Recruiting Talent in Saudi Arabia: Kafala & Sponsorship

Kafala sponsorship, in its traditional form, is gone. Expatriate employment now runs on registered digital contracts through Qiwa and Absher — faster for employers, but stricter on compliance.

Whether you're hiring in Riyadh, Jeddah, Dammam or beyond, here's how recruiting talent in Saudi Arabia works under the reformed sponsorship rules, and how to bring in foreign talent the right way — without falling foul of the Kafala and sponsorship framework.

The short answer: Kafala is gone, contracts run the show

Under the reformed labour framework, an expatriate employee's iqama (residence permit) is tied to a valid employment contract — not to a single individual "sponsor" who controls the worker's movements. The practical shifts are significant:

• Workers can change employer through Qiwa once they have served their contractual notice period — no No-Objection Certificate (NOC) from the current employer is required.
• Employers are prohibited from holding workers' passports.
• Exit and re-entry visas are requested by the worker directly through Absher; employer approval is no longer a legal requirement under the reformed system.
• Labour disputes are filed directly with the Labour Court via Qiwa and Najiz, without automatic deportation risk to the worker.

The takeaway for employers: you keep a strong, contract-based relationship with your team — but you keep it by being a compliant, attractive employer, not by controlling paperwork.

What replaced Kafala — the contract-based system

Every legal employment relationship for expatriates now runs on a documented, government-registered contract generated through Qiwa. This is what gives the worker their legal status, links them to your establishment file with the Ministry of Human Resources and Social Development (MHRSD), and drives their iqama renewal.

What this means for employers day to day

You still "sponsor" the iqama in the administrative sense — your establishment issues the work visa and pays the associated government fees. But you no longer have veto power over an employee's ability to leave the country or move on after their notice period. In practice, retention now depends on competitive salaries, timely wage payment through the Wage Protection System, and a good working environment — exactly what a modern labour market should reward. If you're new to the process, our guide on how to renew an Iqama covers the residence side in detail.

The platforms every employer must know

Recruitment and sponsorship-style processes in the Kingdom are almost entirely digital. Here are the systems you will use, and what each one is for:

• Qiwa (MHRSD) — your primary workspace: electronic job offers, digital employment contracts, sponsorship/iqama transfers, Nitaqat status, and labour dispute registration.
• Absher (Ministry of Interior) — iqama issuance and renewal payments, exit/re-entry visas, and personal status services.
• Muqeem (Jawazat / General Directorate of Passports) — residence permit data management, exit/re-entry and final exit visa issuance, dependent levy and residency checks.
• Najiz (Ministry of Justice) — labour court case filing, contract documentation and enforcement of judgments.
• Nafath — the unified digital identity login used by both employers and workers to access Qiwa, Absher and other government systems.
• Balady (Ministry of Municipal and Rural Affairs and Housing) — municipal licences for your business premises; your commercial location must be legally licensed before you hire.
• Etimad (Ministry of Finance) — government procurement and contractor registration, relevant if you recruit for government projects.

Step-by-step: hiring foreign talent in 2026

Before you can hire anyone

Your establishment must be in order first. That means:

• A valid commercial registration and a current municipal licence for your premises .
• An active MHRSD establishment file with a compliant Nitaqat (Saudization) status — this determines your quota and eligibility to bring in expatriate workers.
• Registration with the Wage Protection System so salaries are paid and verified through official channels.

Issuing the job offer and contract

1. Log in to Qiwa using Nafath and issue an electronic job offer to your candidate, stating salary, role, benefits and duration.
2. The candidate accepts the offer, then you generate the digital employment contract.
3. The worker reviews and signs electronically on Qiwa (also via Nafath). This registered contract is the legal backbone of the whole relationship.

Work visa, arrival and iqama

1. After the contract is registered, apply for the work visa through the MHRSD and Jawazat channels; the visa is then stamped at a Saudi consulate in the worker's home country.
2. Once the employee arrives in the Kingdom, complete the required medical checks and fingerprints.
3. Issue the iqama and pay the associated fees and levies through Absher and Muqeem. The worker is now legally able to live and work for your establishment.

Nitaqat and Saudization — the compliance layer

You cannot talk about recruiting talent in Saudi Arabia without Nitaqat. This is the Saudization programme that scores your establishment on the ratio of Saudi nationals to expatriates. Your Nitaqat band (from red through to platinum) directly affects how many work visas you can obtain, whether you can transfer employees in, and the fees you pay. Certain roles and professions are also fully reserved for Saudi nationals. Before you plan an expatriate hiring drive, check your Nitaqat status on Qiwa and build Saudi hiring into your workforce plan — it is the single most common thing that trips up growing companies.

Costs to budget for

Exact figures vary by profession, company size and Nitaqat band, but here is what typically sits on an employer's cost sheet when hiring an expatriate:

• Work visa and iqama issuance fees — paid to the government at issuance and again at each renewal, typically renewed annually.
• The expatriate labour levy — a recurring monthly government charge which scales with your Saudi-to-expat ratio.
• The dependent levy — a monthly fee for each family member the worker brings, paid via Muqeem/Absher.
• Medical insurance — mandatory health cover for the employee (and dependents); the cost depends on the plan, age and coverage level.
• Medical exam and fingerprinting on arrival, plus recruitment agency fees if you use one.

Build these into your total cost of employment before you agree a salary — the levies in particular add a meaningful monthly amount on top of the headline pay.

Common mistakes that get employers in trouble

• Holding a worker's passport — this is prohibited and exposes you to penalties.
• Assuming you can block an employee from leaving or transferring — after the notice period, mobility is the worker's right through Qiwa and Absher.
• Letting Nitaqat slip into the red — this freezes your ability to issue or transfer visas.
• Late wage payments — the Wage Protection System flags these, and they can trigger disputes and compliance issues.
• Hiring before your Balady licence and establishment file are valid — the process simply won't complete.

Get the fundamentals right and recruiting in the Kingdom is genuinely faster and more transparent than it has ever been.

Ready to post your roles? Browse the latest jobs in Saudi Arabia on Saudi Living and reach residents and expats across Riyadh, Jeddah, Dammam and the wider Kingdom.

FAQs

Do I still need to be a "sponsor" to hire an expat in Saudi Arabia?

Your establishment still issues the work visa and iqama and is administratively responsible for the employee. But the old Kafala control — holding passports, blocking exits, requiring an NOC to transfer — no longer applies. The relationship is governed by a registered contract on Qiwa.

Can an employee leave my company without my permission?

After serving their contractual notice period, yes — an employee can transfer to another employer through Qiwa without a No-Objection Certificate from you. This is why competitive pay and retention matter more than ever.

What is Nitaqat and why does it affect my hiring?

Nitaqat is the Saudization programme that measures your ratio of Saudi to expatriate staff. Your band determines how many expatriate work visas you can obtain and the fees you pay, so it directly limits or enables foreign recruitment.

How long does it take to hire and onboard a foreign worker?

Timelines vary, but the digital contract on Qiwa is quick. The longer parts are the work visa application, consular stamping in the home country, and on-arrival medical checks and iqama issuance — often several weeks in total.

Which platform do I use for what?

Use Qiwa for job offers, contracts and transfers; Absher and Muqeem for visas, iqama and levies; Najiz for labour court matters; and Nafath to log in to all of them securely.

Can I hire remote or freelance talent instead of sponsoring an iqama?

There are freelance and remote work routes in the Kingdom with their own legal status, which can suit certain roles. For full-time, on-the-ground staff, the sponsored contract-based route remains standard.

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