Saudi Arabia has long been considered a safe haven for expatriates. Despite its very traditional and often conservative culture, the country has attracted migrants from all around the world. While xenophobia in many countries in the Middle East is still relatively high, Saudi Arabia remains a country of opportunity, both for employment and investment. This is perhaps the reason why it’s estimated that, in 2019, Saudi Arabia was home to around 13.5 million expats, representing one third of the total population.
Expats have been particularly visible in crucial sectors such as accounting, teaching, engineering, medicine, consulting and financial services. For most, the country has provided an opportunity for short-term and long-term professional development and economic stability. But with the recent economic downturn due to Covid-19, and the governments determined plans to reduce its reliance on foreign labor, questions have been raised about whether expats can still return to Saudi Arabia.
Unfortunately, as of 2021, Saudi Arabia has severely restricted the entry of foreign nationals and expats into the Kingdom. Any foreign resident who has been abroad is required to present a PCR certificate with a negative result before being able to return to the country. Additionally, according to the current regulations, expats that left Saudi Arabia on holiday are not allowed to return for more than 15 days. Furthermore, any foreign national that wants to obtain a residency permit should have a sponsor in the kingdom with the ability to provide a job, accommodation and other legal and financial requirements.
The changes imposed by the Saudi government have hit especially hard expatriates that had temporarily left to visit their families. Many have found themselves unable to return to their jobs, and even more so, unable to reach their loved ones back in Saudi Arabia. This situation has left many expats in a difficult state, feeling powerless and desperate.
The uncertainty and anguish of the situation has led to many expatriates joining together to voice their opinion. Professional associations such as the Saudi British Business Council and non-governmental organisations have been at the forefront of this effort, advocating for a more inclusive and flexible approach when it comes to foreign residents and their rights. They call for the authorities to open an official and timely dialogue with foreign residents in order to best address their needs.
In spite of these efforts, a clear and definite answer remains uncertain. It seems that the policies regarding the return of expats to Saudi Arabia will remain in a state of flux, as the political structure of the country continues to be in a state of reformation. Nevertheless, regardless of the current restrictions, one thing is clear: as long as foreign nationals and expats are able to fulfil the legal requirements, Saudi Arabia still provides an environment filled with numerous professional and financial opportunities.
The pandemic’s impact
The ongoing Covid-19 pandemic has created a period of uncertainty in Saudi Arabia, with the government introducing stricter travel regulations as a response to the disease. The restrictions imposed by the government have been especially focussed on controlling the flow of foreign nationals entering the country. This has led to a decrease in the number of expats that are able to and willing to move to or stay in Saudi Arabia.
According to a 2019 report from the General Authority for Statistics, the number of expatriates in Saudi Arabia was around 13.5 million, representing around one third of the total population. However, this has decreased considerably due to the imposed restrictions. The policy change, combined with other factors such as the oil crash, has had a very significant economic impact on the country, as it is reducing foreign investment and preventing the repatriation of knowledge and experience.
The pandemic has forced the organisation of events such as conferences and trade shows to be virtualized. This means that businesses are unable to gain market insights in person while networking face to face. The lack of such events has made it difficult for investors to access the information they need to make decisions, creating a climate of insecurity.
As a result, it has become increasingly difficult for foreign nationals to obtain visas and residency permits, meaning the chances of being able to enter and stay in Saudi Arabia have diminished. Many expats living in the country have chosen to return home, while others are reluctant to move to the kingdom due to the current uncertainties.
The impact of the new labour law
The Saudi government has also been introducing a new labour law in order to reduce the reliance on foreign labour and increase the number of jobs available to Saudi nationals. The new ‘Nitaqat’ law puts quotas on the percentages of foreign and Saudi workers any company is allowed to have, as well as introducing new requirements for companies such as the payment of a minimum wage. The implementation of the law is likely to lead to the displacement of many expatriates working in the country.
The effect of the Nitaqat law will be long-lasting, as it will make it more difficult for foreign nationals to obtain visas and residency permits. This includes those expatriates that had left the country temporarily and now find themselves unable to return. The new law is having a significant economic impact on companies as it is making it more difficult to hire the personnel they need.
Furthermore, the new regulations are also a cause of concern for expats already living in the country. This is because the regulations are likely to further reduce the already limited job opportunities available to them. Additionally, they may also face difficulties when it comes to finding adequate housing and other essential services.
On the other hand, the new law is providing much needed job security for Saudi citizens. In addition to providing more jobs, it is also helping companies to become more competitive as they can now access a larger pool of skilled professionals.
The future of expats in Saudi Arabia
The current restrictive measures to entering the country mark a new chapter in the history of foreign residents moving to Saudi Arabia. As a result, many expats are left feeling uncertain about their future in the country. Nevertheless, it is important to bear in mind that regulations change constantly and it is possible that, in the future, the policies will become more flexible.
A more liberal approach by the Saudi government could be beneficial for businesses, as they can now access a larger pool of skilled and talented professionals. Expats can also benefit from an improved economy, one that provides more job opportunities for them. Moreover, the country is still considered a safe haven, and the companies that expats work for are usually willing to provide relocation services and other benefits to encourage them to stay in Saudi Arabia.
Whatever the future holds, it is clear that the Kingdom of Saudi Arabia remains a country of opportunity. Although the instability created by the current regulations is causing difficulties for expats in the short term, the country remains attractive for foreign nationals in the long-term.
The political backdrop
In the last few years, Saudi Arabia has seen huge political and social changes. The country’s crown prince Mohammad bin Salman has pushed for numerous reforms as part of the Saudi Vision 2030, a developmental plan that aims to create a more economically and socially balanced country. This has led to the development of new economic opportunities and an improved business climate.
The new educational system provided by the Vision has also made the country more attractive for foreign residents. According to the Saudi Ministry of Education, there are now six English speaking international schools in the country. This makes it easier for expatriates to obtain a high quality education for their children.
Additionally, the recent reforms have made it easier for residents to obtain licenses, open businesses and invest in property. This has made the country much more attractive to foreign nationals and expats, as they are now able to stay in the country for longer and benefit from the new opportunities available.
The Saudi culture
Despite its conservative culture, Saudi Arabia has become increasingly open to outside influence.The traditional values are still very rooted in the culture, but the country now provides a more diverse and modern environment for foreign nationals and expats. This means that the country is now much more welcoming and accepting of foreign residents.
The social and cultural diversity provided by the influx of expats has been widely welcomed by locals. This is due to the fact that the country is now able to benefit from the knowledge and experience of foreign nationals in areas such as medicine, engineering and education. As a result, the country is now much more open to the idea of foreign residents and expats.
In addition to this, Saudi Arabia also provides a safe and secure environment for foreign residents, as it is one of the most religious countries in the world. Most of the laws are based on Sharia law, a system of Islamic legal regulations that aim to create a safe and respectful environment for all.
Conclusion
As the world enters a new era of globalisation, Saudi Arabia is beginning to open its doors to foreign residents. In spite of the current restrictions, expats remain welcome in the country, with the Saudi government and society becoming increasingly open and accepting. The foreign nationals and expats that are able to undertake the legal requirements are in a unique position to gain access to new job opportunities, as well as to benefit from the recent political and social changes the country has undergone.
