What this means? Duration: Two years renewable with mutual agreement

Dear Friends,
Please help me to understand this in my offer letter:

"Duration: Two years renewable with mutual agreement for one year terms."

When I asked the manager if this is a permanent position, the manager said it is a permanent position. 

For me, it is only for two years. 

What do you think of this?  Is this a permanent position in SABIC?

Please help.

Thank you.

New-in-Riyadh.

Yes its a permanent position.

Hey new...it is a permanent position. When it said 2 yrs, its like a probabtion period (not exactly)....and if mutually agreeable can be extended for another year. Maybe it depends on the kind of work you r doing that is measured by the company to the duration specified !!!

Good Luck!!!

The work contracts in Saudi have to state on a defined period.(eg years)

In this case they are saying this is a guaranteed 2 year contract which will be renewed in 2 years time by mutual consent (you and the employer).

It does mean that if the employer wishes, he can decide not to renew the contract in 2 years time.

Do to legal rules in connection with work visa, they cannot offer you a indefinate permanent contract. There is also the issue of Saudization which you do need to aware off.

Good Luck

Thank you.