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Key Takeaways
The Iqama is Saudi Arabia’s mandatory residence and work permit for foreign employees.
It’s employer-sponsored and tied to a specific employer and role under the sponsorship system.
Employers must meet Saudization (Nitaqat) requirements before sponsoring foreign workers.
Government fees include visa authorisation, Iqama issuance, renewals, and monthly expat levies.
Ongoing compliance—renewals, reporting changes, and proper record-keeping—is critical to avoid fines or sponsorship restrictions.
What is the Iqama, and Who is it For?
The Iqama is Saudi Arabia’s official residence permit for foreign nationals working in the Kingdom. It’s issued to expatriate employees after entry on a work visa and serves as both a residency ID and proof of legal work authorisation. Without a valid Iqama, a foreign national cannot legally live, work, open bank accounts, sign leases, or access most services in Saudi Arabia.
For employers, the Iqama is the foundation of compliant hiring in Saudi Arabia. It applies to nearly all foreign employees working for a Saudi-registered company and is tied to the sponsoring employer under the Kingdom’s sponsorship (kafala) system.
Because the process is employer-led and closely regulated, companies must meet Saudization requirements, maintain active registrations with government platforms, and manage the employee’s status throughout their employment. When handled correctly, the Iqama enables employers to hire global talent while staying fully aligned with Saudi labour and immigration laws.
Basic Eligibility Requirements for the Iqama
The Iqama is issued to foreign nationals who are employed by a Saudi-registered sponsor and hold an approved work visa. The permit is employer-sponsored and linked to a specific role and employer, meaning compliance starts before the employee even enters Saudi Arabia. Employers must also comply with Saudization (Nitaqat) rules, which influence whether and how many foreign workers they can sponsor.
Employee Requirements
- A confirmed job offer from a Saudi-registered employer
- Qualifications or professional experience relevant to the approved role
- Entry to Saudi Arabia on a valid work visa
- Medical fitness clearance from an approved clinic
- A valid passport with sufficient remaining validity
Required Documents for Employees
- Valid passport
- Passport-style photographs
- Education certificates and professional credentials (attested if required)
- Medical examination report
- Police clearance certificate (depending on nationality/role)
- Signed employment contract
Required Documents for Employers
- Commercial Registration (CR) and active business licences
- Registration with key government platforms (e.g., Qiwa, Absher, Muqeem)
- Employment contract compliant with Saudi Labour Law
- Proof of Saudization (Nitaqat) compliance
- Visa authorisation and sponsorship documents
Step-by-Step Process for Sponsoring an Iqama in Saudi Arabia
- The employer confirms role eligibility and Saudization compliance under Nitaqat.
- The employer applies for a work visa authorisation through Saudi government systems.
- The employee applies for a work visa at a Saudi embassy or consulate abroad.
- The employee enters Saudi Arabia on the approved work visa.
- Medical testing and biometric registration are completed in Saudi Arabia.
- The employer issues the Iqama through Absher/Muqeem, activating legal residency and work status.
Costs & Fees Employers Are Responsible For to Sponsor an Iqama
Sponsoring foreign employees in Saudi Arabia involves several government fees and ongoing levies. Costs vary by role, duration, and company Saudization status, so employers should plan carefully.
Government Fees & Who Pays What
- Work visa authorisation fee: Paid by the employer.
- Iqama issuance and renewal fees: Typically employer-paid.
- Medical examination and biometric fees: Usually employer-paid or reimbursed.
- Expat levy: Monthly fee per foreign employee, payable by the employer.
Employer Costs vs. Employee Costs
Costs Born By the Employer
- Government visa and Iqama fees
- Expat levy and Saudization-related costs
- HR, compliance, and administrative resources
- Legal or immigration advisory fees (if used)
Costs Born by the Employee
- Personal document preparation and attestation (if not reimbursed)
Costs Covered by Both
- Medical testing and onboarding formalities
Renewal/Extension Fee
The Iqama is usually issued for one year and must be renewed annually. Late renewals can trigger fines, suspension of services, or work disruptions.
Employer Responsibilities to Ensure Compliance
Saudi Arabia places strong compliance obligations on sponsoring employers, making ongoing management essential:
- Ensure the employee works only for the sponsoring employer and in the approved role.
- Maintain compliant salary, benefits, and working conditions under Saudi Labour Law.
- Track Iqama expiry dates and renew on time.
- Report termination, role changes, or sponsorship transfers promptly.
- Maintain accurate employment, payroll, and immigration records.
- Understand non-compliance risks, including fines, service suspension, or loss of sponsorship privileges.
Hire Global Talent Your Way with Playroll
Borders shouldn’t slow your hiring plans. Playroll gives you two flexible ways to hire globally. If relocation to Saudi Arabia is required, our visa sponsorship services support you through the full Iqama process – from work visa authorisation to residency issuance and compliance.
If relocation isn’t required, Playroll’s Employer of Record solution lets you hire talent in their home country. We handle employment, payroll, taxes, benefits, and compliance so you can onboard quickly without setting up a local entity. Wherever your next hire is based, we make global employment simple.
ABOUT THE AUTHOR
Milani Notshe
Milani is a seasoned research and content specialist at Playroll, a leading Employer Of Record (EOR) provider. Backed by a strong background in Politics, Philosophy and Economics, she specializes in identifying emerging compliance and global HR trends to keep employers up to date on the global employment landscape.
Iqama FAQs
Can employers sponsor workers on the Iqama?
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Yes. Saudi-registered employers can sponsor foreign employees by obtaining a work visa, issuing a compliant employment contract, and completing the Iqama issuance after arrival. The employer remains the sponsor throughout the employee’s stay.
What compliance checks or reporting are required from employers?
Employers must ensure the employee works only in the approved role, renew the Iqama on time, report terminations or transfers, and maintain compliant payroll and employment records. Most reporting is done through government platforms such as Absher and Qiwa.
What happens if the visa or Iqama is denied or delayed?
If there’s a delay, the employee may not be able to start work or access services until the Iqama is issued. If denied, the employee cannot legally work in Saudi Arabia under that sponsorship, and the employer may need to reassess the hiring plan.
Can I hire the worker as a contractor instead of an employee?
Usually no. If the individual is working in Saudi Arabia under your direction, an Iqama tied to a compliant employment relationship is generally required. Misclassification can lead to fines, penalties, and loss of sponsorship privileges. For more details, see our Misclassification Guide.
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