With the launch of the 5-year physical Resident ID card (also known as the Iqama or Muqeem card), which is part of Saudi Arabia’s new residency system, there has been a lot of confusion about this new facility for many expatriates. The card’s period of expiration is determined by its validity but, under this framework, legal residency has to be renewed and complied with annually.
Many people think that the expiry date on their physical card represents the expiry date of their residency period. The Kingdom has now made it separate from the Absher, Muqeem and Qiwa, the two types of residency managed using digital platforms with the government.
Difference Between the Physical Card and Residency Status
The most common mistake is due to the two structure system. The physical Iqama card is just an identification card, it is only to ensure hassle-free re-printing of cards on an annual basis.
But, having a legal right to reside in and work in Saudi Arabia is entirely based on the live digital residency provided by your employer and government records. Even if the expiry date has still several years in the card, if you don’t make the annual renewal the card is immediately de-activated in the system.
Why Saudi Arabia Introduced the 5-Year Iqama Card?
The Saudi authorities decided to create the five-year card as a way of streamlining administrative procedures and cutting the printing and delivery cost. Residents are not required to get a new plastic card each year, but residents will continue using the same card if it is lost, damaged, or it has a 5-year expiration.
This process also enables the employer to handle digitized renewals, rather than waiting for document production. The vast majority of renewals are reduced to an electronic process that occurs in a timely fashion after being satisfied.
What Expats Still Need to Renew Every Year?
There are a couple of important requirements that need to be fulfilled on an annual basis even if you have a 5 year card. The first and foremost of the crucial ones is the government residency fee which is approximately SAR 650 per year for expatriate employees.
Employers will also be required to pay the work permit levy on the Qiwa platform. These costs vary between SAR 7200 and SAR 9600 per foreign employee per annum, depending on the amount of Saudization which has been achieved.
Dependent Fees Remain Mandatory
If the sponsor is an expat, then family members’ fees have to be paid annually. The current charge is SAR 400 per month per dependent or SAR 4,800 a year per family member sponsored.
Such payments have to be made prior to digital residency renewals. If dependent fees are not paid, the process of renewal is automatically stopped.
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Health Insurance and Qiwa Verification Are Critical
Saudi Arabia’s residency system has a strong link with health insurance databases. All residents and dependent persons shall have medical insurance which shall be approved by the Cooperative Health Insurance Council.
Meanwhile, employment contracts are to be confirmed via the platform called Qiwa. The authorities also make sure that the job in the Iqama is consistent with the employee’s job. Renewal could be delayed, or compliance problems could arise if there is a mismatch.
Traffic Fines Can Block Your Renewal
Ignored problem is fines for traffic violations, which go unpaid. All charges with regard to the resident’s Iqama number should be removed from the database before the Iqama can be renewed digitally.
This means even a minor discrepancy for a non-payment made is enough to cause temporary suspension of the residency extension application process until the appropriate payment is made.
How the Saudi Digital Renewal Process Works?
The process is mostly conducted electronically (Absher or Muqeem). Typically, the process starts about 30 days prior to the expiry date of residency.
Once all government fees, insurance verification and Qiwa checks are done, the sponsor completes the renewal digitally. In much of those cases, approval takes place within 24 hours without the need to obtain a new physical card.
Penalties for Missing Renewal Deadlines
There are harsh consequences for residency renewal late in Saudi Arabia. This may lead to a SAR 500 fine for the first delay, and a SAR 1000 fine for the second delay.
If this happens repeatedly, it may result in more serious legal issues for employers and employees and particularly if the residency lives out completely in the system.
Why Must Expats Set Separate Renewal Reminders?
The most serious concern for the new system will be using the “print” card expiry date as a reference point. The physical card may still be good for years, so many residents overlook the yearly schedule for renewing the digital card.
Recurring calendar alerts are strongly recommended for expats who are advised to set, and are based on the actual residency expiry date that will appear inside Absher as opposed to relying on the card.
FAQs
Have a 5-year Iqama card does that mean I can reside in it for 5 years?
No. Your digital residency status must be renewed periodically, typically annually, but the physical card could be valid for five years.
What occurs when my electronic residency expires?
Although you may have the Iqama card in your possession, if its digital renewal is unsuccessful, it becomes inactive in the Saudi system.
Is there a renewal premium for Health Insurance?
Yes. Having to renew one’s residency, active health insurance needs to be associated with official systems.
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