let's do it the right way

Shoura to discuss Cut on Iqama Fees
Thursday, 10 January 2008
Saudi Gazette

RIYADH - The Financial Affairs Committee of the Shoura Council is discussing a proposal to cut recruitment and residence permit fees for foreign labor, reported the Arabic language daily Al-Madina, Wednesday.

The proposal was tabled for discussion by Shoura Council members Dr. Abdullah Barjas Al-Dosari and Engineer Mohammad Al-Quwaihes.
As per this recommendation, individuals who recruit a foreign worker would be charged SR500 for the first visa, SR1,000 for the second, SR2,000 for the third and SR3,000 for the fourth and subsequent ones.

However, the recruitment fee for establishments would remain the same.

The fee applies to recruitment of domestic labor, drivers, shepherds and farmers.

Fees for issue of residence permits (Iqama) would be SR100. SR300 will be charged for second renewal, SR500 for the third and SR700 for the fourth and subsequent renewals. Right now the Iqama issuance fee is SR1,000 for one year, and SR2,000 for two years.

The proposal also recommends the establishment of companies for recruitment from abroad and training of domestic labor. The companies would be responsible for providing housing and transportation to workers and for loaning them to Saudi families.

The proposal noted the importance of launching awareness programs to cut down on foreign recruitment and minimize reliance on foreign domestic labor.

According to Al-Dosari and Al-Quwaihes, the old fee did not curb foreign recruitment. Data released by the Ministry of Labor shows that issuance of foreign recruitment visas has gone up by 100%.

Moreover, large numbers of workers run away from their sponsors to work for others for higher wages, not to mention the black market for employment of runaway workers, particularly those of drivers and maids.

Al-Dosari and Al-Quwaihes also indicated that despite the fact that many families do not require full-time house help, there is no system for loaning domestic workers or engaging their services on a part-time basis.

Another factor which prompted the submission of the new proposal was the fact that the fee of recruiting a single worker and that of recruiting dozens is the same.

The proposal also pointed out the high cost of the current visa fees which burdened many citizens, and the absence of proper public and school transportation, forcing families to rely on foreign drivers.