The Saudi labor market has undergone a historic transformation. With the effective abolition of the traditional “Kafala” system in favor of the Labor Relation Initiative (LRI), the process of sponsor transfer in Saudi Arabia has become more transparent, digital, and employee-centric. In 2026, understanding the nuances of the saudi sponsorship transfer is not just a logistical necessity—it is a strategic requirement for business continuity and talent retention.
At Connect Resources, we facilitate seamless transitions for both organizations and international talent. This guide provides the most up-to-date breakdown of the iqama transfer procedure, associated costs, and compliance benchmarks for the current year.
1. What is Sponsor Transfer in Saudi Arabia? (The 2026 Definition)
In the current regulatory framework, sponsor transfer in Saudi Arabia refers to the legal process of moving an expatriate’s employment and residency sponsorship from one entity to another via the Qiwa and Absher platforms.
The 2026 model emphasizes “Contractual Mobility.” This means that while a “sponsor” (employer) still exists for residency purposes, the relationship is governed by a digital contract. Transferring sponsorship—often referred to as Nakal Kafala—is now a streamlined electronic workflow that reduces the dependency on a previous employer’s “no-objection” in many specific scenarios.
2. The Step-by-Step Iqama Transfer Procedure
The iqama transfer procedure has been fully digitized to eliminate paperwork and reduce processing times. Here is the professional roadmap for 2026:
Step 1: The New Job Offer (Qiwa)
The process begins when the new employer creates a digital job offer on the Qiwa platform. The employee must log in to their personal Qiwa account to review and formally accept the offer.
Step 2: Notice Period and Approvals
Once the employee accepts, the system notifies the current employer.
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With Consent: If the current employer approves, the transfer can proceed immediately.
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Without Consent: Under the new rules, if the employee has completed their contract or if the employer has violated labor terms (like non-payment of salary for 3 months), the transfer can bypass the current employer’s approval after the mandatory notice period (usually 90 days).
Step 3: MHRSD Final Review
The Ministry of Human Resources and Social Development (MHRSD) reviews the request to ensure both the new employer and the employee meet the eligibility criteria (Nitaqat status, valid insurance, etc.).
Step 4: Payment and Stamping
After MHRSD approval, the iqama transfer fee must be paid. Once settled, the new employer completes the process on Absher Business or Muqeem, and the new Iqama digital record is updated instantly.
3. Understanding the Iqama Transfer Fee in 2026
The iqama transfer fee is a statutory cost that, by law, must be borne by the new employer. The fee structure is cumulative, designed to encourage long-term employment stability.
| Transfer Occasion | Fee Amount (SAR) |
| First Transfer | SAR 2,000 |
| Second Transfer | SAR 4,000 |
| Third & Subsequent Transfers | SAR 6,000 |
Note: These fees are paid via the SADAD payment system through online banking or the Absher portal. It is a violation of Saudi Labor Law to deduct these fees from the employee’s salary.
4. How to Check Iqama Transfer Status (Nakal Kafala Check)
Transparency is a hallmark of the 2026 system. Both employers and employees can perform a nakal kafala check to monitor the progress of their application.
Via Qiwa (For detailed stage tracking):
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Log in to your Qiwa Individual account.
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Navigate to “Services” and select “Employee Transfer.”
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View the iqama transfer status (e.g., “Awaiting Employee Action,” “Pending Current Employer Approval,” or “Completed”).
Via MHRSD Portal (For quick verification):
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Visit the official MHRSD website.
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Enter the Iqama number and the date of birth.
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The system will display the current status of the “Expatriate Worker Service” request.
Via Absher (For final confirmation):
Once the transfer is complete, the employee can check their “Digital ID” in Absher. If the “Sponsor Name” reflects the new company, the saudi sponsorship transfer is officially finished.
5. When Can You Transfer Without Employer Consent?
One of the most frequent questions we receive at Connect Resources is regarding the “Automatic Transfer.” In 2026, an employee can initiate a sponsor transfer in Saudi Arabia without the current sponsor’s approval if:
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The employer fails to pay wages for three consecutive months.
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The employer fails to renew the employee’s Iqama or Work Permit within 90 days of expiration.
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The employer is “absent” (Red Nitaqat status or the company has closed).
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A labor dispute exists, and the employer fails to attend two court sessions.
6. Common Roadblocks and Compliance Risks
Even with a digital system, the iqama transfer procedure can be delayed by:
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Expired Establishment Records: If the new employer’s Commercial Registration (CR) or Municipality license is expired.
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WPS Non-Compliance: If the new employer is not up-to-date with the Wage Protection System.
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Unpaid Traffic Violations: The employee must clear all personal fines before a transfer can be finalized in the Ministry of Interior’s systems.
7. How Connect Resources Facilitates Your Sponsorship Needs
Navigating the saudi sponsorship transfer requires more than just technical access to Qiwa; it requires a deep understanding of Saudi Labor Law and Nitaqat quotas.
At Connect Resources, we provide:
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EOR/PEO Services: We act as your legal employer, managing all iqama transfer status monitoring and fee payments.
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PRO Services: Our experts handle the “human” element of government relations, resolving blocks at the Ministry level.
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Audit and Compliance: We ensure your company remains in the “Green” or “Platinum” zones, making you an eligible sponsor for top talent.
8. Conclusion: The Strategic Advantage of Mobility
In 2026, the ease of sponsor transfer in Saudi Arabia is a competitive advantage. Companies that master the iqama transfer procedure can attract the best talent already residing in the Kingdom, significantly reducing recruitment costs and onboarding times.
By leveraging the digital tools of the MHRSD and partnering with a compliance expert like Connect Resources, your organization can navigate the complexities of nakal kafala with total confidence.
Need Assistance with Your Sponsorship Transfers?
Don’t let technical errors or compliance hurdles delay your growth. Connect Resources is the leading expert in Saudi immigration and labor law. Contact us today to handle your iqama transfer fee management and total sponsorship logistics.
FAQ: Sponsor Transfer in KSA
Q1: Can I check my nakal kafala check status without an Absher account?
While you can use the MHRSD query tool with just your Iqama number, having an Absher or Qiwa account is essential for a detailed and secure iqama transfer status update.
Q2: Is the notice period mandatory for all transfers?
If the contract is active and there are no violations, the 90-day notice period is typically mandatory unless the current employer waives it through Qiwa.
Q3: Does the iqama transfer fee change if my profession changes?
No, the transfer fee is based on the number of times you have changed sponsors, not your job title. However, a separate “Profession Change” fee of SAR 1,000 may apply if your new role requires a different classification.
