Saudi Arabia sets new work visa limits for businesses, foreign workers

Saudi Arabia has introduced new regulations that cap the number of work visas businesses can acquire, creating a clearer distinction between newly established firms and more established employers. This revision aims to manage the hiring of foreign workers within the kingdom.

Under the updated framework, companies operating for less than two years are eligible for a maximum of five work visas. In contrast, businesses with an operating history exceeding two years can obtain up to 50 visas, either through a single application or multiple submissions within the same week. This distinction is significant for foreign nationals seeking employment, especially those who might have previously relied on smaller or recently formed companies for sponsorship.

Companies participating in the "Establishing Programme" follow a separate set of rules. These firms begin with a quota of two work visas, which can increase as they advance in the program and achieve a higher Nitaqat classification. Nitaqat is Saudi Arabia's system for categorizing employers based on their workforce composition and the employment of Saudi nationals.

The new limits represent a notable departure from the previous system, which did not impose specific visa caps based on a company's age. The changes could influence recruitment strategies for international workers, particularly from countries like India, which has a substantial number of nationals seeking employment in the Gulf. Prospective employees may need to consider a company's operating history and Nitaqat status alongside salary and job title when evaluating offers.