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IMPACT – HIGH
What is the change? Saudi Arabia is now requiring that employers place jobs ads on the new national labor portal to make sure that they have attempted to hire local candidates before applying for visas for foreign workers.
What does the change mean? Employers should be prepared for the additional time and effort required to place ads and complete labor-market testing procedures.
Background: Job openings must be advertised for local candidates, however the ads’ durations have not been set by authorities. If a position cannot be filled by a local applicant, the job ad will be converted to a block visa application to be filled by a foreign candidate.
BAL Analysis: The new job advertising requirements are part of Saudi Arabia’s move toward greater localization of its workforce and the launch of Taqat, a national labor database and central portal for all labor-related services, including connecting employers and job seekers. Employers should be prepared to keep records regarding their job advertisements and local candidates who are considered and rejected.
This alert has been provided by the BAL Global Practice group and our network provider located in Saudi Arabia. For additional information, please contact your BAL attorney.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
IMPACT – MEDIUM
What is the change? U.S. nationals are now exempt from a recently introduced requirement that visitors purchase medical insurance during the visa application process.
What does the change mean? The insurance purchase step has been removed for U.S. citizen applicants during the online application process.
Background: The Saudi government introduced the mandatory insurance purchase last month for all short-term visitors. During the online application process, applicants must purchase an approved insurance policy before submitting their visa application. The purpose of the rule is to cover foreign visitors for emergency care or injuries during their stay. After receiving significant feedback from U.S. national travelers and their U.S.-based employers, Saudi authorities have granted U.S. nationals an exemption from this requirement.
BAL Analysis: The exemption removes a step and a cost in the visa process for U.S. nationals and family members making short-term visits to Saudi Arabia.
This alert has been provided by the BAL Global Practice group. For additional information, please contact your BAL attorney.
What is the change? Short-term visitors applying for visas to Saudi Arabia are being required to purchase an insurance policy during the online “Enjaz” registration process. The new requirement is expected to be rolled out globally, and currently covers applicants in Canada, the United States and the United Kingdom who are applying for visitor visas, including business, commercial visit, work visit and family visit visas. The rule does not currently affect individuals applying for long-term visas such as employment visas or residence permits.
What does the change mean? Employers and individuals applying for any type of visitor visa should plan for the additional expense of purchasing the policy before submitting their application to a Saudi consulate. The government fees for the insurance policy will depend on the applicant’s biographical information, and range from US $100 to $300.
Background: The new policy has introduced through the online Enjaz government registration process, a prerequisite to the visa application process.
During the online registration, applicants for short-term visits will be directed to enter their biographical information and to purchase an insurance policy. The price will be determined by the Enjaz system and will vary depending on the applicant’s nationality, duration of stay and other biographical information. The policy is intended to cover emergency hospitalization, accidents and other bodily injury.
BAL Analysis: Business and family visitors to Saudi Arabia should factor in the additional government insurance fee when planning short-term stays.
What is the change? In April, the Saudi Cabinet approved Vision 2030, a comprehensive 15-year plan to diversify the economy, reduce reliance on oil, attract foreign investment and create jobs. The plan contains proposals relevant to foreign business visitors and expatriate workers.
What does the change mean? Among the proposals related to immigration, the government would introduce sector-based special zones, including a financial special zone with visa exemptions, and would build a more robust tourism sector with improved visa procedures for visitors. The deputy crown prince has also publicly announced that a residency permit system similar to the U.S. green-card system will be developed within five years.
Background: The fall in oil prices has spurred the government to develop other areas of the economy to make up for budget shortfalls. Vision 2030 contains some bold promises, such as privatizing government services, offering stock shares in a portion of Saudi Aramco, increasing women’s participation in the workforce to 30 percent and reducing unemployment to single digits. The plan recognizes that improving the business environment will help attract foreign investors.
BAL Analysis: The immigration-related ideas are intended to make the kingdom’s policies more conducive to foreign investment and tourism revenue. BAL is following Vision 2030 and will report changes as the government releases additional details.
What is the change? Saudi Arabia has set new penalties for visitors who overstay their visas.
What does the change mean? A foreigner who overstays any type of visit visa will be fined up to 50,000 riyals (about US$13,300), jailed for up to six months and then deported. The same penalties apply to anyone who assisted in obtaining the visa.
