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IMPACT – HIGH
What is the change? The Saudi government has placed restrictions on travel from additional countries to mitigate the spread of the COVID-19 virus.
What does the change mean? Nationals of Bahrain, Egypt, Kuwait, Iraq and the United Arab Emirates will not be permitted to enter Saudi Arabia. Other foreign nationals who have been in any of these countries or Italy or South Korea in the past 14 days will not be permitted to enter Saudi Arabia. Air and sea travel between Saudi Arabia and the United Arab Emirates, Bahrain, Egypt, Kuwait, Iraq, Italy, Lebanon, South Korea, and Syria has been suspended.
Analysis & Comments: The new restrictions are now in place and follow earlier restrictions on tourist and religious travel. The COVID-19 outbreak is an emerging situation that is changing rapidly. Deloitte will provide additional updates as information becomes available.
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. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? Saudi Arabia has made visas on arrival available to holders of valid U.S., U.K. and Schengen Area visas, regardless of their nationality.
What does the change mean? Holders of U.S., U.K. and Schengen visas may now travel to Saudi Arabia and obtain a visa on arrival at the airport, saving them the time it would normally take to apply for a visa at a Saudi Consulate.
Background: Saudi Arabia began issuing visas on arrival and tourist e-visas to nationals of 49 countries last September. The change allows visitors from these countries to obtain a multiple-entry visa valid for one year and stays of up to 90 days for the purpose of tourism.
Analysis & Comments: Last year’s visa policy change signaled Saudi Arabia’s desire to open the country to tourism, and the expansion of the visa-on-arrival policy is a further indication of this. To be eligible for a visa on arrival, foreign nationals holding valid visas from the U.S., U.K. and Schengen Area countries must have used the visa at least once and have a stamp from the issuing country in their passport. Travelers should note that the visa on arrival is valid only for tourist visits and cannot be used for business activities, work or performing umrah. While holders of U.S., U.K. and Schengen visas are now eligible for visas on arrival, they will not be eligible for Saudi Arabia’s electronic visa system.
IMPACT – MEDIUM
What is the change? Saudi Arabia has announced plans to eliminate the Nitaqat yellow category.
What does the change mean? Companies currently categorized in the yellow category will be moved later this month to the red category and will not be able to renew work permits, apply for residence permits, apply for block visas or submit commercial registrations until they move to a green category.
Background: The Nitaqat color-grading system is used to rank employer compliance with the “Saudization” regulations. Currently, employers in the yellow category are able to apply for residence permits and renew work permits for employees who have not yet completed two years of service. Once transferred to the red category, however, employers will not be able renew work permits or apply for residence permits. Similarly to employers in the yellow category, they will not be able to apply for new block visas, hire non-Saudi nationals, or transfer sponsorship. Additionally, commercial registrations will be blocked until the company moves to a green category.
Analysis & Comments: Companies currently in the yellow category should improve their Nitaqat ranking as soon as possible to avoid moving to the red category. If they are moved into the red category, employers will not be able to hire non-Saudi nationals, renew current work permits or apply for residence permits for current employees.
What is the change? The Saudi Embassy has begun issuing uniform business visas in place of work visit and commercial visit visas.
What does the change mean? Employees applying for commercial visit or work visit visas will now receive a business visa stamped “not permitted to work.” The uniform visa will be issued pursuant to a Letter of Invitation for either a Commercial Visit Visa, permitting business activities or for a Working Visit Visa, permitting hands-on work. Holders of the new uniform business visa will not be eligible for a residence permit (Iqama).
Background: The Saudi Ministry of Foreign Affairs (MoFA) has confirmed that Letters of Invitation for both work visit and commercial visit visas are still being issued and that the two visa types still exist, with a working visit visa still permitting hands-on work as per previous regulations. Additionally, MoFA has clarified the stamp stating “not permitted to work” denotes that holder is not eligible for an Iqama. The authorities are still in the process of reviewing the visas, and will issue updates/clarifications in the near future.
Analysis & Comments: Employers can submit Letters of Invitation for work visit and commercial visit visas, per usual. Once the visa is issued, employees will be able to use it as they would a work visit or commercial visit visa. Please contact your immigration provider with any additional questions.
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 has begun issuing tourist e-visas and visas on arrival for holders of U.S., U.K. and EU Schengen Area visas.
What does the change mean? Eligible visa holders can now apply for tourist visas online or upon arrival. Visas will be valid for one year, and will allow multiple entries and 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: In September, Saudi Arabia launched a new tourist visa system and began issuing tourist e-visas and visas on arrival for nationals of 49 countries. Officials have now moved to allow nationals of other countries to apply for tourist e-visas and visas on arrival provided they hold a U.S., U.K. or EU Schengen visa.
Analysis & Comments: The recent change expands the e-visa and visa-on-arrival system to U.S., U.K. and EU Schengen visa holders. Travelers should note that while these visas are valid for tourist visits, they cannot be used for business activities, work, or performing umrah.
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.
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.