Saudi Arabia has introduced new limits on the number of work visas businesses can obtain, tightening access to foreign labour and creating different visa quotas based on how long a company has been operating.
Under the revised rules, businesses that have operated for less than two years can obtain a maximum of five work visas, while companies that have been in operation for more than two years can access up to 50 visas.
The changes could have significant implications for foreign workers seeking employment in Saudi Arabia, particularly those relying on small or newly established companies to sponsor their work permits.
The revised framework introduces specific limits where there were previously no quotas based on the age of a business.
The new rules provide that:
- Businesses operating for less than two years can obtain up to five work visas.
- Businesses operating for more than two years can obtain up to 50 work visas, either through a single application or multiple applications submitted within the same week.
- Businesses under the Establishing Programme begin with a quota of two work visas. Their quota can increase as they progress through the programme and attain a higher Nitaqat classification.
Nitaqat is Saudi Arabia’s system for classifying employers based on the proportion of Saudi nationals in their workforce.
The new system gives established businesses considerably greater capacity to recruit foreign workers than newly established companies.
For prospective employees, the sponsoring company’s age and Nitaqat classification could therefore become important factors when assessing a job opportunity in Saudi Arabia.
Foreign workers may need to consider more than salary, job title and the reputation of a prospective employer. The company’s eligibility and available visa quota could determine whether it is able to complete the employment and work-permit process.
The changes could be particularly relevant to workers from countries with large populations of nationals seeking employment in the Gulf, including India.
The new visa quotas form part of a broader tightening of regulations governing foreign workers and employment in the kingdom.
Rather than applying a uniform system to all employers, the revised framework links access to foreign labour more closely to a company’s operating history and workforce classification.
For smaller businesses, the restrictions could make workforce planning and overseas recruitment more challenging, particularly during the early stages of operation.
For foreign job seekers, the changes reinforce the importance of verifying an employer’s eligibility before paying recruitment fees or making commitments associated with a Saudi employment offer.
The latest changes follow other measures aimed at strengthening oversight of foreign employment.
In June, Saudi Arabia ended a work-permit exemption previously available to holders of the Premium Residency programme. Premium Residency holders seeking employment in the kingdom must now obtain a separate work permit before commencing work.
Saudi authorities have also moved against employers that hire foreign workers without valid permits. In February, employers found employing foreign workers without the required legal permits were made subject to a 10,000 Saudi riyal ($2,666) fine.
The latest visa quotas therefore signal a broader shift towards tighter regulation of foreign labour and greater alignment between a company’s workforce needs, its operational status and its eligibility to recruit overseas workers.
