Kingdom of Saudi Arabia: 11 reasons why you should consider relocating there

Saudi Arabia has numerous advantages for people who might be thinking of relocating there. Besides the career benefits and the immense new opportunities for working abroad, the country is well known for its incredible progress in innovation and technology. In the beginning of 2021 it became clear that a 170 kilometer-long advancement called “The Line” is becoming a part of the futuristic NEOM business zone. “The Line” will be а “belt of hyper-connected future communities, without cars and roads and built around nature.” NEOM is a special economic zone that will strive to be one of the world’s economic and scientific capitals. Imagine living in a country where a society interacts with technology in the most advanced possible way. The Kingdom of Saudi Arabia is a great place to live, and here are 11 reasons why:

Healthcare & safety

Saudi Arabia has been ranked among the 26 best countries in providing high-quality healthcare. Public healthcare is exceptional and also free for all Saudi citizens but not for the ex-pats working there. For foreigners, it is obligatory to take out private healthcare insurance in Saudi Arabia. However, you can expect excellent healthcare and practically no waiting lists.

Cities & digital growth

The Kingdom’s efforts towards ensuring a speedy development towards digital transformation, ultimately aim to achieve higher satisfaction rates and quality of living for both citizens and ex-pats, simplifying their everyday lives. To achieve this vision, Saudi Arabia has worked to spread awareness for the necessity of digitising government work, as well as elevating the degree of receptiveness to technology within government agencies, ensuring a transition towards an improvement in overall quality of life. In 2013, the KSA government agreed to implement the Future of Saudi Cities program, which seeks to achieve sustainable urban development in Saudi cities through effective planning and management, including the enhancing and supporting economically productive cities and improving urban legislation institutional framework.

Cost of living

Compared to other Gulf countries, life is quite affordable in Saudi Arabia. While imported foodstuff and other products are as expensive as in Europe, one can still find alternatives for high-quality products locally. Electronics such as TVs, DVD players, and cameras are affordable in Saudi Arabia thanks to low import taxes. According to Numbeo, consumer prices in Saudi Arabia’s capital city are 38.06% lower than in London, 47.79% lower than in New York and 34.41% lower than in Hong Kong (not including rent).

Taxes

Saudi Arabia used to be a tax retreat until 2018 when on the 1st of January, the 5% value-added tax (VAT) on most goods and services was introduced. Five years ago, Saudi Arabia also introduced the Vision 2030 plan to reduce its dependence on oil, diversefy the economy, and develop service sectors. The reforms affect tremendous areas of the government, the economy, and citizens. Tax policy will play a critical role in these reforms - one of the key goals of Vision 2030 is to increase foreign direct investment (FDI) to 5.7% of gross domestic product (GDP) by 2030, from 3.8%. There is a lot of research demonstrating the positive impact that double taxation treaties (DTTs) can have on FDI flows. However, there's still no income tax in Saudi Arabia – which probably explains why so many foreign workers choose to move there. There’s also no property tax, vehicle transfer tax, and inheritance tax.

Accommodation

It has only been possible for several years for foreign nationals to buy real estate in Saudi Arabia. As a result, most ex-pats rent apartments in so-called compounds, where only foreigners live. Those compounds rate anywhere from three to five stars. This type of housing can come furnished and fully equipped for residents to move in and out with ease. On-site facilities can include swimming pools, tennis courts, libraries, shopping centres, restaurants and bars, and even schools. However, when it comes to renting, there are plenty of options outside the ex-pat compounds. Unfurnished one-bedroom apartments are available from about SAR27,000 per year, although one will need to sign post-dated cheques for six-months to a year in advance.

Utilities

In Saudi Arabia, you can expect to pay a minimum of SAR350/month for household utilities, including electricity, water, and gas. An increase can be expected in the summer where the usage of an air-conditioner is a must. Government-run STC (Saudi Telecom Company) is the most extensive and reliable internet and mobile phone service provider in the country. 5G Quicknet services are available in a range of packages, depending on how much you need. Mobile phone plans are also available through STC.

Education

Saudi Arabia spends 8.8 % of its gross domestic product on education, compared with the global average of 4.6%, nearly double the global average. Saudi Arabia’s international schools offer various curriculums, such as the International Baccalaureate, the UK national curriculum, a US-style model or the International Primary Curriculum. The private international school sector is quite sizable, adding to reasons for relocating here. Campuses are concentrated in the capital Riyadh and the coastal cities of Jeddah and Al Khobar.

Transport

Within cities, public transport in Saudi Arabia is usually limited to private cars and taxis. However, the country does have decent inter-city train and bus connections. The Saudi Public Transport Company (SAPTCO) operates a fleet of more than 4,500 vehicles with multiple routes throughout the kingdom. It transports approximately 8 million people monthly between the major cities of the Kingdom. Taxis are readily available in Saudi Arabia, and fares are pretty standard across the country. Ride-hailing apps such as Uber and Careem are available in major cities like Riyadh – but not at airports – and prices vary based on trip distances and in-the-moment demand. Although inter-city public transport is available, these are rarely used by ex-pats - they find it far more convenient to hire cars and chauffeurs.

Currency and Banking

The Saudi riyal (SAR) is the currency of Saudi Arabia. SAR is pegged to the US Dollar at a rate of 3.75 SAR per USD. In Saudi Arabia, a total of 30 banks are currently licensed by the Saudi Arabian Monetary Authority (SAMA) - 13 local banks and 17 branches of foreign banks. Overall, banking in Saudi Arabia is easily accessible, as of the first six months of 2019, the country is home to 2,062 bank branches.

Food and household goods

Groceries in Saudi Arabia usually cost the same amount as they do in places like Europe, although individual items can be more or less expensive, especially if they are imported. Prices of essential products in Saudi Arabia are also lower than in the United States, for example. New malls are regularly opening, offering consumers the biggest brands and modern retail experience. The Mall at Kingdom Centre located in Riyadh, for instance, offers extensive shopping options.

Entertainment and eating out

Eating out is a cultural experience in Saudi Arabia, and everything from affordable to luxurious is available. Saudi cuisine is rich and flavourful. An authentic Arabic experience includes mint tea and shisha. Offerings are far more local and simplistic outside of the cities, and prices reflect that. Dining out is cheaper than in major cities around the world. In Saudi Arabia, people can relax at hundreds of parks, campsites, picnic grounds and other facilities throughout the country. Long stretches of coast and spectacular coral reefs make water sports such as snorkelling and windsurfing accessible. Popular types of leisure activities include horse/camel racing and falconry.