Expat Living in Saudi Arabia 2025: Iqama, Dependent Levy, Exit Visas & Cost of Living

Saudi Arabia for Expatriates — The Big Picture

Saudi Arabia is home to approximately 13 million expatriates — nearly 38% of the total population — making it one of the world's largest expat communities. They come from Pakistan, India, Bangladesh, the Philippines, Egypt, Jordan, Yemen, the USA, UK, and dozens of other countries, drawn by tax-free salaries, subsidised energy, and the economic opportunities of the world's largest oil-producing nation.

Life as an expat in Saudi Arabia has changed dramatically over the past decade. Vision 2030 has brought entertainment venues, cinemas, concerts, mixed-gender workplaces, and significantly more social freedom. Understanding the legal, financial, and practical landscape is essential for making the most of your time in the Kingdom.

The Iqama — Your Key to Everything

The Iqama (إقامة) is your residency permit as a non-Saudi living in the Kingdom. Without a valid Iqama, you cannot legally work, rent a property, open a bank account, drive, or access most government services. Getting and keeping your Iqama valid is priority #1 for every expat.

Iqama Fees (2025)

While employers are legally responsible for Iqama renewal fees for their employees, many employment contracts specify that the employee bears this cost. Check your contract carefully.

Iqama Renewal Process

1. Employer (or you, if self-sponsored) initiates renewal via the Absher Business portal
2. Payment of renewal fee + any outstanding fines
3. Updated Iqama issued digitally — accessible via Absher app
4. Physical Iqama card updated at a Jawazat (Passports) office if needed

You can check your Iqama expiry date instantly using our Iqama Expiry Calculator — enter your Iqama number or Hijri expiry date and get the Gregorian equivalent.

The Dependent Levy — Know the Costs

Introduced in 2017 as part of fiscal reform, the dependent levy significantly affects the financial calculations of family expats. A family of four (two working-age expats with two children) where only one works pays:

• Spouse: SAR 400/month
• Child 1: SAR 400/month
• Child 2: SAR 400/month
• Total annual dependent levy: SAR 14,400/year

Dependent Levy Exemptions

Certain categories are exempt from the dependent levy:

• Children of Saudi national mothers married to expatriate fathers
• Dependents of GCC nationals
• Diplomatic personnel
• Some categories of professional license holders (check current HRSD rules)

Cost of Living in Saudi Arabia 2025

Saudi Arabia offers a mixed cost-of-living picture. Some things are very affordable (fuel, utilities, basic groceries); others are expensive (private education, Western restaurants, imported goods).

City-by-City Comparison

Exit Visas — The 2021 Reform

One of the most significant changes for expatriates in recent years was the abolition of the exit visa requirement for most private-sector workers, effective 2021. Previously, expatriates needed employer approval to leave the country on each trip — a major restriction that gave employers considerable control.

Current Exit Rules (2025)

• Most private-sector workers: Can travel freely without employer permission, subject to having a valid Iqama and no travel ban.
• Domestic workers: Still require employer notification in some categories.
• Workers with disputes: Active labour disputes may result in travel restrictions imposed by the courts.
• Contract clauses: Some employment contracts include notice periods or restrictions — these may still apply contractually even if not a government requirement.

Banking in Saudi Arabia as an Expat

Expatriates can open bank accounts with a valid Iqama. Saudi Arabia has a strong, modern banking sector:

Major Banks for Expats

• Al Rajhi Bank: Largest Islamic bank, extensive ATM network, excellent app, available in multiple languages
• Saudi National Bank (SNB): Largest bank by assets, strong corporate and retail banking
• Riyad Bank: Good for international transfers, competitive rates
• Arab National Bank (ANB): Strong expat-focused services
• SABB (Saudi British Bank): HSBC-affiliated, good for expats from UK/Western countries

Remittance — Sending Money Home

Saudi Arabia is the world's second-largest source of remittances. Sending money home is easy with multiple options — banks, exchange houses (Al Mujib, Western Union, MoneyGram), and digital apps (STC Pay, urpay, Wise). Compare rates before each transfer — the difference between providers can be SAR 100–500 on a SAR 5,000 transfer. Use our Remittance Fee Comparator to find the best rate for your destination country.

Healthcare in Saudi Arabia

Medical insurance is mandatory for all expatriates (and their dependents) in Saudi Arabia — employers must provide it. However, the quality varies enormously:

• Basic plans: Cover clinic visits and basic hospitalisation in government-class facilities
• Mid-tier plans: Access to private hospitals like Dr. Sulaiman Al-Habib, Dallah, Saudi German
• Premium plans: Full private hospital access, dental, optical, maternity

Before accepting a job, ask specifically about the medical insurance plan's network and coverage limits. For dependents, check whether dependent insurance is employer-paid or employee-paid — this can add SAR 3,000–15,000/year to your costs.

Essential Apps for Expats in Saudi Arabia

Driving in Saudi Arabia as an Expat

Expatriates can drive in Saudi Arabia on their home country licence for the first few months, after which they must obtain a Saudi driving licence. GCC nationals and holders of licences from certain countries (USA, UK, EU, Canada, Australia) can convert their licence without a driving test. Others must take the test.

Use our Traffic Fine Calculator to check the penalty for any traffic violation in Saudi Arabia — fines can be significant.

Frequently Asked Questions

Related Tools & Guides

• → Iqama Expiry Calculator — check your renewal date
• → Remittance Fee Comparator — best rates to send money home
• → Saudi Traffic Fine Calculator
• → End-of-Service Gratuity Calculator
• → Full Iqama Renewal Guide
• → Best Remittance Services Guide
• → Saudi Salary Components Guide