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IMPACT – MEDIUM
What is the change? Saudi Arabia has begun issuing tourist e-visas and visas on arrival for nationals of 49 countries.
What does the change mean? Eligible travelers can now apply for tourist visas online or upon arrival. Visas will be valid for one year, and good for multiple entries and for stays of up to 90 days during the one-year period. The visas are not valid for business or work activities, only tourism.
Additional information: The countries whose nationals are eligible for the tourist visas are:
* Including Hong Kong, Macau and Taiwan.
Fees for e-visas and visas on arrival will be 440 riyals (300 riyals for the visa, 140 riyals for mandatory health insurance), excluding taxes and processing fees. Additional information is available on this official online portal. Applicants should be sure they use the official website when applying for visas, as officials are concerned about the possibility of unofficial or fake websites.
Nationals of countries not listed above may apply for a Tourist Visa at an embassy or consulate of Saudi Arabia.
Analysis & Comments: The e-visa and visa on arrival programs are a sign that Saudi Arabia is opening up to international tourism. Travelers should note, however, that while these visas are valid for tourist visits, they cannot be used for business activities, work, or performing umrah.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? Saudi Arabia’s Shura Council has approved a plan for a new residence permit (iqama) program for highly skilled foreign experts, investors and entrepreneurs.
What does the change mean? The “privileged iqama” system will allow holders certain rights, such as residence rights, the right to recruit workers, the right to own property and the right to issue visitor visas. Additionally, holders of the privileged iqama will be able to enter and leave the Kingdom without prior permission from a sponsor. Under the new program, two types of iqama permits will be offered: a permanent iqama with an unlimited validity period and a temporary iqama with a one-year validity period, renewable.
Eligibility requirements:
Applicants must hold certain professional or scientific skills or own a company in Saudi Arabia (specifics to be determined), be over 21 years old, hold a valid passport and have a clean criminal record.
Cancelation of the iqama:
The privileged iqama can be canceled if the holder does not comply with the stipulations set out in Article 7 of the law. Additionally, the privileged iqama will be canceled if the applicant provides false information on the initial or renewal application, or if the holder is convicted of a crime or is deported.
Background: Throughout the region, governments are beginning to offer residence programs that allow foreign nationals to reside in their countries for longer time periods and afford them certain rights that were not previously available. In the UAE, for example, the government introduced 10-year residence investor visas to recruit qualifying investors to the country. Qatar recently launched a permanent residence program as part of its Vision 2030 development plan. Saudi Arabia’s decision to launch a privileged iqama residence system aims to stimulate investments into the Kingdom by making it easier for high-skilled labor to remain in the country and for recruitment of workers.
Analysis & Comments: The residence program is good news for companies because it will allow them to more easily recruit and retain foreign employees in Saudi Arabia. While certain aspects of the privileged iqama, such as application fees, have not yet been solidified, more information should be available closer to the implementation date.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? The Saudi Ministry of Labor and Social Development has announced measures that ease Saudization rules for private-sector employers whose Nitaqat rating is High Green or Platinum.
What does the change mean? A new calculation tool allows employers who have been in the High Green ranking for 13 weeks or longer to obtain recalibration of their Saudization percentages within one week of a Saudi employee being hired (or terminated). The ministry has also announced that companies rated High Green or Platinum that need to apply for a compensatory visa to replace a departing foreign worker within six months of departure in certain designated shortage occupations are able to do so by applying directly through the ministry’s online platform.
Background: Over the past two years, Saudi authorities have tightened Saudization rules and hiring quotas for Nitaqat levels. Only companies in the two highest tiers, High Green and Platinum, are eligible to apply for block visas and receive government contracts. Previously, all employers’ Saudi-to-foreign worker ratios were calculated on a weekly prorated basis over six months following the hiring or loss of a Saudi employee.
Analysis & Comments: The two measures signal an easing of Saudization rules, at least for companies with high Nitaqat compliance rankings and for designated occupations deemed by the government to be in shortage of local talent. The industries designated by the ministry include engineering, medicine, nursing, IT, pharmacy, medical technology, accounting and financing, although the list is subject to change. Consistent with this trend, Saudi authorities recently eliminated labor market testing and lengthened the validity period of block visas from one year to two years.
What is the change? Saudi Arabia will again issue block visas for two-year durations without additional fees for private sector employers.
What does the change mean? The change reverses a policy imposed in 2017 that reduced the validity period of block visas from two years to one year.
Background: In October 2017, the Ministry of Labor restricted block visas to one-year validity, citing local labor market conditions. Saudi labor authorities have taken numerous steps to encourage hiring of Saudi nationals in the private sector. The ministry grants block visas to companies seeking to sponsor foreign nationals to fill specific job titles. Companies must know the exact position to be filled when applying for a block visa. After obtaining a block visa, the company may then hire a foreign national for the job and apply for a work visa that matches the approved block visa.
Analysis & Comments: The policy eases one of the recent Saudization rules and allows employers a longer time frame to recruit expatriates employees and assign work visas.
What is the change? An online process has been introduced for foreign engineers to complete their registration with the Saudi Council of Engineers before applying for a work visa.
