Comprehensive Business Support & Administrative Solutions

LOCALIZATION SERVICES

What is localization ?

  • Adherence to local requirements and conditions and regulations needed for businesses to conduct work in and within KSA.
  • The business scope of an establishment is a critical factor in determining some of the requirements for workforce localization and compliance with labour regulations in Saudi Arabia.

This includes two primary types of labour localization:

Saudization (Nitaqat):

  • This policy mandates that a specific percentage of jobs within an establishment be filled by Saudi nationals.
  • The required percentage varies based on the industry, company size, and job category, as determined by the Ministry of Human Resources and Social Development (MHRSD). Which can be changed and updated regularly.

Localization of Professions (for Expatriates):

  • Certain specialized professions are restricted to Saudi nationals, while others may be filled by qualified expatriates holding valid professional licenses, at certain percentage only.
  • The eligibility and employment of expatriates are subject to professional certification requirements and the issuance of appropriate work permits.

Succeeding in the Saudi Market: Opportunities, Challenges & the Role of Localization

The Strength of Saudi Arabia’s Job Market boasts one of the strongest and fastest-growing economies in the region, driven by Vision 2030, which aims to diversify the economy and attract foreign investment. Focus on workforce localization government programs and their ever-changing environment created challenges which needs to be addressed.

Challenges for Foreign Companies to comply with:

  • Mandatory Workforce Localization (Saudization) – Compliance with Nitaqat Program quotas.
  • Navigating Local Regulations – Adhering to labour laws, government procedures, and licensing requirements.
  • Cultural, language barrier & Business Differences – Adapting to local business etiquette, work culture, and communication styles and expectations.

Why Localization is Essential for Business Success?

  • Failure to meet localization requirements can result in fines, license suspensions, and operational restrictions. However, aligning with local regulations ensures business continuity, sustainable growth, and a strong market presence in Saudi Arabia.
  • With the right support and a strategic localization approach, foreign companies can thrive in the Saudi market and focus on growing their business

Impact of Non-Compliance with Business Scope Regulations

Failure to comply with business scope regulations, including Saudization (Nitaqat) and workforce localization requirements, can significantly impact the operations of a company in Saudi Arabia:

Downgrade in Nitaqat Category

Hiring Restrictions for Non-Saudis

Financial Penalties

Suspension of Government Services

Operational Disruptions

SMSC Services help your company in localization

  • We provide end-to-end Administrative services to ensure compliance, efficiency, and seamless workforce management, covering wide spectrum of requirements from employee onboarding to payroll and regulatory obligations.
  • Our integrated solutions help businesses streamline operations, maintain full compliance, and minimize risks, ensuring smooth and efficient workforce management.
  • Our Approach of creating a universal pool that have the capability to provide multiple services to more than one client will reduce cost of operation of each individual company for the same.
  • Multiple packages to select from to suite your company requirements.
  • Information separation and restrict measures to ensure information privacy and separation within the pool.

HR Services Package

1

Work Permits, Residency & Health Insurance

  • Iqama Issuance & Renewal – Managing documentation, mandatory health insurance, profession licensing, and updates.
  • Health Insurance & Iqama Link – Residency issuance and renewal require valid health insurance, making it a key compliance factor.
  • Contract third parties for Medical Check-Up for Non-Saudi Employees – Conducting mandatory medical exams as part of the iqama issuance process.
  • Visa Services – Work visas, visitor visas, visa letters, medical tests, and visa stamping.
2

Employment & Contract Management

  • Employment Contracts (Qiwa & GOSI) – Drafting, negotiating, and registering contracts for Saudi employees.
  • Saudization (Nitaqat)– Managing localization quotas, workforce balancing, and compliance with nationalization policies.
3

Governmental Compliance & Payroll Management

  • Governmental Platform Management : Tracking and processing invoices for regulatory subscriptions.
  • Payroll & Mudad Compliance : Submitting the mandatory payroll report to the Mudad platform as required by the Ministry of Human Resources to ensure compliance with salary payment regulations.
  • Employee Attendance & Leave Tracking : Monitoring work hours, official holidays, and annual leave.
  • Compensation & Deductions : Handling employee benefits, reimbursements, and salary adjustments.4. Exit & End-of-Service Procedures
  • Exit & Re-Entry Visas : Managing visa issuance and tracking employee travel permissions.
  • End-of-Service Processing : Ensuring smooth contract termination, final settlements, and company policy compliance.

HR recruitment Support Services Package

Local market skilled recruitment search:

  • Searching local market for specific set of skills and criteria and build a data of candidates' CVs
  • Help and support Client HR proactively by recruitment for Saudi national localization requirements.
  • Help client to establish and Identify the salary range and required packages for his plans and financial budgets.
  • Contact and conduct initial interviews with candidates.
  • Arrange interviews between candidates and clients.
  • Negotiate hiring contract on behalf of the client.
  • Issuance of job offers and following up.
  • Transfer of documents to client HR
  • Integrated with HR ,No monthly or fixed fee, pay on succuss

Optional Business Support Services and Packages

We provide a range of integrated optional services to help businesses enhance efficiency, ensure regulatory compliance, and focus on growth while we handle operational and administrative tasks.
Accounting Support
Banking Support
Insurance Support
IT Service Support
Office Setup & Licensing
Workspace Solutions
Event & Travel Management
Logistics and travel Booking
Register in Etimad platforms and following up potential projects.
Company Registration & Management of Commercial Registration