State Plan - the General Organization for Social Insurance ("GOSI") operates a pension plan for Saudi (and other Gulf Cooperation Council ("GCC") country) nationals only. There is no pension for foreign national employees. For Saudi nationals, the employer and employee each contribute 9% of the employee's wage to GOSI. The employee's pension contribution is deducted from their monthly salary by the employer and paid to GOSI on the employee's behalf (employers must also enrol GCC country nationals and pay an amount that is transferred from the Saudi GOSI to the social insurance provider in their home country and paid out on retirement).

It is an employer obligation to contribute to a Saudi (or other GCC country) national's social insurance and make the necessary deduction from the employee's wage for the employee's contribution. Therefore, if the transaction involves the transfer of employees from the seller to the purchaser, the seller would need to deregister the Saudi (and other GCC country) national employees from its GOSI account and the purchaser would need to register these employees on its GOSI account. This is a straightforward task that would not impact on timing, purchase price or other steps involved in the transaction. The purchaser registering the Saudi (or other GCC country) national employees with GOSI would occur on or post-completion.