Moving to Saudi Arabia

as an Expatriate
Shena Bigger
Tyler Capezzuto
Oscar Chapellin
David Nguyen
Huyen Nguyen
Sarang Rana
Veronica Storaci
 BACKGROUND
Jason Mandelsohn, a 35 year-old manager who had
been chosen to lead an expansion of his company in
Saudi Arabia
Company is small but has potential to grow
Has a wife and two small children
Assignment will last 2-3 years w/ possibility for
extension
One week to make decision

Should he take the assignment?

TOPICS

Saudi Arabia: culture, political,

and economic climate
Advantages of working/living
in Saudi Arabia
Disadvantages of
working/living in Saudi Arabia
Standard expatriate
compensation package
Recommendation based on our
research
 WHAT IS AN EXPAT?

Nearly 80% of midsize and large companies currently send

professionals abroad
Expats cost two to three times what they would in an equivalent
position back home (anywhere from $300K - $1M)
Between 10% and 20% of all U.S. managers sent abroad returned
early because of job dissatisfaction
1/3 did not perform up to the expectations of their superiors
1/4 of those who completed an assignment left their company, within
one year after repatriation
EXPAT STATS: U.S. AMERICANS
 SAUDI ARABIA: POLITICAL

Saudi Arabia is a monarchy based on Islam.

Because the country is an Islamic state, its judicial

system is based on Islamic law.

The king is at the top of the legal system, and he

acts as the final court of appeal and can issue
pardons.

Executive power rests with the Council of Ministers

(Cabinet) with all members appointed by the King.
 SAUDI ARABIA: ECONOMIC

Saudi Arabias free market economy

has evolved from a basic agricultural
society into a regional and global
economic power with a modern
infrastructure.

The petroleum industry is the most

integral part of the Saudi economy.

The private sector is now playing an

increasingly larger role in the Saudi
economy, accounting for 48 percent of
the GDP.
SAUDI ARABIA: CULTURE

Hofstedes cultural dimensions depict

the differences between both countries.

Men and women do not greet each

other in person.

Relationships within business are very

important even at work, therefore
business meeting always start later
than scheduled because of
conversation.

People do not require as much personal

space, so people tend to stand really
close to each other.
 SAUDI ARABIA: ADVANTAGES

Work and business opportunities

No tax
Low cost health insurance
Quality and excellent education
choices
 SAUDI ARABIA: DISADVANTAGES

Women are not permitted to

drive.
No open practice of religions
other than Islam.
Entertainment is not like in
the United States. No
theatres. No nightclubs.
 EXPATRIATE PACKAGE

SHIPPING PERSONAL
HOUSING TRANSPORTATION ANNUAL TRIP HOME
ITEMS
Cost of living Cheap fuel Difficult Once a year, sometimes
Expat compounds Public transportation Costly more
Affordable living Women not allowed List of prohibited items Eid al-Fitr
Eid al-Adha
 EXPATRIATE PACKAGE
EDUCATION FOR EXPAT CHILDREN
Options are very limited
Only locals and naturalized arabs may
attend public schools
Can choose either public international
or boarding schools

PRIVATE INTERNATIONAL SCHOOLS

Some are governed by embassies,
others private
Typically co-ed
Tuition fees are very high for the best
schools
 EXPATRIATE PACKAGE

HEALTH INSURANCE
Non-Saudi nationals must have private
medical insurance

Standard is considered to be equal to

that of the USA/Western Europe

Numerous medical facilities in private

and public sector

Typically no waiting
 EXPATRIATE PACKAGE
FAMILY SUPPORT REPATRIATION
More difficult for Lapse in contract or
women to assimilate violation of strict Saudi
than men laws
Living in westernized Must be planned
compounds makes it months in advance
easier Many find it difficult to
Living outside the return home
compounds is not as May experience reverse
easy culture shock
Easier for children to
assimilate
Women outside the
compounds are
expected to don an
 RECOMMENDATION
Based on the
Economic
Political
Cultural
Advantages
Disadvantages
Expatriate Package
Housing, Transportation, Personal Items, Trips Home, Education,
Health insurance, Family Support, and Repatriation

Our Recommendation is that Jason takes the expansion job over in Saudi
Arabia with his family.