The changes in corporate immigration rules and how they will impact businesses in Saudi Arabia by Omer Saleem, CEO at Proven

Corporate immigration is a critical aspect of doing business in Saudi Arabia, as it affects the ability of companies to build up capabilities and expand capacity. The Kingdom is a major hub of economic activity for not only the region, but a leading player in the global marketplace, making it essential for businesses to have a clear understanding of the changes in corporate immigration rules and how these will impact operations in the country. A line of sight on potential changes and the ability to adapt service models in a timely manner can mean the difference between success and failure.

In 2022, the net migration rate for immigrants into Saudi Arabia was 2.015 per 1,000 population.

Recently, Saudi Arabia has implemented several changes to its corporate immigration policies aimed at attracting more foreign investment and fostering economic growth. There is a strategic move to diversify the economy and support the private sector. These changes include simplified visa procedures, increased flexibility in the type of visas available, and an increased number of opportunities for foreign workers to bring their families to the Kingdom. In addition, there have been numerous programmes introduced to improve and raise the standard of living and promote livability through a higher quality of life for the residents of the Kingdom.

Recently, significant advancements have been made to protect minority investors in the Kingdom, ranking it third worldwide, after New Zealand and Singapore.

With plans to carry out several large-scale projects, Saudi Arabia provides a platform for global entities to flourish, as well as employment opportunities in healthcare and education.

In 2019, the number of international companies operating in Saudi Arabia rose by 54 per cent and in the following year, 44 businesses involved in technology, food, beverages, consulting, and construction were given licenses to open regional headquarters in the Kingdom.

These changes are expected to have a significant impact on businesses operating in Saudi Arabia, particularly those that rely on foreign talent. This is a critical element given the young demographic of the workforce in the Kingdom and the need for skills and knowledge transfer.

The immigration rules around a dependent visa have been relaxed and it is easier for foreign workers to bring dependents to the Kingdom. In addition, the National Strategy for Digital Transformation has accelerated the rate of digitisation and automation of services, which has greatly increased the ease with which corporate immigration cases and tasks can be completed. These changes, along with the higher quality of life factors, will help to attract and retain top talent by making the country a more attractive place to live and work in.

Last month, the ministry of foreign affairs launched the service of issuing transit visas for stop-overs electronically to assist visitors coming into the Kingdom for all purposes. Through the fast and easy-to-use online portal, visitors from 49 eligible countries can now apply for an eVisa, a one-year, multiple-entry visa, allowing tourists to spend up to 90 days in the country.

Another important change in corporate immigration rules is the increase in the number of opportunities for foreign workers to apply for, manage and extend their visas. There are now multiple options for renewal periods, which allows for flexibility and more effective budgeting. This will make it easier for businesses to retain top talent and reduce the cost and hassle associated with constantly recruiting new employees. The increased flexibility in visa extension options will also allow companies to better plan, as they will have more certainty around their ability to retain key employees in the Kingdom and increase the flow of knowledge transfer.

One critical change in corporate immigration rules that are expected to have a major impact on businesses in Saudi Arabia is the streamlining of company application processes for various sectors along with regulations around foreign ownership. The new process is designed to be faster and more flexible, which will help to reduce the time and resources required to establish and bring foreign workers to the Kingdom. The ministry of investment (MISA) helps to streamline entry into the KSA market. MISA, along with other local service providers, helps to bridge the initial gaps in compliance, operational efficiencies, and knowledge to provide a soft landing. This will make it easier for businesses to expand their operations, and make the country more attractive to businesses, as they will be able to expand rapidly, and their workers will adapt to work more quickly.

In conclusion, the changes in corporate immigration rules in Saudi Arabia are expected to have a significant impact on businesses operating in the region. The higher quality of livability factors, simplified visa procedures, increased flexibility in the type of visas available, and the ability for companies to easily navigate the business environment will help to attract and retain top talent, while the streamlining of the visa application process will help to reduce the time and resources required to bring foreign workers to the Kingdom. These changes are a positive step forward for businesses operating in Saudi Arabia and will help to strengthen the Kingdom’s position as a leading player in the global marketplace. They are also necessary to maintain and support the growth velocity which the business sector in Saudi Arabia is experiencing.

• KT Network