If you’re an expatriate living and working in Saudi Arabia, having a valid Iqama (residence permit) is absolutely essential. Without it, you can’t legally live, work, or access many basic services in the Kingdom. Whether you’re new to Saudi Arabia or have been here for years, understanding the costs and process of obtaining or renewing an Iqama is crucial.
In this article, we’ll break down the Iqama issuance and renewal fees for 2025, explain who is responsible for paying them, and provide a step-by-step renewal process. Let’s dive in!
What Is an Iqama?
An Iqama is your official residence permit in Saudi Arabia. It allows expatriates to legally live and work in the Kingdom. Beyond that, it’s required for almost everything—from opening a bank account to renting a home, accessing healthcare, or even buying a SIM card.
Why Is a Valid Iqama Important?
Having a valid Iqama isn’t just a formality—it’s the law. If your Iqama expires or isn’t renewed on time, you could face hefty fines, legal issues, or even deportation. Staying on top of your Iqama status is key to avoiding unnecessary stress and financial burdens.
Iqama Issuance and Renewal Fees for 2025
The cost of issuing or renewing an Iqama depends on your job, employment sector, and family situation. Here’s a breakdown of the fees:
1. Standard Iqama Fees
These are the basic fees for issuing or renewing your Iqama:
| Duration | Fee (SAR) |
|---|---|
| Annual | 650 |
2. Work Permit Fee
If you’re working in the private sector, you’ll also need a work permit:
| Duration | Fee (SAR) |
|---|---|
| Annual | 9,600 |
This fee is SAR 800 per month, which totals SAR 9,600 annually.
3. Dependent Fee
For expatriates with family members, there’s an additional dependent fee for each family member:
| Duration | Fee (SAR) |
|---|---|
| Annual | 4,800 |
This fee is SAR 400 per month, totaling SAR 4,800 annually.
4. Additional Costs
Other fees you may encounter during the Iqama process include:
| Category | Fee (SAR) |
|---|---|
| Health Insurance | 700 – 1,250 (annual) |
| Medical Examination | 200 – 500 |
New Fees for Iqama and Related Services
Starting January 1, 2025, the Ministry of Interior has applied new fees to certain services offered through Absher Business. These fees are specifically for value-added services and are separate from the standard annual fees employers usually pay. Here’s a summary of the updated charges:
Updated Fees
- Extending an Exit and Reentry Visa: SR 103.50
- Iqama Renewal: SR 51.75
- Issuing a New Iqama: SR 51.75
- Final Exit Visa: SR 70
- Updating Passport Information (Naqal Maloomat): SR 69
- Requesting an Employee Report: SR 28.75
Penalties for Late Renewal
Renewing your Iqama on time is crucial to avoid fines or more serious consequences. Here’s what you’ll pay if you miss the deadline:
| Penalty Scenario | Fine (SAR) |
|---|---|
| First Instance of Late Renewal | 500 |
| From Second Instance | 1,000 |
Iqama Transfer Fees
Changing jobs or employers in Saudi Arabia? You’ll need to transfer your Iqama, which comes with additional costs:
| Transfer Scenario | Fee (SAR) |
|---|---|
| First Transfer | 2,000 |
| Second Transfer | 4,000 |
| Third and Subsequent Transfers | 6,000 |
Recent Updates on Expat Fees
1. Domestic Workers
Work permit fees now apply to some domestic workers:
- For Saudi employers, fees apply starting with the fifth domestic worker.
- For foreign employers, fees apply starting with the third domestic worker.
2. Small Business Exemptions
Small businesses with up to nine employees (including the Saudi owner) are exempt from work permit fees for up to four expatriates, provided certain conditions are met.
3. Industrial Sector Workers
The work permit fee exemption for industrial sector workers has been extended until December 31, 2025, as part of Saudi Arabia’s Vision 2030 initiative to boost industrial investment.
Who Is Responsible for Iqama Renewal?
Employer’s Responsibility
In most cases, your employer is responsible for renewing your Iqama and covering the associated fees (like the work permit fee and standard Iqama fee). Employers are legally obligated to ensure that your Iqama is renewed before it expires.
Employee’s Responsibility
While your employer handles most of the process, it’s still your responsibility to ensure your Iqama is renewed on time. Remind your employer as the expiry date approaches to avoid penalties.
Dependent Renewal
If you have dependents (family members), you are typically responsible for paying their renewal fees. Make sure you budget for the SAR 4,800 per year per dependent, as this is not usually covered by employers.
How to Renew Your Iqama: Step-by-Step
Here’s a simple guide to renewing your Iqama:
- Pay the Standard Iqama Fee (SAR 650).
- Clear Late Fees (if applicable).
- Settle Any Traffic Fines—unpaid fines must be cleared before renewal.
- Pay the Work Permit Fee (SAR 9,600 annually).
- Ensure you have valid health insurance.
- Pay the Dependent Fee (if applicable).
- Your employer can then renew your Iqama through the Absher or Muqeem online portals.
Knowing the fees, understanding who’s responsible for what, and planning ahead—especially if you have dependents—can make things much easier. Check your Iqama’s expiry date regularly, talk to your employer if needed, and ensure everything is sorted on time to avoid unnecessary fines or complications.
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