Recruiting Labor for Companies in Saudi Arabia: Everything You Need to Know
If you are a business owner or HR manager in Saudi Arabia, recruiting labor from abroad requires a clear understanding of the system. From the Qiwa platform to the Nitaqat system and the visa application process — in this article, we explain the complete steps.
What is Recruiting Labor for Companies?
Recruiting labor for companies means bringing employees from outside Saudi Arabia to work in a specific establishment. This differs from recruiting domestic workers in terms of procedures and responsible authorities; it is supervised by the Ministry of Human Resources and Social Development (HR) and is primarily conducted through the Qiwa platform.
The Role of the Qiwa Platform in Recruitment
The Qiwa platform is the primary system for managing labor relations in the private sector. Through it, the company can:
- Register and update establishment data
- Manage files of expatriate employees
- Submit applications for issuing labor visas
- Monitor employment contracts electronically
- Upload attachments and official documents
- Communicate with the Ministry of Human Resources
Before taking any step, the establishment must be registered on Qiwa and have an active account. Registration can be done via qiwa.sa.
The Nitaqat System and Its Impact on Recruitment
The Nitaqat system is a classification system for establishments based on localization (Saudization) ratios. It is divided into several color levels:
- Platinum, Gold, High Green, and Medium Green: These establishments receive privileges in recruitment, such as a higher number of visas and lower fees.
- Low Green: Limited recruitment.
- Yellow and Red: Restricted or nearly prohibited recruitment, and fines may be imposed.
The higher the percentage of Saudis in your establishment, the higher your Nitaqat classification, and the greater your recruitment privileges. This provides a strong incentive to comply with required localization ratios.
Step-by-Step Guide to Recruiting Labor for Companies
Step 1: Register on Qiwa and the Self-Service Program
Ensure your establishment is registered on Qiwa and subscribed to the Self-Service Program, which connects you with the Ministry of Human Resources.
Step 2: Apply for a Work Visa
Through Qiwa, submit an application for a work visa (Work Visa) for the required employee. The application is reviewed by the Ministry based on:
- Your establishment’s Nitaqat classification
- The current number of employees registered in the establishment
- The commercial activity of the establishment
Step 3: Pay Visa Fees
After the visa application is approved, pay the required fees electronically. Fees vary based on:
- Nitaqat classification
- Number of visas requested
- Type of profession
Step 4: Issuance of Visa by the Ministry of Foreign Affairs
After paying the fees, the visa is issued by the Ministry of Foreign Affairs and can be sent to the employee abroad to complete travel procedures.
Step 5: Employee Arrival and Post-Arrival Procedures
- Medical examination
- Fingerprinting
- Issuance of residency (Iqama)
- Registering the contract on Qiwa within 90 days of starting work
Required Documents
- Commercial registration of the establishment (valid)
- Certificate of membership in the Chamber of Commerce
- Signed employment contract with the employee
- Copy of the employee’s passport
- Establishment data on Qiwa
- Proof of visa fee payment
Approximate Fees
Fees vary and depend on:
- Visa fees: Range between 2000 – 5000 SAR depending on profession and nationality
- Residency issuance fees: Approximately 650 SAR annually
- Medical examination and health insurance fees: Vary by insurance company
- Levy fees for expatriates: 300 –
- Companion fees: For dependents if any
It is preferable to review the Qiwa platform or the Passports for updated current prices.
Visa Installments: The New Installment System
As part of improving the business environment, small and medium enterprises can now pay visa fees in installments through the Qiwa platform, easing financial burdens. This system is available for establishments with a good classification in Nitaqat.
Frequently Asked Questions (FAQ)
Q: How many visas can I sponsor for my company?
A: The number depends on your establishment’s classification in Nitaqat. Platinum and Gold establishments receive a higher number of visas compared to establishments with lower classifications.
Q: Can I sponsor labor without using the Qiwa platform?
A: No, the Qiwa platform is the official and only system currently for managing labor sponsorship requests for the private sector.
Q: How long does the visa issuance process take?
A: It ranges from two weeks to 8 weeks depending on the procedures and the issuing authority of the visa.
Q: Is there a difference between sponsoring labor for companies and domestic labor?
A: Yes, domestic labor is subject to the Ministry of Human Resources system through Masnad, while company labor is handled through Qiwa and the Labor Law.
Q: What are the penalties of the Nitaqat system for violating establishments?
A: Establishments in the Yellow and Red ranges may face financial fines, prevention from issuing new visas, and even suspension of government services.
Q: Can I sponsor labor if the establishment is new?
A: New establishments receive a temporary classification in Nitaqat, allowing sponsorship at specific rates during the first two years of establishment.
Summary
Sponsoring labor for companies in Saudi Arabia has become easier and more digitalized thanks to the Qiwa platform and the Nitaqat system. The key is to maintain a good classification in Nitaqat by employing Saudis and submitting your requests correctly through official channels.
