Living in Saudi Arabia as an Expat: Riyadh, Jeddah and Vision 2030

Saudi Arabia is undergoing one of the most rapid social and economic transformations of any country in the world. Vision 2030 — the Crown Prince's programme to diversify the Saudi economy away from oil dependency — has opened the kingdom to international tourism, entertainment, sport, and a broader range of expatriate professionals than ever before. Women can now drive, attend concerts, and operate businesses. Live entertainment is normalised. The social environment has changed measurably.

For the right professional profile, Saudi Arabia remains one of the most financially rewarding postings available. Zero income tax, high compensation packages, and subsidised accommodation in secured compounds combine to produce savings rates that are difficult to replicate elsewhere.

Where to Live

Riyadh is the capital and the country's economic and political centre. It is a large, modern, expanding city — sprawling rather than compact, with an absolute reliance on private cars. The principal residential areas for expatriates are:

• Diplomatic Quarter (DQ): a semi-autonomous zone in northwest Riyadh housing embassies, international schools, and well-appointed residential housing. Comfortable, well-maintained, with recreational facilities and a relatively relaxed internal social environment.
• Compounds: most corporate expats live in one of Riyadh's many private residential compounds — gated communities with Western-style houses, swimming pools, gyms, communal facilities, and a social calendar. Compounds provide a degree of cultural and social normalcy not available in ordinary Saudi residential areas. Leading compounds include Seder, Desert Palms, Nakheel Palace, and Granada compounds. Compound living is typical for corporate packages; accommodation is usually provided by the employer.

Jeddah is the kingdom's commercial gateway to the Red Sea coast and significantly more cosmopolitan than Riyadh. Its historic Al-Balad district (UNESCO World Heritage) and the vibrant Corniche give it a character quite different from the inland capital. The expatriate community here skews towards trading, logistics, and the Jeddah Islamic Port. Jeddah is generally considered more relaxed in social terms than Riyadh.

Khobar/Dhahran/Dammam in the Eastern Province is the hub of Saudi Arabia's oil industry — Aramco's headquarters is in Dhahran. This area has one of the longest-established Western expatriate communities in the kingdom; the Aramco compound in Dhahran is essentially a self-contained American-style town with golf courses, schools, and recreational facilities.

Visas and Residency

Saudi Arabia's immigration system is undergoing reform as part of Vision 2030. Traditional entry was exclusively tied to a sponsoring employer or Saudi national (the "kafala" sponsorship system). The kafala system has been partially reformed, though it remains the basis for most work visas.

Iqama (Residence Permit): the standard mechanism for working expatriates. Tied to an employer sponsor. The Iqama is required for all daily transactions — opening a bank account, registering a car, accessing healthcare. It must be renewed annually or biannually.

Premium Residency (Permanent Iqama): launched in 2019, Saudi Arabia's premium residency programme allows qualifying foreign nationals to obtain a form of long-term residency not tied to an employer. The two original products remain available:

• Permanent Premium Residency: one-time fee of SAR 800,000 (approximately GBP 170,000). Permanent right of residence; ability to work without employer sponsorship; ability to invest and own property (in certain categories).
• Annual Premium Residency: renewable annually at SAR 100,000/year.

In January 2024 the programme was expanded with additional categories — including Special Talent, Gifted, Investor, Entrepreneur, and Real Estate Owner residencies — several of which carry lower or salary-linked qualifying thresholds rather than the headline fees above. Premium residency holders gain significant practical freedom compared to ordinary Iqama holders. The programme is targeted at HNW investors, executives, and globally mobile professionals, and demand has been strong.

Investor Visa (Foreign Investment): through the Ministry of Investment (MISA), foreign businesses and investors can obtain licences to operate and live in Saudi Arabia. This route is relevant for HNW individuals establishing a Saudi business presence.

Taxation

Saudi Arabia has no personal income tax. This is one of the most material financial advantages of the posting. Expatriates pay:

• Zakat: payable by Muslim Saudi nationals on wealth; not applicable to non-Muslim expatriates.
• VAT: 15% on most goods and services (raised from 5% in 2020).
• Social insurance: GOSI (General Organisation for Social Insurance) pension and unemployment (SANED) contributions apply to Saudi national employees. For expatriate employees, only the occupational-hazards branch applies — a 2% contribution paid entirely by the employer, not deducted from the employee. (The 2026 social-insurance reforms and contribution increases apply to Saudi nationals, not to expatriates.)

