“Saudisation Policy” and Foreign Workers
Foreign investors setting up in Saudi Arabia should be aware of the saudisation policy that requires a minimum number of Saudis to be employed. This minimum number depends on the type of company and industry. Generally 30% of the workforce is required to be Saudi unless the business relates to construction, cleaning or operational work in which case the requirements is 10%.
Foreign workers must initially obtain a work permit visa.
It is compulsory under the cooperative health insurance law for employers to provide medical insurance that cover the employee and employee’s family. this is normally done at the employer’s cost.
The social insurance regulations provide that a retiring worker who is aged 60 years or over is entitled to an old age pension. The full pension is only available to Saudi nationals who have contributed to GOSI during their working lifetime.