It is not good news for expatriates working in Saudi Arabia as the government has stopped the transfer of sponsorship or generally known as Naqal Kafala to some sectors.
After the decision to waive off the Maktab Amal fee in the industrial sector in 2019, Jawazat has stopped the transfer of sponsorship to the industrial sector. The government has reduced the maktab amal fee to renew the iqama of expatriates for the industrial sector from SR 7,200 to SR 100.
What is Industrial Sector?
Currently, the government is taking only manufacturing companies in the industrial sector. Even the construction sector is treated as a non-industrial sector.
How will it affect expats working in the industrial sector?
The new decision will not have any bad effect on the employees already working in the industrial sector but those who want to transfer their sponsorship to this sector.
- Expatriates working in the non-industrial sector would not be able to transfer their sponsorship to the industrial sector.
- Expatriates working in the industrial sector can transfer their sponsorship to the non-industrial sector.
- Expatriates working in the industrial sector cannot transfer their sponsorship to another company working in the industrial sector.
Why did Jawazat stop the transfer of sponsorship?
You must be wondering to know the rationale to stop Naqal Kafala or transfer of sponsorship by the Saudi Government. Well, there is a reason behind it.
The government has recently reduced the maktab amal fee for expatriates working in the industrial sector from SR 7,200 to SR 100 while the companies working in the non-industrial sector will still have to pay SR 7,200. In the year 2020, non-industrial companies will have to pay SR 9,600 as maktab amal fee while the industrial sector would continue to pay SR 100.
There was a huge risk that a large percentage of expatriates would transfer from the non-industrial sector to the industrial sector to take benefit of this huge subsidy in the maktab amal fee.
Moreover, many business groups who are dealing with both industrial and non-industrial sectors would like to transfer the sponsorship of their employees from one company to another to take this advantage of the subsidy.
Considering all these factors, the government has stopped the transfer of sponsorship to the industrial sector.
If you have experienced anything like this, please share your experience. If you know any other segment which has been included by the government for the purpose of waiving off the fee, please drop a comment below.