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?

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

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

Is there any fine on Saudi Employer?

The Saudi employer who allows his expat worker to work for someone else in return for a sum of money would be punishable with;

  1. SR 50,000 fine.
  2. 3 months Jail.
  3. 3 years ban on hiring expat workers.

Source: Jawazat

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Steve has been living in Saudi Arabia since 2013 and writing about Saudi rules, regulations, guides, and procedures since then.