What is iqama

Foreign workers are required to have the proper visas and work permits in Saudi Arabia, as established by immigration laws. Work permits must be secured for employees, and sponsored by a locally licensed and incorporated entity, which can be a problem for companies just entering the Saudi Arabian market.

A work visa is sponsored by an employer. This can be a Saudi company, a Saudi citizen or a foriegn entity appropriately licensed to do business in Saudi Arabia. Requirements for the Employee to present at the relevant Saudi Arabian embassy:. This should be issued by a clinic approved by the Saudi Embassy and be issued within 3 months of the application being lodged. The number required varies by embassy. Requirements of the Employer to submit to Ministry of Interior:.

Foreign employees who have listed dependent family members on their iqama must also pay a levy for each dependent once he or she arrives. The monthly rates per dependent are as follows:. Because of these taxes and levies, many expatriates left the country already. After the new taxes were instituted, more than 94, expatriate workers left Saudi Arabia in the third quarter of Most of these were from industries that do not pay the fees.

Professional companies tend to absorb the levy for expatriates and their dependents. The immigration and work authorization process in Saudi Arabia can often be complex and time-consuming. In many situations, it may take several months for approval. Many applications are initially denied. Many companies that are considering an expansion into the Saudi Arabian market use a Professional Employer Organization to assist them with this process.

This option allows a company that has not established a legal entity in Saudi Arabia to have a local workforce while the Professional Employer Organization is considered the legal employer of record and has all of the liability of employers. This type of company can complete the visa application.

This option often allows businesses to expand to a new market within a matter of days, instead of the months or years it takes to establish a separate legal entity. You can learn more about this option or other ways to work with a local partner by reading some of our articles on GlobalizationPedia. Average rating 4. Vote count: No votes so far! Be the first to rate this post.

Skip to content. Home page. May 28, Share on email. Share on facebook. Share on reddit. Share on twitter. Share on linkedin. This means it is up to the employer if they will cover the cost. Since January , the expat levy stands at SAR per month per expat worker. Additionally, foreign workers with dependent families listed in their Iqamas are also required to pay a levy for each dependent upon renewal.

This is based on the following rates:. The introduction this tax has already seen consequences. The overall immigration and work authorization process in the KSA can be time-consuming and complex. Depending on the nationality of the applicant, the proposed job title and the country from where the application is to be filed, it could take up to several months to complete. Want to learn more about how Velocity Global can accelerate your global expansion? Contact us today for additional information.

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