Everything You Need to Know About Saudi Iqama: Features, Benefits

1. Enhanced Features of the Saudi Iqama (Residency Permit)

The Saudi Iqama, issued by the Ministry of Interior through the General Directorate of Passports (Jawazat), has evolved from a simple card into a sophisticated digital identity document. The latest features make it a multi-purpose tool for residents, offering advanced technological benefits that are central to the Kingdom’s Vision 2030 for digital transformation.

The modern Iqama, especially in its digital format available through platforms like Absher and Tawakkalna, represents a significant advancement, integrating enhanced technologies to offer greater convenience, security, and utility for KSA residents.

Key Features of the Upgraded Iqama

• Unique Identification Number: Each cardholder is assigned a permanent 10-digit Iqama number, which serves as a unique identifier for all government and private sector transactions throughout their residency in the Kingdom.
• Digital Iqama (Muqeem ID): The physical card is complemented by a Digital Iqama, accessible through the Ministry of Interior’s “Absher Individuals” app and the “Tawakkalna” app. This digital version is officially approved and can be presented in place of the physical card for most verification purposes.
• Advanced Smart Chip & Biometrics: The physical Iqama contains a smart chip storing the holder’s personal data, photo, and biometric information (fingerprints). This data is linked to the national database, ensuring high levels of security and privacy.

Seamless Digital Integration:

• Absher Platform Integration: The Iqama is the key to accessing the Absher platform, the Kingdom’s primary e-government portal. Absher allows residents to perform hundreds of services online, from renewing the Iqama and driving licenses to managing travel permits and paying fines.
• Tawakkalna Services App: Originally a COVID-19 contact tracing app, Tawakkalna has evolved into an essential services app that hosts the Digital Iqama, driving license, vehicle registration, and health status (via the Tawakkalna Health Passport).
• QR Code for Instant Verification: The Digital Iqama features a dynamic QR code that can be scanned by authorities and service providers for instant, secure verification of the holder’s identity and status, preventing fraud.
• Durable and Secure Design: The physical card is made from a durable polycarbonate material, designed to resist damage and forgery, ensuring its longevity and integrity.
• Residency and Employment Data: The Iqama serves as the official proof of legal residency and links directly to the holder’s employment contract and sponsor information through the Ministry of Human Resources and Social Development’s systems.

2. What is the Saudi Iqama?

The Iqama is a government-issued residence permit that allows foreign nationals or expatriates to live and work in Saudi Arabia. It serves as your official identification during your stay in the Kingdom. With an Iqama, you can gain employment, conduct banking transactions, rent property, obtain a driver’s license, and more.

The Iqama is typically valid for one year and must be renewed annually. All residents, including children, are required to have their own Iqama. Once a foreign worker has obtained their Iqama, it is easier for them to apply for visas for their family members to join them in the Kingdom.

3. How is the Iqama Related to Business Setup?

The Iqama plays a pivotal role in establishing a business in Saudi Arabia. It is a mandatory requirement for individuals intending to set up a foreign entity within the Kingdom. This “Business Iqama” acts as a pathway for foreign entrepreneurs to navigate the intricacies of doing business in Saudi Arabia.

If you’re setting up your business in the Kingdom, you must appoint a General Manager for the new Saudi entity who needs to obtain their own Iqama. Without the General Manager’s Iqama, you will not be able to open a corporate bank account or complete other critical compliance steps. To receive the Iqama, the appointed General Manager will have to travel to Saudi Arabia to complete the process in person.

4. What are the benefits of Iqama in Saudi Arabia?

1. Seamless Access to Government Services via Absher

The Iqama is your single point of entry to the Kingdom’s digital government services through the Absher platform.

• E-Government Hub: Your Iqama number is your username for Absher, allowing you to renew residency permits, issue exit/re-entry visas, renew vehicle registrations (Istimara), transfer vehicle ownership, and pay traffic violations.
• Family & Dependent Management: Residents can manage the Iqamas and travel permits for their dependents (spouse, children) directly through Absher. A householder’s residence permit also covers their spouse and legal minors. However, sons and daughters over the age of 18 must obtain separate visas by paying the applicable fee.
• Legal Status Verification: Use Absher to check your Iqama validity, available funds in your service account, and any travel restrictions or legal notices.

2. Healthcare Access and Health Insurance

The Iqama is fundamentally linked to your health and well-being in the Kingdom.

• Mandatory Health Insurance: It is illegal to issue or renew an Iqama without valid health insurance from a Council of Cooperative Health Insurance (CCHI) approved provider. Your insurance status is electronically linked to your Iqama.
• Access to Medical Services: Hospitals and clinics require your Iqama to verify your identity and health insurance coverage before providing treatment.
• Tawakkalna Health Passport: Your health status, including vaccination records and test results, is displayed in the Tawakkalna app, linked to your Iqama.

3. Secure Travel and Border Control

While the Iqama itself is not a travel document to leave the country, it’s essential for all travel-related procedures.

• Exit/Re-Entry Visas: You cannot leave and re-enter Saudi Arabia without a valid exit/re-entry visa, which is issued electronically and linked to your Iqama via Absher. When an employee leaves Saudi Arabia temporarily, the employer must safeguard the employee’s residence permit until their return.
• Final Exit Visa: To obtain a final exit visa, the physical residence permit is submitted to the passport authority (Jawazat) with a final exit visa request form.
• Domestic Travel: The Iqama is the primary identification document required for booking and boarding domestic flights, trains, and buses.

