SR 50,000 fine on self-employed expats in KSA

The Saudi government has imposed a fine of SR 50,000 on freelancers, self-employed expats, and those who work without Iqama transfer in Saudi Arabia.

Who are self-employed expats?

1- Freelancers are those expats who offer their services without any commercial registration such as plumbers, electricians, painters, beauticians etc.

2- Self-employed expats are those who are running a business under the name of a Saudi person but in reality, they own the business. It is a cover-up business that is illegal in Saudi Arabia. The legal way to work is by applying for a SAGIA license.

3- The third category of expats are those who work for another employer without an Iqama transfer. It is illegal for expats to work for anyone except their employers.

4- It is worth noting that investment in the stock market is not an illegal activity and hence does not fall under this category.

What is the punishment for employees?

Any expat who is self-employed shall be subject to the following penalties;

  1. SR 50,000 fine.
  2. 6 months Jail.
  3. Deportation.

punishment for self-employed expat

Is there any fine on Employer?

The employer who allows his expat worker to work for someone else (self-employed) in return for a sum of money would be punishable with;

  1. SR 100,000 fine.
  2. Deportation if he is an expat.
  3. 12 months Jail.
  4. 5 years ban on hiring expat workers.

PUnishment on employer to allow an expat to be self-employed

Source: Jawazat

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Steve has vast experience in writing about Saudi rules, regulations, guides, and procedures.