Expanding into Saudi Arabia is on every company’s radar right now — and for good reason. The Kingdom is moving faster than almost any market in the region, fuelled by Vision 2030, massive infrastructure investment, and a growing demand for global expertise.
But there’s one challenge every new entrant faces: hiring talent quickly and compliantly without an entity.
That’s where the Employer of Record (EOR) model comes in. For businesses eager to test the market or kick off projects before their entity paperwork clears, an EOR can help you hire in days instead of months, without taking shortcuts on compliance.
In this playbook, we’ll explain exactly how that works — and how Auxilium helps companies build their Saudi teams fast, safely, and strategically.
Why Employer of Record in Saudi Arabia Is Suddenly in Demand
Over the past few years, the Saudi government has made major strides in modernising its labour system. Platforms like Qiwa, Mudad, and GOSI have digitised everything from payroll reporting to visa applications. At the same time, Saudization (Nitaqat) requirements are rising, pushing employers to stay within strict compliance limits.
This progress, while positive, has also made the system more complex for newcomers.
Setting up a local company in Saudi Arabia means navigating several steps: securing a MISA investment license, obtaining your Commercial Registration (CR), opening a bank account, and registering with ZATCA, GOSI, Qiwa, and Mudad before you can even think about hiring.
Realistically, that process can take six to eight weeks — sometimes longer if banking KYC takes time. And for organisations trying to seize an opportunity now, that’s simply too slow.
An Employer of Record (EOR) changes the equation. Instead of waiting for your entity to be ready, an EOR becomes the legal employer of your Saudi team on your behalf. They issue Arabic contracts, handle payroll through WPS/Mudad, manage GOSI, and take care of visa sponsorship — while you retain full control of your people’s day-to-day work.
It’s not a shortcut. It’s the smart bridge between your current global structure and your future Saudi entity.
The Reality of Compliance in Saudi Arabia (and How EOR Simplifies It)
Saudi labour law is precise — and enforcement has only tightened in recent years. Missed wage filings or late payments can lead to penalties or even suspension of services on Mudad.
That’s why compliance can’t be treated as an afterthought. Here’s how an EOR handles the complexity on your behalf:
- Arabic employment contracts: By law, the Arabic version of the employment contract prevails. EORs issue fully compliant contracts that include the latest statutory terms, from probation to notice periods.
- Payroll & WPS filings: Every salary must pass through the Wage Protection System via Mudad. The EOR ensures wages are paid accurately and on time, protecting your business from service suspensions.
- Social insurance (GOSI): All employees — Saudi and eligible expatriates — must be correctly registered in GOSI. Your EOR calculates and submits monthly contributions automatically.
- End-of-Service Benefits: KSA mandates severance equal to half a month’s wage per year for the first five years, and a full month thereafter. EORs manage this accrual and payout seamlessly.
- Saudization compliance: The EOR monitors your workforce ratios under Nitaqat to maintain “green” status and safeguard visa eligibility.
In short, an EOR absorbs the operational and legal complexity so you can focus on building your business, not deciphering labour law.
Speed to Market: EOR vs Entity Setup
Time is often the biggest competitive advantage.
When you form your own entity, you’re looking at a full sequence of steps: MISA license → Commercial Registration → Chamber of Commerce → bank account → tax and social registrations → visa quota allocation. Each step depends on the one before it, and each adds time.
Even in an ideal scenario, that timeline stretches to four to eight weeks before you can legally hire and pay staff.
With an EOR, you skip the waiting period. Because the EOR already has a licensed entity, a connected payroll system, and active WPS registration, your first hire can be onboarded in a matter of days.
For a business landing its first project, that speed can be the difference between winning or missing a market opportunity.
Importantly, EOR isn’t meant to replace entity formation. It’s a fast-track solution, a way to begin hiring, test market viability, and establish local presence while your company setup continues in parallel.
Understanding Visa Options Under EOR
Hiring in Saudi Arabia also means understanding which visa category fits your situation.
For long-term roles, the EOR will typically sponsor the employee’s Employment Visa (Iqama), which provides residency and work rights in the Kingdom. The EOR manages all documentation, medicals, insurance, and renewals.
For short-term projects, there’s the Temporary Work Visa (TWV) — valid for 90 days and extendable for another 90. It’s processed via Qiwa and is ideal for assignments that are time-bound.
