Transferring Employee Sponsorship Between Companies in Saudi Arabia

Hiring a foreign employee who already resides in Saudi Arabia under a different employer is often faster than sponsoring a new hire from abroad — but the sponsorship transfer process (Naqel Kafala) has its own rules.

Red Dragon Office

In this article
  1. What sponsorship (Kafala) actually means here
  2. The transfer process step by step
  3. Consent requirements from the current employer
  4. Where reforms have made this easier
  5. Timing considerations before making an offer
  6. FAQs

What sponsorship (Kafala) actually means here

Kafala refers to the employer-sponsorship system linking a foreign worker's legal residency (Iqama) status to their sponsoring employer. Historically this created significant friction when workers wanted to change employers, since sponsorship could not move without the current employer's consent in most cases.

The transfer process step by step

A sponsorship transfer generally involves: an offer from the new employer, initiation of the transfer request through the Ministry of Human Resources and Social Development (HRSD) portal (Qiwa), confirmation from the current employer (or, under reformed rules, automatic processing once contract conditions are met), and issuance of a new work permit and updated Iqama reflecting the new sponsor.

Consent requirements from the current employer

Recent labor reforms have significantly changed this landscape. Under current rules, many employees can transfer sponsorship without their current employer's explicit consent once their contract has ended or under specific conditions defined by HRSD, a substantial shift from the fully consent-based system of prior years. That said, contract terms, notice periods, and any signed non-compete provisions still matter and should be reviewed before making an offer.

Always ask a candidate directly about their current contract status and any notice period obligations before extending an offer. A candidate who leaves a prior employer improperly can create complications for both themselves and your company during the transfer process.

Where reforms have made this easier

The Labor Reform Initiative has expanded the categories of workers who can change employers without requiring their current sponsor's approval, particularly at contract end or renewal points, which has made the local talent market considerably more liquid than it was previously — a meaningful advantage for foreign companies trying to hire experienced, market-ready staff quickly.

Timing considerations before making an offer

Sponsorship transfers, even under reformed rules, still take processing time through government portals. Building this lead time into your hiring plan — rather than expecting a new hire to start the following week — avoids unnecessary pressure on both the candidate and your operations timeline.

FAQs

Can we sponsor an employee's transfer while they are still under contract with another employer?
Generally this depends on contract terms and specific HRSD conditions; transfers are smoother once a contract has formally ended or renewal conditions apply.
Does the employee need to leave Saudi Arabia during the transfer process?
No — sponsorship transfer is generally processed while the employee remains in the country, unlike a fresh visa application from abroad.

Hiring locally based talent and need help with the sponsorship transfer process? Message us on WhatsApp.