Cost Breakdown: How Much Does It Cost and How to Get Iqama in Saudi Arabia?

If you’re an expatriate planning to work or do business in Saudi Arabia, one of the most important things you need to secure is the Iqama—the residency permit that allows you to stay legally in the Kingdom. The Iqama is your identity document in Saudi Arabia, required for almost everything: opening a bank account, accessing medical services, enrolling children in school, or even buying a SIM card.

But here’s the real question most people have: how much does it cost to get an Iqama in Saudi Arabia? And what steps do you need to follow to get one successfully?

In this guide, we’ll break down the total cost of obtaining an Iqama, including government fees, medical test charges, insurance, and dependent levies. Plus, we’ll walk you through the complete process of getting your Iqama without delays. Whether you’re an employee, a freelancer, or an investor, this article will cover everything you need to know.

Why Understanding Iqama Costs Is Important

Before you make the move to Saudi Arabia, understanding the financial side of the Iqama process is crucial. Unlike a simple visa, the Iqama involves multiple fees and ongoing expenses. Missing a payment or misunderstanding the cost structure can lead to fines, penalties, or even cancellation of your residency status.

Additionally, for business owners, it’s not just about your own Iqama; you’ll need to plan for family Iqamas and employees as well. That’s why many entrepreneurs first learn how to get business license in Saudi Arabia, as your commercial license directly impacts your residency and ability to sponsor dependents.

What Makes Up the Iqama Cost?

The cost of an Iqama in Saudi Arabia depends on several factors:

• Government fees for Iqama issuance and renewal
• Health insurance cost
• Medical examination charges
• Work permit fees (for employees)
• Dependent levy (if you’re sponsoring family)

Let’s dive into each of these components in detail.

Government Fees for Iqama

The basic cost for issuing or renewing an Iqama is SAR 650 per year. This is a mandatory government fee, and it applies to all expatriates. Employers generally handle this for their employees, but freelancers and business owners will need to pay it themselves.

Medical Test Charges

Before you get your Iqama, you must undergo a medical examination in Saudi Arabia. This includes tests for communicable diseases such as HIV, hepatitis, and tuberculosis.

The cost of a medical test typically ranges between SAR 200 and SAR 500, depending on the hospital or clinic.

Health Insurance Cost

Health insurance is mandatory for Iqama issuance. The price depends on the coverage plan and the insurance provider.

• Basic coverage: SAR 500 – SAR 1,000 per year
• Comprehensive coverage: SAR 2,000 – SAR 5,000 per year

The better the coverage, the higher the cost. Some employers cover health insurance for employees, but dependents are often the responsibility of the expatriate.

Work Permit Fees

In addition to the Iqama fee, there’s a work permit (Maktab Amal) fee, usually SAR 800 per month, which equals SAR 9,600 annually. This fee is generally paid by the employer, but if you’re self-employed or a freelancer, you’ll need to handle this cost.

Dependent Levy Charges

If you plan to bring your family, you’ll need to pay the dependent levy. This is currently SAR 400 per month per dependent, which equals SAR 4,800 annually per person.

For example, if you have a spouse and two children, you’ll pay:
SAR 4,800 × 3 = SAR 14,400 annually in dependent levies alone.

Total Estimated Cost for a Single Expat

Here’s a rough breakdown for one person:

• Iqama fee: SAR 650
• Health insurance: SAR 1,000 (average)
• Medical test: SAR 300
• Work permit fee: SAR 9,600

Total: SAR 11,550 annually (excluding dependent levy).

If you’re bringing family, add SAR 4,800 per dependent plus their health insurance.

Hidden Costs You Should Know About

• Translation and attestation of documents (marriage and birth certificates): SAR 200–500 per document
• Delayed renewal fines: SAR 500 for the first month, up to SAR 1,000 for further delays
• Visa stamping charges (if applicable): SAR 100–500

Step-by-Step Process: How to Get Iqama in Saudi Arabia

Now that you know the costs, let’s look at the steps involved in securing your Iqama:

Step 1: Enter Saudi Arabia on a Work or Business Visa

You cannot apply for an Iqama directly from outside the Kingdom. First, you need to arrive on a work visa (for employees) or an investor visa (for business owners).

Step 2: Complete Medical Tests

After arrival, you must undergo a medical examination at an authorized medical center. Results are uploaded to the Ministry of Interior’s system automatically.

Step 3: Secure Health Insurance

Health insurance is mandatory for all expatriates. Without an active insurance policy, your Iqama application will be rejected.

Step 4: Pay Iqama Fees and Work Permit Charges

Employers usually handle this for employees, but business owners and freelancers must pay themselves through SADAD or authorized banks.

Step 5: Apply Through Absher

Log in to the Absher platform to complete the application process. Ensure all details match your passport and visa information.

Step 6: Collect Your Iqama

Once approved, you can collect your Iqama card from the Jawazat office or opt for home delivery if available.

How Long Does It Take to Get an Iqama?

Typically, the process takes 1–3 weeks, provided all documents, medical reports, and payments are completed on time.

How Much Does It Cost to Renew an Iqama?

Renewal costs are almost the same as initial issuance:

• Iqama renewal: SAR 650
• Work permit: SAR 9,600 annually
• Health insurance: SAR 1,000–5,000 (depending on coverage)
• Dependent levy: SAR 4,800 per dependent annually

Cost for Business Owners and Investors

If you plan to set up a business, you’ll need to factor in commercial registration fees, office space, and licensing costs in addition to the Iqama fees. That’s why understanding how to get business license in Saudi Arabia is critical before starting the process, as your business license determines your eligibility for an investor Iqama and dependent sponsorship.

Common Mistakes That Increase Costs

• Missing dependent levy payments (penalty applies)
• Delaying renewal of Iqama (fines can reach SAR 1,000)
• Choosing expensive health insurance without comparing options

Tips to Save on Iqama Costs

• Compare health insurance providers for affordable coverage
• Pay dependent levies and renewals on time to avoid penalties
• Use authorized service centers to avoid unnecessary fees

Final Thoughts

Securing an Iqama in Saudi Arabia involves more than just paperwork—it requires careful budgeting and understanding of the associated costs. From government fees and health insurance to dependent levies and medical exams, every component adds up.

If you’re relocating as an entrepreneur, you should first learn how to get business license in Saudi Arabia, because your residency—and your ability to sponsor family members—depends on your business setup.

Now that you know the full cost breakdown and how to get Iqama in Saudi Arabia, you can plan your finances, avoid surprises, and ensure a smooth start to your life in the Kingdom.