Auxilium’s team reviews each role and project before onboarding to confirm which path is most appropriate, ensuring visas align with both Saudi regulations and your project duration.
How Auxilium’s EOR Model Works in Practice
Auxilium’s process is designed to get your hires productive fast while maintaining total compliance. Here’s how it typically unfolds:
1. Mapping your needs – We start by understanding your hiring goals, compensation structure, and timelines, while assessing visa eligibility and Saudization impact.
2. Contracting & offers – Employment contracts are drafted in Arabic and reviewed for compliance with Saudi labour law, including clear probation and notice terms.
3. Onboarding & registrations – We handle all payroll, GOSI registration, and WPS/Mudad setup, ensuring your employees are paid on schedule and reported accurately.
4. Visa sponsorship – Auxilium manages the visa process end-to-end, from application to final issuance, ensuring workers arrive ready to operate legally.
5. Payroll & compliance management – Every month, we process payroll, submit GOSI and WPS filings, track leave, and maintain full transparency over costs.
6. Offboarding or transition – When your Saudi entity is ready, we support a smooth transition from EOR employment to your new local payroll, with continuity of benefits and service records.
It’s a full-circle solution that keeps you compliant at every step — and makes scaling your Saudi team simple, predictable, and risk-free.
Real Results from the GCC
Auxilium’s track record across the Gulf is defined by speed and precision.
For one global infrastructure client, we mobilised a Saudi project team in under two weeks while their MISA license was still in process. Compliance remained flawless — payroll, WPS, and Saudization ratios all stayed “green.”
Another engineering consultancy facing rapid growth risked falling below Nitaqat compliance. Our local team audited their labour file and adjusted hiring ratios, restoring their green classification and avoiding government suspension.
Across the GCC, from Saudi Arabia to Bahrain, Qatar, and the UAE, we’ve helped clients hire hundreds of employees compliantly, without losing a single day to administrative delays.
Should You Choose EOR or a Company Setup?
There’s no one-size-fits-all answer. The right path depends on your business goals.
EOR makes sense when:
- You need to hire quickly for a project or early market entry.
- You’re testing feasibility before investing in a full entity.
- You want to stay compliant without navigating new regulatory systems.
Entity formation makes sense when:
- You’re committed to a long-term, permanent presence.
- You’ll need to issue invoices locally or tender for government contracts.
- You want full control of banking, payroll, and visas at scale.
The best strategy often combines both. Start with an EOR to move quickly, then transition to your entity once it’s live, with the EOR managing a seamless handover so your operations never pause.
How to Launch Hiring in Saudi Arabia with an EOR
Hiring in Saudi Arabia doesn’t have to be a slow or complicated process — even if you don’t yet have a local entity. With an Employer of Record (EOR), you can move from interest to action in just a few days. The key is understanding how the process works and what steps to take to stay compliant from day one. Whether you’re hiring your first local employee or deploying a full project team, a structured EOR onboarding plan ensures every contract, payroll cycle, and visa aligns perfectly with Saudi labour law — allowing your business to get up and running faster, without the administrative bottlenecks of traditional company setup.
Getting started is more straightforward than most expect:
- Define the roles, locations, and salary bands you need.
- Choose your visa path — long-term (Iqama) or temporary (TWV).
- Sign an EOR service agreement to formalise the partnership.
- Issue offers and compliant Arabic contracts.
- Auxilium registers your employees for GOSI and WPS/Mudad.
- Payroll and visas are processed — and your team can begin working.
In just a few steps, your Saudi team is live, legal, and fully supported.
Why Work with Auxilium
Auxilium is not a global aggregator. We’re specialists, focused on the six GCC countries: Saudi Arabia, UAE, Kuwait, Oman, Bahrain, and Qatar.
For over 20 years, our team has managed the real-world details of employment in the Gulf, from payroll and visa processing to end-of-service management and Saudization planning.
That depth of regional expertise means we know every system, every update, and every challenge that can derail compliance. And we make sure none of them slow you down.
If your business is ready to grow in Saudi Arabia — but you don’t yet have an entity — an Employer of Record lets you start today.
Auxilium’s EOR service manages Arabic contracts, payroll, WPS/Mudad reporting, GOSI contributions, visa sponsorship, and end-of-service obligations, so your team can focus on performance, not paperwork.
Let’s talk about your Saudi hiring goals and build a compliant, scalable plan that fits your timeline.
