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I've got family and friends who have lived and worked in the Mid East
(Oman, UAE, Saudi), and holding a passport is a common practice for
employers of non-national contractors.
Here's the drill: you arrive for work and surrender your passport to
the employer. If it is a large company, this would be HR, and it is
kept with your personnel file. If it is a small company, it is kept
with your boss. Should you need to leave the country for vacation or
personal reasons, you must ask them for it before you get a travel visa.
If they don't give you the passport, then you don't travel. For
professionals (engineers, doctors), it is usually straightforward to get
the passport back for travel.
However, if I were going for a job in the US or Europe, I would be
*very* reluctant to hand them over. They can make due with certified
copies.
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