What does the change mean? Foreign engineers may now complete mandatory registration procedures using the online platform. They should register, upload academic and professional qualifications and other supporting documents, and pay the fee online to obtain temporary membership in the Saudi Council of Engineers before proceeding with work authorization requirements.
Analysis & Comments: The requirement that foreign engineers register with the Saudi Council of Engineers is not new, but the introduction of the online platform should ease the process. Employers are reminded that since last year, foreign engineers seeking to work in Saudi Arabia have been required to meet stricter eligibility criteria, including having a mandatory five years of experience and passing a professional exam given by the Saudi Council of Engineers.
High Priority
What is the immigration news? Saudi Arabia has eliminated the requirement that employers advertise jobs on the Taqat portal, allowing them to apply for block visas directly with the Ministry of Labor.
Additional information: Labor market testing has been mandatory since 2016, requiring employers to advertise jobs locally on the ministry’s Taqat portal before seeking work authorization for a foreign national. The change is intended to improve the process for employers.
BAL Analysis: The elimination of the Taqat job-posting requirement and reorganization of the systems are a major change in the work authorization process. Employers should anticipate overall faster timelines. Employers may apply for block visas for multiple job titles under one application. Only one application at a time may be requested with the Ministry of Labor and requirements will depend on whether the company is seeking initial block visas for the first time or seeking to expand the number of existing foreign employees. Employers who receive a reply on an application from the ministry must wait 30 days to submit their next application. Processing is supposed to take 3-7 days, but employers should anticipate delays extending beyond 10 days.
This alert has been provided by the BAL Global Practice group and our network partner Tools and Solutions in Saudi Arabia. For additional information, please contact your BAL attorney.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
IMPACT – HIGH
What is the change? Individuals traveling from Bahrain to Saudi Arabia on either a multiple-entry or a single-entry visit visa will be required to enter and exit Saudi Arabia using the specified mode of entry (air or land). The change has not been officially announced or confirmed by immigration authorities, but has been implemented and applied in practice.
What does the change mean? Previously, individuals living in Bahrain but working in Saudi Arabia were able to commute to Saudi Arabia for business purposes regardless of the specified mode of entry. Border immigration officials are now enforcing the mode-of-entry specification and are not allowing individuals with visit visas with the “air” mode of entry to go through the Bahrain-Saudi Arabia causeway except on an exceptional basis.
Analysis & Comments: When businesses are applying for a Saudi Arabian visit visa from a Gulf Cooperation Council country (excluding Qatar), they have an option to mark the mode of entry as “open” rather than the specified “air” or “land” mode of entry. For future visit visa applications, employers are encouraged to take note of this option to avoid delays when employees travel to Saudi Arabia.
What is the change? Later this year, Saudi Arabia will introduce an electronic visitor visa for foreign nationals attending sporting events or concerts.
What does the change mean? The new visitor visa is restricted to foreign nationals traveling to Saudi Arabia for designated sporting or cultural events and cannot be used by business visitors or in lieu of other visas such as work, residency or pilgrimage visas.
Analysis & Comments: Employers and foreign nationals traveling to Saudi Arabia on business are reminded that they may not conduct business activities when traveling with the new visitor visa. The new visa is only for attending sporting events or concerts and is intended for tourism purposes. Additional updates will be provided as the visa is made available.
What is the change? Under a new policy scheduled to begin in September, foreign nationals will be required to register their rental housing agreement in the government’s Ejar network before they are able to obtain a work permit. The Ejar system standardizes rental agreements and procedures and allows tenants to pay rent electronically.
What does the change mean? Foreign nationals applying for new and renewal work permits will need to use the standardized rental form available through Ejar and then register the agreement in the system before applying for their work permit.
Background: The Ejar system recently introduced a standardized rental agreement form to be used for residential and commercial property leases. The form is intended to reduce the number of landlord-tenant disputes and create uniform procedures.
BAL Analysis: Employers should anticipate the introduction of the new requirement next month and factor in additional time to register their expatriate employees’ rental agreements as part of the work-permit application process. Authorities have not clarified details, such as whether leases naming the employer as the tenant will be accepted, but further announcements are expected in coming weeks.
This alert has been provided by the BAL Global Practice group and our network provider Tools & Solutions located in Saudi Arabia. For additional information, please contact your BAL attorney.
What is the change? Saudi Arabia has ordered approximately 16,000 Saudi students in Canada to leave the country following a diplomatic dispute that erupted between the two countries last week.
What does the change mean? While there is no immediate impact on other Saudi nationals traveling to or living in Canada or to Canadian nationals traveling to or living in Saudi Arabia, the situation is fluid and visas could be impacted if the rift deepens.
Key points:
BAL Analysis: Saudi officials said Wednesday that they are considering additional retaliatory measures against Canada. BAL is watching developments and will inform clients of any changes that affect visas or work permits for Saudi and Canadian nationals. In the meantime, companies should account for all Saudi employees in Canada and Canadian employees in Saudi Arabia.
This alert has been provided by the BAL Global Practice group. For additional information, please contact your BAL attorney.