Saudization typically follows a 1 in 3 rule in Saudi Arabia. The Saudization requirements will be based on your business activity. Poor Saudization scores can have implications for the company when reporting and will have implication on being awarded work, Government contracts, visa issuance and renewals, license renewals/ access to government portals.
Employers are required to provide mandatory health insurance for their employees.
Cost Considerations may include: requirements for external approvals, annual license/renewal fees, office rent, VAT Return requirements every 3 months, 20% Corporation Tax rate, GOSI (21.5% (9.75% employee contribution, 11.75% employer contribution) for Saudis – 2% for non-Saudis) employees benefit as per employment contract and labour law.
There are office space requirements which will depend on the business activities. For example, Consultancy services will require approximately 100 sqm and above office space.
