Iqama Issuance and Renewal Fees for 2024

Saudi Arabia requires expatriates to have a valid residence permit, known as an Iqama. This document is essential for living and working in the Kingdom. The process of obtaining and renewing an Iqama involves various fees, which differ based on the employment sector and profession of the expatriate. This article provides a detailed overview of the Iqama issuance and renewal fees as of 2024.

What is an Iqama?

An Iqama is a residence permit issued to expatriates in Saudi Arabia, allowing them to live and work legally in the country. It is a critical document, often required for various activities such as opening a bank account, renting a property, and receiving healthcare.

Importance of an Iqama

Possessing a valid Iqama is mandatory for all expatriates. Without it, individuals are considered illegal residents and may face legal consequences, including fines and deportation.

Iqama Issuance and Renewal Fees as of 2024

The cost of issuing an Iqama depends on various factors, including the nature of the expatriate’s job and the sector in which they work. Below are the standard Iqama issuance and renewal fees for expatriate employees working in the private sector in Saudi Arabia.

Standard Iqama Fees

This is the standard Iqama issuance and renewal fee that needs to be deposited under your Iqama number.

Duration	Fee (SAR)
Annual	650

Work Permit Fee

To work legally in Saudi Arabia, expatriates must obtain a work permit. Here is the standard work permit fee for expatriates:

Duration	Fee (SAR)
Annual	9,600

Note: The fee is SAR 800 per month, totaling SAR 9,600 annually.

Expat Dependent Fee

If you bring family members on a permanent family visa, there’s a fee for each dependent you need to pay:

Duration	Fee (SAR)
Annual	4,800

Note: The fee is SAR 400 per month, totaling SAR 4,800 annually.

Additional Costs

Apart from the issuance fees, expatriates may need to pay for health insurance and medical examinations, which are required for Iqama processing.

Additional Costs	Fee (SAR)
Health Insurance (Annual)	700 – 1,250
Medical Examination	200 – 500

Penalties for Late Renewal

Failing to renew the Iqama before its expiry date results in penalties. The fines increase with each instance of late renewal.

Penalty Scenario	Fine (SAR)
First Instance of Late Renewal	500
Second Instance	1,000
Third Instance (Deportation)+	1,000

Iqama Transfer Fees

If an expatriate changes jobs or employers, the Iqama must be transferred to the new employer, which involves additional fees.

Transfer Scenario	Fee (SAR)
First Transfer	2,000
Second Transfer	4,000
Third and Subsequent Transfers	6,000

Important Updates on Expat Fees

Changes in Work Permit Fees for Domestic Workers

Unlike before, the fee for work permits now also applies to some domestic workers. For Saudi employers, this starts from the fifth domestic worker they hire. For foreign employers, it starts with the third domestic worker.

Work Permit Fee Exemption for Small Businesses

Saudi Arabia has decided to exempt work permit fees for small businesses with up to nine employees, including the Saudi owner, until March 2027. Here are the specifics of who doesn’t have to pay the fees:

• Small firms with nine or fewer employees registered with the General Organization for Social Insurance (GOSI) can get an exemption from paying the levy for two foreign employees.
• If an establishment includes at least one Saudi citizen besides the employer, both registered with GOSI, the firm will get a levy exemption for up to four expatriate employees.
• An establishment can get an exemption for up to four foreign workers from the levy, regardless of its size.

Work Permit Fee Exemption for Industrial Workers

Saudi Arabia has recently extended the expat work permit fee waiver for industrial sector workers until December 31, 2025. Initially introduced in 2019 for five years, this extension aims to boost industrial investments and align with the goals of Vision 2030.

Responsibility for Iqama Renewal

Employer vs. Employee Responsibilities

In Saudi Arabia, the responsibility for renewing an Iqama primarily falls on the employer. The employer is legally required to initiate and complete the renewal process on behalf of the employee before the Iqama expires. This includes paying the necessary fees associated with the Iqama renewal, such as the Expat Work Permit Fee and the standard renewal fee.

However, it is also the employee’s responsibility to ensure that their Iqama is renewed on time. While the employer handles the administrative and financial aspects, the employee should remind their employer about the renewal as the expiry date approaches to avoid any penalties or legal issues.

In some cases, depending on the employment contract, the employer might deduct the Iqama renewal fee from the employee’s salary, but this practice varies and should be clearly outlined in the employment agreement.

Dependent Iqama Renewal Responsibility

The responsibility for paying dependent Iqama renewal fees typically falls on the expatriate employee, not the employer. The fee for each dependent is SAR 4,800 per year, which the expatriate must cover unless otherwise agreed upon with the employer. Some employers may offer to pay these fees as part of the employment package, but this is not the norm and should be confirmed in the employment contract.

Expatriates should ensure they budget for these additional costs, especially if they have multiple dependents. It’s important to keep track of the renewal dates to avoid late penalties, which could add further financial strain.

Iqama Renewal Process

Here is a step-by-step guide to the Iqama renewal process:

1. Pay the MOI Iqama fee.
2. Clear any late renewal fees (if applicable).
3. Settle outstanding traffic fines (if applicable).
4. Pay applicable work permit fees.
5. Ensure you have a valid health insurance policy.
6. Pay the dependent fee (if applicable).

Once done, your employer can renew your Iqama through the Absher or Muqeem online portals.

Key Takeaways:

• The standard fee for issuing and renewing an Iqama is SAR 650.
• The Expat Work Permit Fee is SAR 9,600 per year for most expatriates in the private sector.
• Dependents add significantly to the total cost, with a fee of SAR 4,800 per year for each dependent.
• The responsibility for Iqama renewal primarily lies with the employer, but employees should ensure that the process is completed on time.
• The dependent Iqama renewal fee is typically the responsibility of the employee and should be budgeted for accordingly.
• Late renewal penalties can lead to fines or even deportation.
• Additional costs include health insurance and medical examinations.

The process of issuing and renewing an Iqama in Saudi Arabia involves various fees that expatriates must consider. These costs can vary based on employment sector, the number of dependents, and whether the Iqama needs to be transferred to a new employer. It’s crucial for expatriates to stay informed about these fees to avoid penalties and ensure their legal status in the Kingdom.