UK nationals working in Saudi Arabia remain subject to UK tax obligations if they retain UK tax residency. The UK statutory residence test's provisions around overseas workdays and split years are relevant for secondments. Saudi Arabia does not have a comprehensive double tax treaty with the UK (it has a limited arrangement). UK professionals on Saudi postings should take UK tax advice before departure to establish a clean break from UK residency if appropriate.

Compound Living and Daily Life

Compound living is the defining social experience for most Western expatriates in Saudi Arabia, particularly in Riyadh. Inside the compound walls, dress codes are relaxed, alcohol rules are theoretically absent (alcohol remains officially prohibited throughout the kingdom, though the reality is nuanced — home brewing historically occurred; enforcement has shifted), and a community of like-minded families creates a social environment that can feel surprisingly comfortable.

Outside compounds, the situation has changed significantly under Vision 2030. Cinemas, concerts, mixed-gender socialising, and entertainment venues have proliferated across Riyadh and Jeddah since 2018. Boulevard Riyadh City and Diriyah developments offer major entertainment facilities. The transformation is real, albeit incomplete. Women's dress requirements in public have been significantly relaxed (though modesty norms remain socially relevant). Social restrictions that would have defined the expat experience a decade ago are considerably less constraining today.

Healthcare

Saudi Arabia's healthcare system has been expanding rapidly under Vision 2030. Major government hospitals — King Faisal Specialist Hospital (KFSH) in Riyadh, King Abdullah Medical City — offer world-class specialist care for Saudi nationals and, in some cases, qualifying residents. Private hospitals (Saudi German Hospital group, Dr. Sulaiman Al Habib Medical Group, Mouwasat) serve the expatriate market.

Most corporate packages include private health insurance as a mandatory benefit; Saudi law requires employers to provide health cover for expatriate employees. International health insurance is worth supplementing with, particularly for those with specialised needs or regular treatment back in the UK.

International Schooling

Saudi Arabia has a well-developed international school sector, particularly in Riyadh:

• International Schools Group (ISG): multiple schools across Eastern Province; American curriculum
• British International School Riyadh (BISR)
• Jeddah Knowledge International School
• Dhahran British Grammar School (Aramco compound area)

Schools in the Diplomatic Quarter and major compounds offer reliable quality. Fees are typically covered or heavily subsidised for corporate packages from major employers.

Cost of Living

The formal cost of living for expatriates on package deals is often low in practice — accommodation, schooling, and healthcare are typically employer-provided. Day-to-day living costs for groceries, fuel (still very cheap by UK standards), and services are broadly affordable.

• Fuel: petrol is approximately SAR 2.18/litre for 91 octane (as of 2026) — a fraction of UK prices.
• Groceries: comparable to UK prices for Western imports; local produce is cheaper.
• Eating out: the restaurant scene has improved dramatically. A quality meal for two at a Riyadh restaurant costs SAR 200–600.

Tax-free income, combined with employer-provided housing, schooling, and healthcare, allows for high savings rates — a primary attraction of the posting.

Practical Tips

• Driving: right-hand traffic (opposite to UK). Large distances require car travel; Riyadh has no meaningful public transport beyond an underused metro. Having a car (or access to a company car) is essential.
• Ramadan: during Ramadan, eating, drinking, and smoking in public during daylight hours is prohibited for all residents. Business hours shift; social life restructures around iftar.
• Dress: women no longer need to wear an abaya in public under current rules, though conservative dress is respectful and customary. Men should dress modestly in traditional areas.
• Pork and alcohol: both officially prohibited and unavailable in retail channels.

Compliance note: Saudi laws and social rules are subject to change as Vision 2030 progresses. UK nationals should take UK tax advice on residency status. This guide is informational only.

How Global Investments Can Help

Global Investments works with internationally mobile HNW professionals considering Saudi Arabia and the Gulf as a base. We can advise on structuring your finances for tax efficiency during a Saudi posting, connect you with advisers experienced in cross-border UK–Gulf tax matters, and discuss how a Saudi stint can complement a longer-term wealth-building strategy. Contact our team for a confidential conversation.