WORK PERMITS AND VISAS FOR SAUDI ARABIA
Foreign nationals need to have a valid residence and work permit to work in Saudi. These permits are given to those with employment contracts under sponsorship of a local employer (a Saudi company, individual or a foreign entity licensed to do business in Saudi Arabia). Notably, in some cases, the employer may have to demonstrate that no Saudi can fill the intended position, and hence a foreign worker must obtain an employment visa.
WHAT ARE THE REQUIREMENTS FOR A SAUDI WORK VISA?
Below is an overview of the main requirements needed to start a Saudi work visa, but not limited to:
- Valid Passport: Make sure your passport is valid for at least the next six months.
- Colour Photographs: Deliver two passport photos.
- Employment Contract: Present a copy of the work contract in Arabic language.
- Visa Application: Complete and submit the actual visa application to the authority in charge of it.
At Creation Business Consultants, you will be helped by a dedicated Saudi visa specialist who will conduct an onboarding assessment to fulfill the complete documentation requirements and processes.
WHAT IS IQAMA (RESIDENCY PERMIT)?
Once the work visa is approved, the employee can travel to Saudi Arabia to obtain his iqama. Iqama is the Saudi Arabian employment permit or national residency permit that allows foreign nationals to live and work in the Kingdom. It is sponsored by an employer who has the right to hire foreign employees in their office premises located in KSA. It is valid for one year and is up for yearly renewal. The employer is responsible to apply for its employee’s iqama. When the employee arrives to Saudi Arabia, the employer then has ninety (90) days to apply and finalise the iqama application.
Although the employee might have completed a medical fitness test at the country of his residency when he applied for the work visa, yet he will be administered to a second medical examination to apply for an iqama. It will have to be completed at a designated health clinic. It is also further mandatory to apply for a KSA health insurance to process the work permit (also known as labour card) and the exit/re-entry multiple permit application. Once Iqama is obtained, a bank account opening can be initiated.
A foreign employee must always carry the iqama card with them. The iqama card details personal information, who they are, work eligibility, employer details and duration of stay. Failure to carry the iqama card at all times may result in heavy fines to its holder.
It is crucial to renew the iqama promptly to avoid freezing Saudi bank accounts, heavy fines for non-compliance, and hindering the streamline of business operations. Obtaining a work visa and iqama in Saudi Arabia is a detailed process, involving careful adherence to regulations and timely renewals to ensure a smooth and legally compliant stay in the Kingdom.
WHAT ARE THE SAUDIZATION REQUIREMENTS?
The Kingdom of Saudi Arabia has embarked on a series of initiatives to push the country toward Saudization. Saudization is a policy implemented by the Ministry of Human Resources and Social Development aimed at increasing the employment of Saudi nationals in various sectors, whereby Saudi companies are required to hire Saudi nationals on a quota basis, officially known as the Nitaqat scheme. Employers are obligated to attract, hire, train and retain Saudi nationals. Every company must have at least one Saudi national employee.
Under the Nitaqat system, companies are classified into five categories based on the percentage of Saudi nationals employed: Platinum, High Green, Mid Green, Low Green, and Red. Each colour zone represents the percentage of Saudi nationals required within a company, as well as determines what rules, regulations and privileges apply to that zone in terms of for example obtaining visas and residence permits for foreign workers.
WHAT ARE THE QUOTA ZONES IN SAUDI ARABIA?
- Red Zone: 0 – 16.21%.
- Low Green Zone: 16.22 – 19.25%.
- Medium Green Zone: 19.26 – 23.11%.
- High Green Zone: 23.12 – 26.51%.
- Platinum Zone: 26.52 – 100%.
WHAT IS THE LOCALISATION AND EXPANSION OF SAUDIZATION?
In adherence to the Saudization initiate, the government has exclusively restricted certain jobs to Saudi nationals such as:
- Sales outlets, jobs in malls, and related professions for example branch manager, supervisor, cashier, customer accountant, and customer service.
- Sales activities related to various sectors including cars, furniture, clothing, electronics.
- Professions including project management; procurement and sales, site manager, assistant manager, quality manager, financial supervisor, site. supervisor, track head, inspection technician, assistant inspection technician, maintenance technician, information technician, data entry operator.
- Optical sector professions including medical optometrist and eyeglasses technician.
- Entertainment cities within closed commercial complexes.
- Aviation sector professions including air controller, air transporter, ground movement coordinator and co-pilot.
- Consultancy sector.
The localization decisions for professions and activities have been instrumental in creating jobs for more than 500,000 male and female citizens in the private sector since 2019 as noted by the Minster of Human Resources and Social Development. Employers are urged to comply with Saudization requirements to contribute to the country’s economic growth and ensure a balanced and inclusive workforce. The government supports private sector companies in hiring Saudis through offering training, qualification support, and assistance with employment procedures, while implementing punitive measures against establishments failing to comply.
Furthermore, the Ministry of Human Resources and Social Development also issued a ministerial decision recently on January 6th, 2024, mandating private sector companies with 50 or more employees to provide cooperative training for students, as the Kingdom seeks to sustain localisation and suitable employment for Saudi nationals post-graduation.
WHAT IS THE COMPETITIVE TALENT MARKET IN SAUDI ARABIA?
Nonetheless, on 10 January 2023, the Saudi Arabian government launched five new premium residency programs designed to attract foreign talent in line with the Kingdom’s Vision 2030 plan. This strategic move aims to position the country as a global hub for businesses and drive the country’s economic transformation by drawing in skilled professionals and fostering knowledge transfers.
The ‘Special Talent’ Residency plan is catered specifically to target executives and professionals in various fields such as healthcare, science, sports, real estate, and research, amongst others.
This new initiative is expected to create a competitive market for talent acquisition in the Kingdom as well as induce the promotion of upskilling among Saudi nationals.
WHAT ARE THE EMPLOYEE RIGHTS AND BENEFITS IN SAUDI ARABIA?
The Kingdom of Saudi Arabia implemented its labour law in September 2005 under the Royal Decree No. M/51, applicable to both Saudi nationals and foreign workers in the private sector. The KSA labour law is overseen by the Ministry of Human Resources and Social Development (MHRSD) which was formulated in 2019 through the merger of the Ministry of Labour and Social Development. The KSA labour law identifies employee rights and benefits, some of which are listed below:
- Medical Insurance and Leave Entitlement.
- End of Service/ Gratuity.
- Workplace safety.
- Wage Protection System (WGS).
- Social Security Obligations.
WHAT ARE THE KEY ASPECTS OF MEDICAL INSURANCE AND LEAVE ENTITLEMENT IN SAUDI ARABIA?
Under the KSA Labour Law, employers are obligated to provide medical insurance to foreign employees and process their leave entitlements in adherence to the law. In KSA, leave entitlements include:
- Annual leave: 21 days for the first 5 years of service, increasing to 30 days after 5 years.
- Sick leave: 30 days.
- Maternity leave: 10 weeks.
- Bereavement leave: 5 days for spouse/blood relation.
- Parental leave: 3 days.
- Study leave: during exam dates.
WHAT ARE THE REGULATIONS REGARDING END OF SERVICE BENEFITS IN SAUDI ARABIA?
Termination and resignation in KSA are governed by Article 74 of the labour law. Upon employment termination, the sponsoring employer must arrange a sponsorship transfer or final exit visa after setting any outstanding debts, fines and pending cases in the Labour Court.
Every employee is entitled for an end of service/ gratuity after completion of certain period with the company. It is a combination of compensation and unutilised leave payment, calculated based on the minimum service period of two (2) years, with varying wage calculations for different periods of services as follows: