The Kingdom of Saudi Arabia (KSA) is an attractive destination for foreign talent to live and work. Workers in Saudi Arabia benefit from tax-free income, uncomplicated visa requirements, inexpensive living costs, an English-speaking business community, low crime rates, and a vibrant culture.
In fact, foreign nationals account for 73% of the approximately 14 million employed individuals in Saudi Arabia. The country gives numerous opportunity for professionals to advance their careers while also providing global firms with a huge and diverse workforce pool of highly skilled people.
Individuals arriving in Saudi Arabia with a work permit must get an Iqama, or residency visa, which the Saudi government employs to handle all foreigners in the country. Employers must apply for and sponsor Iqamas for international workers in Saudi Arabia.
This tutorial will teach you about an Iqama, the application procedure, expenses, noncompliance risks to be aware of, and how to hire and relocate foreign workers in Saudi Arabia.
Meaning of Iqama in Saudi Arabia.
An Iqama visa allows foreign people to live and work in Saudi Arabia. To comply with Saudi Arabia’s labor regulations and immigration restrictions, foreign workers must hold an Iqama resident visa as well as a work permit.
How to get an Iqama visa in Saudi Arabia.
Before an expat can live and work in Saudi Arabia, they must first obtain visa sponsorship from a local employer, such as a Saudi firm or a foreign entity authorized to conduct business in the nation. The employer applies for and obtains the requisite work permits and Iqama for each overseas employee.
The procedures below detail how to obtain an Iqama visa in Saudi Arabia.
- Apply for a block visa.
The sponsoring company must first get a block visa permission from the Ministry of Labor and Social Development (MLSD). Block visas are quotas set by the MLSD that allow businesses to sponsor foreign personnel for long-term work permits. The MLSD issues block visas based on the applicant’s nationality and job role.
- Obtain a visa authorization number and power of attorney.
After receiving block visa approval, the sponsoring company must get a visa authorization number and power of attorney from the Kingdom of Saudi Arabia’s Ministry of Foreign Affairs. This phase permits the sponsoring employer to apply for a work permit in the employee’s home country at the appropriate Saudi Diplomatic Mission.
- Apply for a work permit.
Once the sponsoring company has obtained a visa authorization number and power of attorney, it must apply for a work permit on the employee’s behalf. The work permit application must be supported by the employee’s medical certificate from an approved medical center.
- Enter Saudi Arabia to begin employment.
The international employee can enter Saudi Arabia and begin working after his or her work permit is approved.
- Submit the Iqama and work permit applications.
Within 90 days of the employee’s arrival, the sponsoring employer must file an application for a work visa and Iqama with the MLSD. If the foreign employee has to leave and return to Saudi Arabia at any point while their work permit and Iqama are valid, the sponsor must apply to the Ministry of Interior for an exit and re-entry permit.
How long is an Iqama visa valid?
A foreign employee’s work permit and Iqama are valid for one year from the issue date and can be renewed.
How much does it cost to obtain an Iqama visa?
The annual cost of issuing or renewing an Iqama visa is 650 Saudi Arabian Riyals. Under Saudi law, the employer is responsible for all payments related to a foreign employee’s work permit and Iqama. If the employee leaves the company, the employer is also responsible for paying repatriation fees.
Iqama tax in Saudi Arabia.
In addition to the annual Iqama tax, foreign workers must pay a monthly levy, known as the Maktab Amal fee, to obtain a work visa. The monthly charge for obtaining a work permit is SAR 800, and the employer is responsible for paying it.
Foreign employees with dependent family members on their Iqama must pay a dependant fee of SAR 400 per month for each dependent. Saudi legislation does not specify whether the sponsor or foreign employee must pay this fee, thus it is up to the employer to decide whether to cover the expense.
Challenges in acquiring an Iqama residency visa in Saudi Arabia
Employers may face the following problems when getting an Iqama Saudi Arabia visa.
Iqama and work visa applications are difficult.
Obtaining an Iqama visa and a work permit for a foreign employee is time-consuming and involves substantial documentation. Employers must initiate the application and complete the required documents. This process can often take several months to finish.
The company may additionally have to demonstrate that no Saudi nationals are available to fill the post, as required by the Saudi Ministry of Labor’s Saudization program, which prioritizes hiring Saudi citizens whenever possible.
Noncompliance carries severe consequences.
Employers and their international employees must follow Saudi employment laws and immigration rules. If a company employs foreign talent without the necessary work permits and Iqama visas, it may face heavy fines, and the Saudi government may cancel its trading license. Foreign employees who work without an Iqama may potentially face significant fines, jail, and deportation.
Local sponsorship necessitates entity establishment.
To work and stay in Saudi Arabia, a non-Saudi national must be sponsored by a local business. However, local sponsorship necessitates company formation, which is costly and time-consuming for corporations without a legal presence in the nation.
Alternatively, firms looking to hire talent in Saudi Arabia might make the process easier by collaborating with an employer of record. An EOR serves as the legal entity and employer of your overseas personnel, allowing you to reap the benefits of global mobility without going through the time-consuming process of establishing an entity.
Furthermore, an EOR handles employer responsibilities such as onboarding, payroll, visa administration, and compliance with local employment and immigration rules, whilst you handle management functions such as remuneration, position assignments, projects, and performance evaluation.
Hire and move talent in Saudi Arabia with ease.
The immigration and work authorization procedures in Saudi Arabia are time-consuming and difficult. Companies looking to hire foreign talent or relocate staff to Saudi Arabia may make the process easier with a full-service immigration partner like Velocity Global on their side.
Our integrated Global Immigration solution makes visa acquisition easier while guaranteeing compliance in Saudi Arabia and beyond. As part of our Global Employer of Record (EOR) solution, we assist firms in hiring, paying, relocating, and supporting workers globally in a timely and compliant manner—no entity establishment is required.
Furthermore, the sponsoring employer may be required to pay a fee if their employee’s Iqama is misplaced or expires before renewal.