In a region where business is booming and cross-border travel is routine, having a solid business travel reimbursement policy in the UAE or broader GCC region is essential. From Dubai to Riyadh and Doha, companies across the Middle East are investing in structured, compliant, and cost-effective systems to manage travel expenses.
This guide explores how HR teams can craft clear, efficient employee travel policies for Saudi Arabia, the UAE, and Qatar—backed by automation tools like Token Talent HR software in the Middle East that streamline approval and tracking processes.
What Is a Business Travel Reimbursement Policy?
A business travel reimbursement policy outlines the process, limits, and conditions under which employees are reimbursed for work-related travel expenses. This includes everything from flight tickets and hotel stays to local transport, meals, and incidental costs.
A strong policy ensures:
- Transparency
- Cost control
- Tax compliance
- Employee satisfaction
Why Travel Reimbursement Matters More in the Middle East
The Middle East is home to global business hubs like Dubai, Riyadh, Abu Dhabi, and Doha—cities that frequently host regional meetings, exhibitions, and corporate expansions. Companies in the UAE, Saudi Arabia, and Qatar are now aligning with international standards to attract global talent and remain compliant with evolving labor laws.
These companies are increasingly implementing HR travel expense automation solutions to modernize the way they track business-related reimbursements.
Key Components of a Travel Reimbursement Policy
Here are the must-have elements in your travel reimbursement policy:
1. Eligible Travel Expenses
- Airfare (economy or business class)
- Hotel accommodations
- Visa and immigration fees
- Daily meals and incidentals (can be covered under per diem)
- Local transport (taxis, rideshare, rental cars)
- Parking and toll fees
- Conference or event registration fees
2. Per Diem vs. Actual Reimbursement
- Per Diem: A fixed daily allowance (e.g., AED 500/day in Dubai) to cover meals and minor expenses. No receipts required.
- Actual Reimbursement: Employees submit receipts for each expense, and only the actual amount is reimbursed.
Many companies in the UAE and Saudi Arabia now combine both methods—offering per diem vs actual expenses models that suit different roles.
3. Approval Workflow
- Pre-travel approval from HR or a line manager
- Submission of expense reports within 30–60 days post-travel
- Receipts required for any expenses not covered under per diem
4. Documentation Requirements
- Date, time, and business purpose
- Boarding passes, hotel invoices, or e-tickets
- Receipt threshold (e.g., above SAR 200 requires proof)
Country-Specific Travel Policy Tips
🇦🇪 United Arab Emirates (UAE)
- VAT-compliant invoicing required for all reimbursable expenses.
- Dubai and Abu Dhabi often have higher per diem rates (e.g., AED 400–600/day).
- Align with tax-free employee benefits GCC when structuring travel perks.
🇸🇦 Saudi Arabia (KSA)
- Clarify coverage for domestic vs. international flights (e.g., Jeddah to Riyadh vs. KSA to Bahrain).
- Local transport may need receipts due to fuel subsidy rules.
- Align with GOSI (social insurance) deductions for allowances.
🇶🇦 Qatar
- Include guidance on reimbursing costs during events like the Qatar Economic Forum.
- Doha has city-specific cost benchmarks; set employee travel policy Saudi Arabia rates accordingly.
Best Practices for HR Teams
1. Set Clear Limits
- Cap hotel rates (e.g., no more than AED 1,000/night)
- Limit airfare classes (economy for domestic, business for international)
2. Go Paperless
Use Token Talent HR software Middle East to:
- Submit digital receipts
- Track per diem in Dubai and travel approvals
- Sync reimbursement with payroll automatically
3. Localize the Policy
Tailor your policy to align with:
- Currency differences (QAR, SAR, AED)
- Public holidays and religious events (e.g., Ramadan travel adjustments)
4. Train Employees
Offer a mini-training or toolkit so employees understand:
- What’s reimbursable
- How to file expense reports
- What happens if they exceed limits
How Token Talent Simplifies Business Travel Reimbursements
Token Talent automates the end-to-end travel reimbursement process, saving HR and finance teams valuable time.
Key Features:
- Digital per diem management
- Real-time expense tracking
- Auto-approval workflows
- Mobile upload of receipts
- Region-specific settings for UAE, KSA, Qatar
By integrating attendance, leave, and payroll, Token Talent ensures accurate, policy-aligned payouts every time.
Avoid These Common Mistakes
- Failing to set region-specific per diem rates
- Not collecting documentation within 60 days (risk of taxable income)
- Reimbursing luxury or unapproved expenses (e.g., first-class flights)
- Inconsistent policies between departments or locations
Summary: Build a Policy That Works
A well-defined business travel reimbursement policy in the UAE or GCC creates fairness, efficiency, and cost control—especially in fast-moving business environments like the Middle East.
By pairing clear policy guidelines with smart HR travel expense automation software like Token Talent, your company can stay compliant and support employees without the manual burden.
