Saudi Arabia ends work permit exemption for premium residency holders

Saudi Arabia has introduced a significant change to its employment regulations, ending the work permit exemption previously enjoyed by holders of its Premium Residency programme.

Under the new requirement, Premium Residency holders seeking employment in the Kingdom must now obtain a separate work permit before commencing work, according to Travel Biz report on Thursday.

This adds an extra compliance step for foreign professionals and employers alike.

The policy shift means that individuals granted Premium Residency status can no longer rely solely on their residency permit to take up employment.

What they are saying

Instead, they must secure a work permit through Saudi Arabia’s Qiwa platform, the Kingdom’s digital labour management system, before joining any employer.

The development forms part of Saudi Arabia’s broader efforts to strengthen labour market oversight while continuing to position itself as a destination for highly skilled foreign talent and investors.

• According to the updated guidelines, Premium Residency holders are now required to obtain a valid work permit through Qiwa prior to starting employment. In addition, employment contracts must be registered on the platform, while workers must also be enrolled with the General Organisation for Social Insurance (GOSI), in line with existing labour regulations.
• The Premium Residency programme, often referred to as Saudi Arabia’s “Green Card” initiative, was designed to attract investors, entrepreneurs, executives and highly skilled professionals by offering long-term residency benefits, including the ability to live, work and own property in the Kingdom without the need for a traditional sponsor.
• Previously, Premium Residency holders could accept employment without securing a separate work permit, making the programme particularly attractive to foreign professionals seeking greater flexibility in the Saudi labour market.

However, the latest regulatory adjustment removes that exemption, bringing Premium Residency holders under the same work authorisation framework that applies to other foreign employees.

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The new rules have also created uncertainty for existing Premium Residency holders. Saudi authorities have yet to clarify whether individuals who already hold Premium Residency status will be required to obtain work permits under the revised framework or whether a grace period will be provided to allow compliance.

• Until further guidance is issued, employers and employees are expected to closely monitor updates from relevant authorities to avoid potential regulatory breaches.

For employers, the policy change may require adjustments to recruitment and onboarding processes. Companies hiring Premium Residency holders will now need to ensure that work permits are secured and employment documentation properly registered before employees begin work.

What you should know

This latest policy change comes amid Saudi Arabia’s broader push to strengthen labour market compliance and enforce stricter employment regulations for foreign workers.

• In February 2026, Nairametrics reported that Saudi authorities introduced a new penalty framework imposing a fine of SR10,000 (approximately $2,666) on employers who hire foreign workers without valid work permits.
• The Ministry of Human Resources and Social Development said the measures were designed to formalise the labour market, curb workplace abuses, and ensure both employers and employees comply with existing labour laws and regulations.

The revised enforcement regime covers a wide range of labour-related violations, including the employment of foreign workers without proper authorisation, undocumented employment contracts, illegal recruitment practices, child labour offences, unlawful retention of workers’ passports, and violations of maternity and childcare protection provisions.