The 29-year-old right-back was a free agent after leaving Ajax and has signed a one-year deal, with the option of 2 more years.
He was a regular in the Champions League during his 5 years with Ajax and has been repeatedly linked with a move to Arsenal over the last few seasons, so City boss Stuart Pearce is delighted to complete the signing.
"Hatem's joining us subject to a work permit and we're delighted to have him here" he told the City website. "I think he's one of the best Bosman's of the summer personally.
“He'll be an attacking option for us. He gets forward well, he's decent with the ball at his feet and he's got a lot of energy.
“He's regularly played at the highest level in Europe, been to 3 World Cups with his country and captains his country, so it's a good CV," Pearce added.
“I've watched him play for Ajax over the last 3 years and been very impressed with him.”