Mandatory Compliance Step)

After the GM is fully onboarded, your next decision is whether to hire a Saudi national. This is not always required immediately, but in most cases it becomes necessary quickly. Here’s why:

• Saudization certificate: You cannot obtain one without at least one Saudi national on payroll. This certificate is mandatory for government tenders and projects.

• Work visa quota: New entities receive an allowance period during which a limited number of work visas can be issued without a Saudi hire. Once that window closes, you must employ at least one Saudi national to unlock additional expatriate visas.

• Early expatriate hiring: If you intend to bring on non-Saudi employees from the start, you must also employ at least one Saudi national—the quota for additional expatriate hires is otherwise zero.

3. Hiring Non-Saudi Employees (Two Distinct Pathways)

Non-Saudi hiring is split into two separate regulatory flows depending on whether the employee is already inside or outside the Kingdom.

3.1. Hiring a Non-Saudi Already in the Kingdom

The process closely mirrors the Saudi national flow, with two additional employer-side obligations that make this category more complex to manage:

• Sponsorship transfer: You are legally required to transfer the employee's sponsorship from their current employer to your entity before onboarding begins.

• Iqama renewal: Throughout the employment relationship, you are responsible for renewing the employee's Iqama. This does not happen automatically

• Offboarding: When the employment ends, you must either facilitate a transfer to a new sponsor or, if the employee is leaving Saudi Arabia, process a Final Exit visa to cancel their Iqama.

3.2 Hiring a Non-Saudi from Outside the Kingdom: Three Stages

When you are setting up a business as a foreigner and need to bring staff from abroad, the process involves three distinct stages that must be completed in sequence.

Stage 1: Visa Issuance

• Issue and attest a work visa or invitation through the relevant Saudi authorities.

• Select a delegated travel agency in the candidate's country of origin to support visa processing and travel logistics.

Stage 2: Document Preparation and Stamping

• Prepare all required documents: medical examinations, police clearances, and attested educational and professional certificates.

• Submit through the Qualification Verification Process (QVP).

• Once approved, schedule the visa appointment and place the visa stamp on the passport.

Stage 3: Arrival and Residency

• Upon arrival, the employee completes a local medical examination and fingerprinting.

• Obtain a work permit. This is a prerequisite for Iqama issuance and cannot be skipped.

• Arrange health insurance simultaneously with the Iqama application.

• Once the Iqama is issued, complete standard HR compliance: Qiwa contract registration, GOSI enrollment, and WPS payroll setup.

If you need support building out your team while staying fully compliant, contact our team to get assistance tailored to your needs.

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