Kafala System and Iqamah in Saudi Arabia Explained

Kafala System in Saudi Arabia

If you ever plan to come to work in Saudi Arabia, it is very important that you understand the Kafala System, or sponsorship system, in Saudi Arabia.

1. Kafala or Kafeel system is a system followed in Saudi Arabia for regulating employment of expatriate workers.
2. Any expatriate worker entering the Kingdom requires sponsorship of a sponsor
   (known as Kafeel or foreign employer), who may be a Saudi citizen or a company, and shall remain under the sponsor’s responsibility during the term of the employment contract.
3. Since 14 March 2021 (Labor Reform Initiative), private-sector expatriate workers covered by the Labor Law can request an exit/re-entry visa, a final exit visa, or a job transfer to a new employer through Absher or Qiwa without the employer’s prior approval, subject to conditions (for example, the contract has ended or the notice period is respected). Domestic workers are not covered by these rules.
4. The Foreign Employer, known as sponsor or kafeel, under whose sponsorship a worker is recruited to Saudi Arabia, could be a Saudi national or a company. It is very important that you verify the credentials of the employer from a known contact (Maybe relatives or friends), or Indian Embassy/Consulate in Saudi Arabia to avoid unnecessary troubles later on.
5. Also make sure that your foreign employers are not barred from recruiting from India for violation of the provisions of Emigration Act. Check Foreign employers on the Prior Approval Category (PAC) List by clicking here .

Saudi officials describe these reforms as replacing the traditional kafala with a contractual relationship between worker and employer (Saudi Press Agency, March 2025). Your work permit and iqama are still issued through your employer, however. Viral reports in October 2025 that Saudi Arabia had newly “abolished” kafala did not cite any new official announcement, so rely on the official reforms above rather than those headlines.

Rights groups have long reported that some abusive employers exploit sponsorship rules, especially against domestic workers who fall outside the Labor Law.

Iqama in Saudi Arabia

An iqama is a residence permit, just like Aadhar Card in India, Emirates ID in UAE.

Iqama refers to the residence permit of any foreigner living and working in the kingdom of Saudi Arabia. These workers are commonly known as expatriates and their Iqamas are sponsored by the companies that employ them in Saudi Arabia. 

The local employer applies and secures the work permit and iqama so that the employee can legally work and live in the KSA. The employer is considered the local sponsor.

An iqama is issued to expatriates who arrive in KSA with an employment visa. The iqama is linked to your work permit. Since 2021, employers can issue or renew a private-sector work permit and the linked iqama for 3, 6, 9 or 12 months at a time (domestic workers excluded).

Keeping in mind the strict rules and regulations of the Saudi government, you must always comply with the conditions stated on your Iqama card. This includes details such as the validity period, which your employer chooses (3 to 12 months at a time in the private sector). Once your Iqama has expired, you need to request its renewal if your job demands you to stay in Saudi Arabia for a longer time.