Envoy Global’s 2024 EMEA Trends Report sheds light on the immigration landscape across the region for employment-based immigration.
In the Middle East, we surveyed HR professionals specializing in corporate immigration or global mobility to get their sentiments on some specific country’s immigration systems, global immigration trends, corporate best practices and more. Of the individuals surveyed, nearly half report working in Finance and Professional Services.
Here’s what we found.
Employers are Eyeing the Middle East as a Hotspot for Immigration
Our report shows that 89% of employers surveyed want to send their employees to the Middle East to scout out the markets with the potential goal of setting up offices there.
Employers view Middle East talent mobility favorably, but some areas are particularly conducive for business and favorable for foreign workers.
Saudi Arabia is Appealing for Establishing Entities
Saudi Arabia is especially attractive to employers. When asked if their company has considered opening an entity in Saudi Arabia, 46% of respondents said yes. An additional 44% said they planned to eventually open an entity in Saudi Arabia. Only 10% didn’t have imminent plans to open an entity in Saudi Arabia.
Employers Are Establishing Headquarters in Saudi Arabia
Forty-three percent of respondents said they have either moved their regional headquarters to Saudi Arabia already or are considering moving their headquarters there in the future to benefit from government incentives and bridging proposals.
Bridging proposals allows companies to hire and retain foreign national workers and remain compliant even if government policies change.
Forty-three percent of employers are considering changing the formation of their company to benefit from the incentives above and 35% say they’re currently changing their company’s formation for the same benefits. Others (13%) have already changed their company’s formation for government incentives.
Immigration and Business Challenges in the Middle East
Although employers view Middle East immigration policies favorably, they also cite challenges. One is “Saudization,” which requires businesses to have a certain percentage of Saudi nationals in their workforce. Most employers surveyed (47%) lament that Saudization imposes restrictions on employing foreign nationals in Saudi Arabia, which moderately impacts their company’s hiring practices.
Forty percent say that Saudization poses “significant” challenges to hiring foreign nationals, and it also limits recruitment options within Saudi Arabia. Fewer (13%) see minimal impacts from Saudization. Those employers report fewer issues hiring foreign nationals due to Saudization, and they have flexible hiring practices.
Aside from Saudization, employers note other challenges with operating in the Middle East, with 67% citing salary competition with other markets. Additionally, 61% say they encounter challenges with quota requirements or employee-to-foreign national employment ratios.
The Impacts of Stricter Diversification Policies
We also surveyed employers about challenges they might face if Middle Eastern governments introduced stricter policies, with a focus on cultural diversification. Close to half of all employers felt stricter diversification policies would significantly impact their company’s recruitment process. Some said stricter cultural diversity mandates would mildly impact their foreign talent recruitment process and others felt their workforce was already sufficiently diverse.
The Benefit of Long-Term Visas
While employers face challenges recruiting foreign talent, long-term visa options, such as the Golden Visa, have helped attract and retain more foreign talent. Our survey shows that 66% of workers with a Golden Visa have higher retention rates than other types of visas. Twenty-five percent of employers say that retention rates were equal with workers on Golden Visas and regular visas.
Employers Are Utilizing Remote Work Visas
Remote work visas have gained popularity around the globe since the COVID-19 pandemic. The UAE launched a remote work visa in 2022 that allows foreign workers to live and work in the UAE while retaining employment status abroad. Based on our survey results, the UAE remains a desirable remote work location.
Learn More About Talent Mobility in the EMEA Region
While we surveyed employers in the Middle East in our first annual EMEA Trends Report, there’s much more to discover in our comprehensive 84-page report. The Envoy Global Middle East team has a wealth of knowledge and experience to help you navigate challenges and pursue opportunities in the region.
Contact us for more insights and to streamline your immigration processes across the EMEA region.
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