Saudi Job Support Expands to SMEs, Micro Firms

Saudi Arabia's labor and employment support programs are increasingly reaching smaller businesses, with roughly 95% of supported establishments now classified as micro, small, or medium-sized enterprises. Backed hiring of Saudis reached 329,000 in the first half of 2026.

قوى remains the main official channel for employer services in the labor market, covering work permits, worker transfers, Saudization indicators, and contract-related services. From 15 April 2026, electronic contract authentication through قوى became mandatory for a Saudi employee to count toward an establishment's Saudization percentage.

Lower costs for small Saudi-owned firms

Support is designed to ease costs for eligible small businesses. For some Saudi-owned establishments, the first foreign worker can be renewed for SAR 100 instead of SAR 9,700, while some eligible firms qualify for the same SAR 100 renewal level on their first two workers. Eligibility depends on نطاقات status, establishment size, and whether the owner is Saudi and fully dedicated to the business.

Standard labor fees remain in place elsewhere. The monthly work permit levy is SAR 800 The annual work permit issuance or renewal administrative fee is SAR 650. Sponsorship transfer fees are SAR 2,000 for the first transfer, SAR 4,000 for the second, and SAR 6,000 for the third and each later transfer.

The focus on smaller firms matters for the community because micro and small businesses employ a large share of the workforce. Lower renewal costs and clearer digital processes through قوى help owners plan hiring, retain workers, and expand local employment.

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