Saudi Arabia is rapidly becoming a key destination for Chinese enterprises expanding into the Middle East.
With its Vision 2030 driving energy transition, infrastructure upgrades, and digital economy growth, the Kingdom presents a uniquely attractive strategic landscape.
However, opportunities come hand in hand with challenges — from complex visa regulations to strict employment compliance.
Questions such as how to legally deploy staff, comply with Saudization policies, and manage labor costs have become central to successful market entry.
To help companies anticipate potential compliance risks and establish a solid foundation in Saudi Arabia, SmartDeer hosted its 27th Global Mobility Webinar:
“Going Global: How Can Chinese Enterprises Seize Opportunities in Saudi Arabia?”, featuring SmartDeer Global Mobility Specialist Xiting Chen and Overseas Project Director Carina Zhang, who shared professional insights and practical guidance.
Xiting Chen — A global mobility consultant specializing in HR strategies for enterprise globalization.
She has extensive experience in cross-border recruitment and workforce management, with a strong focus on the Saudi and broader Middle East markets.
Over the years, she has helped numerous Chinese enterprises establish operations, handling key challenges from work visa processing and compliance to cross-cultural team management.
Carina Zhang — With over 12 years of experience in HR solutions and international recruitment, Carina has worked with Fortune 500 companies and leading HR consultancies, leading projects across Europe, the Middle East, and Southeast Asia.
She specializes in building localized teams for multinational enterprises and delivering compliant, efficient global HR solutions.
🌍 Why Choose Saudi Arabia? According to Xiting Chen, Saudi Arabia is not only the largest economy in the Middle East but also a central stage for global energy transformation and industrial upgrading.
Key Advantages:
Policy & Incentive Benefits: The Saudi government is offering strong financial and tax incentives to attract foreign investment and diversify its economy.
Blue Ocean Opportunities: Compared with highly competitive Southeast Asia or the mature Western markets, Saudi Arabia still offers vast potential in sectors like renewable energy, advanced manufacturing, and cultural tourism.
Strategic Location: Connecting Asia, Europe, and Africa, Saudi Arabia serves as a crucial hub for the Belt and Road Initiative.
“For specialized work visas, changing employers without notifying the immigration office is considered illegal employment. Both the company and the employee will face legal consequences.” — Xiting Chen
💡 Which Companies Are Best Suited to Enter the Saudi Market?
Enterprises most likely to succeed in Saudi Arabia often share the following traits:
Operate in sectors prioritized by the Saudi government (e.g. renewable energy, healthcare, digital transformation);
Have the capability to partner with government or large-scale projects;
Focus on long-term investment and are willing to allocate sufficient resources;
Seek global tax and cost advantages.
🧾 Key Insights and Misconceptions About Saudi Work Visas “Registering a company ≠ having a work visa quota.”
Chen emphasized that companies must plan visa quotas in advance and include this in their initial business plans. They must also comply with the Saudization Policy (Nitaqat) to ensure legal employment ratios. Required materials include degree authentication, health certificates, criminal record clearance, and business insurance.
⚙️ Challenges and Practical Solutions From the recruitment perspective, Carina Zhang highlighted several pain points in the Saudi market:
Talent Shortage: High-skilled local talent is limited, leading to longer recruitment cycles;
Cultural Differences: Management styles must adapt to local customs and religious norms;
The Power of “Wasta”: Business success often relies on personal networks and trust.
Her advice: Companies should adopt a “core expatriate + local recruitment” hybrid model during early expansion stages and leverage EOR/HRO services to mitigate employment and compliance risks.
✅ SmartDeer’s One-Stop Global Expansion Solution SmartDeer empowers enterprises with a localized in-house team + integrated EOR/HRO service model, covering:
Work visa processing and compliance management
Local recruitment and team building
Cost optimization and policy consultation
Understanding local laws and cultural nuances — and leveraging professional HR solutions — is key to a successful overseas landing.
📅 What’s Next? SmartDeer will continue to track global mobility trends and host more in-depth sessions on overseas expansion. To join our next webinar or learn more about Saudi market entry, scan the QR code below to connect with your dedicated consultant.
Scan the QR Code Above ｜ Add Your Dedicated Consultant ｜ Learn More About the Session
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