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Tax free lifestyle comes at a price

Saudi Arabia still offers rich rewards for Western expatriates despite the fear of terrorist attacks, but it is not for the nervous, says Mark Hunter

SAUDI Arabia used to be the place to go to make a quick, tax-free fortune while cosseted in your luxury expatriate living compound. Today, a plummeting exchange rate and the ever-present threat of terrorism mean that the country is no longer the honeypot it once was.

While relocating to Saudi Arabia is certainly not for the faint-hearted, it still offers some attractive opportunities for those willing to adapt.

“Obviously people are wary of the situation but, if you work in sectors such as construction, engineering, IT or banking, the incentives are still very good,” says Raj Sharma, international business director at Hays, the recruitment consultants.

Before you go: Think before you go: the kingdom’s strict adherence to Sharia (Islamic law) and the precarious security situation will impose severe limitations on anything approaching a Western lifestyle.

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You should allow four to six weeks before you leave to sort out your visa requirements. Your passport should be valid for at least six months and you will need a residency visa. Women arriving at the airport must be met either by their husband or by their male sponsor.

Safety: Current advice from the Foreign and Commonwealth Office (www.fco.gov.uk) is that terrorist attacks are believed to be planned against Western targets and anyone choosing to go to Saudi Arabia should “maintain a high level of vigilance, particularly in public places”.

Money: Salaries are high by UK standards and paid tax-free.

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Living: Most Western expats live in free accommodation provided by their employers within secure “living compounds”. Corporate packages often include domestic help, a car and medical expenses. There is a vibrant expatriate community but there tends to be little social interaction between expats and the Saudi population.

Women: Life for Western women in Saudi Arabia can be difficult. They are not allowed to drive and, with the exception of teaching and nursing, are barred from most jobs. Outside the living compounds, Western women are expected to dress conservatively and those who leave their hair uncovered are likely to be challenged by the mutawwa (religious police).

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Families: “The security situation means that it’s not really advisable for people with families to go to Saudi Arabia at the moment,” Sharma says. “Many UK nationals who have decided to stay have sent their families home, so within the compounds you have a lot of people living on their own in five-bedroom villas.”