Background: The General Directorate of Passports, or Jawazat, announced new rules that set progressive fines and imprisonment for each overstay. A first offense will result in a fine of 15,000 riyals. A foreigner who overstays a visit visa a second time will be fined 25,000 riyals and imprisoned for three months. A third overstay will be punishable by a six-month jail term, a 50,000 riyal fine, and deportation. A five-year ban on re-entry is also imposed following deportation; however, authorities have discretion to deny visas and impose a lifetime ban even after a first offense.
BAL Analysis: Foreign employees and family members traveling to Saudi Arabia on visit visas should be sure to leave the country upon expiration of their visa.
What is the change? Due to a software update, all Saudi consulates in the U.S. are unable to print visas.
What does the change mean? While the consulates work to fix the problem, employers and visa applicants should plan for delays in issuance of visas due to the technical issues as well as the holiday weekend.
Background: The software issue began Wednesday and has not been resolved as of Friday afternoon. The Saudi Consulate in Houston has confirmed that the outage is affecting visa printing nationwide.
BAL Analysis: Applicants should anticipate delays and a possible backlog when visa issuance resumes.
What is the change? Foreign nationals applying for visas at Saudi Arabian embassies and consulates have encountered new documentation requirements and restrictions on how long visa applicants, particularly women, can remain in the country.
What does the change mean? Foreign nationals should apply for visas early, expect delays, anticipate requests for additional documentation and be as flexible as possible in their travel plans.
Background: In recent weeks, Saudi embassies and consulates have made a number of changes in practice affecting foreign nationals traveling to the country. Examples include: frequently changing supporting documentation requirements, including requests for new or reformatted letters of intent; reducing the permissible duration of stay for women applying for visas to 90 days; and refusing applications from expatriates applying for stays of more than 30 days. Policies and practices may vary from consulate to consulate, and business travelers may need to be flexible in responding to requests.
BAL Analysis: Visa applicants are advised to submit applications as early as possible and be prepared to respond to requests for additional or reformatted documentation. If possible, visa applicants should submit applications at consulates in their home countries in order to avoid additional restrictions.
What is the change? Saudi Arabia’s King Salman has extended the Eid al-Adha holiday through Oct. 3.
What does the change mean? Government offices will reopen Sunday, Oct. 4 – not this week as originally planned.
Background: Government offices in countries throughout the Muslim world were closed for the Eid al-Adha holiday. Saudi Arabia had originally planned to observe the holiday from Sept. 20 to 27, but King Salman subsequently ordered its extension. Government offices are now scheduled to remain closed for the rest of the week, reopening Sunday.
BAL Analysis: Anyone in need of immigration or other government services in Saudi Arabia should take note of the holiday’s extension and prepare for possible delays when offices reopen.
What is the change? Saudi Arabia has placed 19 jobs off-limits to foreign nationals, as the country continues its efforts to boost Saudi employment in its economy.
What does the change mean? Saudi Arabia will not issue work permits to foreign nationals applying for any of the 19 jobs, including positions as heads of human resource or personnel departments, employment clerks, receptionists and cashiers. Foreign nationals holding jobs now reserved for Saudi nationals will not be issued renewal work permits and may be laid off or forced to switch to new jobs.
Background: Saudi Arabia is in the midst of a years’ long Saudization campaign to boost Saudi employment in the private sector of the country’s economy. The country has set up a system whereby companies employing a higher percentage of Saudi employees enjoy certain perks, such as easier visa and work permit processing. Companies with lower percentages of Saudi employees have more difficulty getting visas or work permits for employees and, in some cases, may not be able to do so at all.
Earlier this month, the Saudi government placed 19 jobs completely off-limits to foreign nationals. Jobs that landed on the list include chief human resources administrator, personnel department head, labor affairs director, employment clerk, timekeeper, receptionist (including hotel and hospital receptionists), cashier and typist.
BAL Analysis: The change to place some jobs off-limits to foreign nationals is consistent with Saudi Arabia’s efforts to boost Saudi employment in the economy. Companies should be sure to adhere to the new requirements, as those who violate Saudization rules may find it more difficult, if not impossible, to recruit foreign employees when needed.
What is the change? Saudi Arabia has lifted a ban on Swedish business travelers. What does the change mean? Swedish nationals can once again apply for business and work visas to Saudi Arabia.
Background: In the midst of a diplomatic dispute, Saudi Arabia suspended issuance of business and work visas to Swedish nationals in March. The move came after Sweden ended a defense agreement with the Kingdom. Riyadh responded by recalling its ambassador and instituting the travel ban. The ban was recently lifted.
BAL Analysis: The change is good news for companies employing Swedish personnel. Swedish nationals are eligible to apply for and obtain business and work visas immediately.