4. Essential for All Banking and Financial Transactions

The Iqama is the bedrock of your financial life in Saudi Arabia.

• Opening Bank Accounts: No bank account can be opened without a valid Iqama. Banks use it for identity verification (KYC) and link your account to your Iqama number.
• Digital Payments and Remittances: All financial apps, digital wallets (like STC Pay), and international remittance services require a valid Iqama for registration and transactions.
• Financing and Loans: Obtaining personal or vehicle financing is impossible without a valid Iqama and salary certificate, both of which are verified through government systems.

5. Utility, Accommodation, and Everyday Life

Your Iqama is required for nearly every essential service.

• Renting a Home: Real estate contracts must be registered on the Ejar platform, which requires the landlord’s and tenant’s valid Iqama details.
• Utility Bills: Setting up electricity, water, and internet services requires a valid Iqama.
• Mobile and SIM Cards: You cannot purchase a mobile phone SIM card without providing your Iqama for biometric verification with the Communications and Information Technology Commission (CITC).

5. How to Apply for a Saudi Iqama

The application process is typically managed by the employer (sponsor). Here’s a general overview of the requirements and steps:

Requirements for Iqama Issuance

To obtain an Iqama, expatriates and their sponsoring employers must meet specific requirements. These generally include:

• A valid passport and work visa.
• A valid employment contract.
• A medical certificate from an approved center attesting to good health.
• Valid health insurance coverage.
• An active work permit issued by the Ministry of Human Resources and Social Development.

Application Steps

• Work Visa and Arrival: The employee enters Saudi Arabia on a work visa sponsored by the employer.
• Medical Check-up: Within days of arrival, the employee must undergo a medical test at an approved clinic. The results are linked electronically to the Jawazat (Passports) system.
• Biometric Data: The employee must visit a Jawazat office or Absher self-service kiosk to provide biometric data (fingerprints and facial scan).
• Fee Payment: The employer pays the required fees for the Iqama issuance and work permit through the SADAD payment system.
• Iqama Issuance: The employer completes the application via their business portal (Muqeem or Absher Business), and upon approval, the physical Iqama card is printed and delivered.

6. Iqama Validity and Application Timelines

How long is the Iqama valid?

The Iqama is typically valid for one year and must be renewed annually. Residence permits must be renewed at least three days before their expiration date to avoid penalties.

Application Timelines and Processing

• Processing Time: The entire process, from arrival to receiving the physical Iqama, typically takes 1 to 2 weeks. It is legally required to be completed within 90 days of arrival.
• Digital Iqama Access: The Digital Iqama becomes available in Absher and Tawakkalna as soon as it is issued in the system, often before the physical card is printed.

7. How much does the Iqama cost?

The cost of an Iqama varies, as fees can change over time. The employer is legally responsible for all costs. Key fees include:

• Work Permit (Maktab Amal) Fee: SAR 9,600 per year (for companies with more Saudis than expats).
• Iqama Fee: SAR 650 per year.
• Dependent Fee: SAR 400 per month (SAR 4,800 per year) for each dependent.
• Health Insurance: Varies by provider, age, and coverage, but typically ranges from SAR 500 to SAR 2,000+ per person per year.

8. Iqama Renewal, Updates, and Transfers

Renewal Process

The Iqama must be renewed annually. The process is now fully digital via Absher.

• Health Insurance: The employer must renew the employee’s and their dependents’ health insurance.
• Fee Payment: The employer pays the renewal fees for the work permit and Iqama via SADAD.
• Absher Renewal: The employer processes the renewal through their Absher Business or Muqeem account.
• No New Card: If the existing card has not expired (physical cards are often printed with a 5-year validity), a new card is not required. The validity is updated electronically and reflected in the Digital Iqama.

Lost or Damaged Iqama

In cases of a lost or damaged residence permit, it can be replaced.

• Report the Loss: Report the loss immediately through the employer’s Absher Business account to prevent misuse.
• Pay Replacement Fee: A fee of SAR 1,000 is required for re-issuance.
• Re-issuance: The employer applies for a replacement card, which will be stamped as “Replacement” and carry the same validity as the original.

Updating Personal Information

All updates must be done officially through Jawazat, typically initiated by the sponsor.

• Change of Profession: Requires an official process through the Ministry of Human Resources and Jawazat.
• Passport Information Update: When you renew your passport, the new details must be updated in the Jawazat system via Absher. This is a critical step known as “Naqal Maloomat.” Failure to do so can prevent you from traveling.

Iqama Transfer Rules

An Iqama transfer refers to a change in sponsorship, which typically occurs when an employee switches companies. This process involves several government entities and depends on the regulations of the current company and the employer’s willingness to release the employee.

9. Legal Obligations and Penalties

Mandatory Carrying:

• You must carry your Iqama (physical or digital) at all times. Authorities can request it for identification at any time.

Penalties for Non-Compliance:

• Failure to Renew: First-time violators pay a fine equal to the renewal charge (SAR 500). The fine doubles for second-time violators. A third violation can lead to deportation. Not renewing the Iqama of a General Manager can lead to a freeze of the company bank account and disruption of government services.
• Working for a different sponsor than the one listed on your Iqama is illegal.
• Employer’s Responsibility: The employer is legally responsible for all costs associated with the issuance and renewal of the Iqama.