HR Due Diligence in the Middle East: How to Build Error-Free Recruitment

HR Due Diligence in the Middle East: How to Build Error-Free Recruitment

Why HR Due Diligence is Critical for Success in the Middle East
Expanding a business into Middle Eastern markets requires not only knowledge of local legislation and partnership practices but also comprehensive HR Due Diligence—a systematic assessment of risks, opportunities, and cultural compatibility in hiring and personnel management.
HR Due Diligence is more than just verifying work experience and diplomas.
​
In the Arab world, it involves:
- Checking for compliance with local regulations
- Assessing cultural integration
- Verifying language proficiency
- Diagnosing risks in staff adaptation and retention


1. Legal Context: What to Check Before Starting Recruitment
Gulf Cooperation Council (GCC) countries have clearly regulated, yet distinct, labor laws. For example:
In the UAE, free economic zones have their own labor codes.
In Saudi Arabia, there is a strong influence of Sharia law, particularly concerning dismissals, gender-specific hiring, and compensation.

What legal HR Due Diligence includes:
- Local quotas and restrictions (e.g., the Saudization system in Saudi Arabia and Emiratization in the UAE)
- The feasibility of hiring foreign specialists
- Regulations for leave, sick days, and compensation
- Contract registration and visa support (Work Permits, Iqama)
​
2. Assessing Cultural Compatibility: What Can Go Wrong
A key area of HR Due Diligence in the Arab world is assessing cultural compatibility. It is crucial to understand if a candidate fits the corporate culture of not only your company but also the country's context.

Mistakes to avoid:
- Hiring a candidate who looks "perfect" on paper but will not accept the hierarchy or religious norms.
- Appointing someone to a leadership position who cannot work within a highly vertical power structure.
- Ignoring the specifics of hiring women in Saudi Arabia (segregated offices, restrictions on movement and business trips).

3. Language and Communication Due Diligence: Not Every Arab Speaks "That Arabic"
A critical mistake by Western and Russian companies is assuming that "Arabic" is a single language. In reality:
- Official language: Modern Standard Arabic (MSA)
- Spoken language: Dialects (Gulf, Levantine, Egyptian, Maghrebi)
- Document language is often dual: MSA + English

What is important to verify:
Does the candidate understand Gulf Arabic (especially important for the UAE and KSA)?
Can they conduct correspondence in MSA?
Do they use relevant legal and business terminology?
Will there be a language barrier when communicating with local authorities (e.g., in logistics, government services, HR administration)?

4. Due Diligence in Evaluating Resumes and References
In Arab countries, a resume is just the starting point.

It is important to:
- Check the candidate's network connections (personal recommendations are far more important than LinkedIn).
- Clarify experience in the specific region (experience in Cairo ≠ experience in Riyadh).
- Request feedback from previous employers in the local market, preferably through personal contacts.

Advice: Never rely solely on a resume, even if it is written in English. Verify documented experience, regional relevance, and Arabic proficiency level.

5. Assessing Motivation and Retention Models
The Arab employee—what motivates them:
- Status, stability, respect.
- Social integration, inclusion in the team.
- Opportunities for career growth within the structure.

What is important to assess during Due Diligence:
Does the candidate understand the company's specific characteristics (e.g., Russian management style)?
Are they ready to work in a mixed team (especially if the manager is a foreigner or a woman)?
Will the absence of an adaptation period or incorrectly structured KPIs cause demotivation?

6. Onboarding and Starting Work: HR Navigation After Hiring
Due Diligence does not end after the contract is signed.

Successful adaptation involves:
- A respectful, hierarchical introduction to the team.
- Accommodation of religious practices (Namaz, Ramadan).
- Assigning an Arabic-speaking mentor (ideally with a similar dialect).
- A clear system of positive feedback (criticism should only be veiled and delivered through trusted intermediaries).

Risks Arising from a Lack of HR Due Diligence: An Example
Situation: A Russian company opened a representative office in Riyadh and hired a local marketing specialist without assessing their language level. After 2 months, it was discovered that they were only fluent in the Egyptian dialect and could not communicate with government bodies that required Gulf Arabic.
Result: Loss of contract, reputational risks, employee replacement after 3 months, and doubled expenses.

The Role of Agencies in Due Diligence:
-Linguistic expertise: Verification at the MSA and dialect levels.
- Cross-cultural assessment of the candidate.
- Reference checks through local contacts.
- HR consulting on compensation expectations, business ethics, and adaptation.

Instead of an Afterword
HR Due Diligence is the foundation of success in the Arab market.
Ineffective hiring in the UAE or Saudi Arabia costs 3–5 times more than in Russia—due to the cost of visas, relocation, a slow adaptation cycle, and employees' high sensitivity to lapses in cultural respect.

This is not bureaucracy. It is insurance against failure.