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The LOI Offer Letter is a standard business document used in Saudi Arabia to initiate formal employment relationships. It serves as an initial agreement between an employer and a potential employee, outlining the fundamental terms and conditions of the proposed employment. This document type is particularly important in the Saudi Arabian context as it must align with specific requirements under Saudi Labor Law, Saudization policies, and Islamic Sharia principles. The LOI Offer Letter typically precedes the formal employment contract and includes critical information such as position details, compensation structure, benefits, and basic working conditions. It's commonly used during the recruitment process for both Saudi nationals and expatriate workers, requiring careful consideration of visa requirements, work permits, and local employment regulations. The document plays a crucial role in ensuring transparency and setting clear expectations while maintaining compliance with local legal frameworks.

1. Letterhead and Date: Company letterhead with full legal name, address, and commercial registration details as required under Saudi law

2. Recipient Details: Full name and address of the prospective employee

3. Job Title and Department: Specific position being offered and department/division assignment

4. Employment Terms: Key terms including start date, probation period, and work location

5. Compensation Package: Base salary, allowances (housing, transportation) and any other financial benefits as per Saudi Labor Law requirements

6. Working Hours: Standard working hours, days, and any shift requirements in compliance with Saudi Labor Law

7. Leave Entitlement: Annual leave, public holidays, and other leave entitlements as per local regulations

8. Benefits: Health insurance, social insurance (GOSI), and other benefits as per Saudi requirements

9. Acceptance Terms: Instructions for accepting the offer and deadline for response

10. Closing: Signature block for authorized company representative