Service Companion Private Limited

Recruitment Agencies in Saudi Arabia: What a Licensed Recruiter Does, and How to Choose One

18 min readLast updated

What the Labour Law requires of a recruitment agency in Saudi Arabia, the chain from visa to iqama, which hires count for Nitaqat, who pays which fees, and eight questions that separate one agency from another.

A recruitment agency in Saudi Arabia sources, screens and processes candidates for an employer, and the employer hires them. The Labour Law says so directly: under Article 31, workers an agency recruits on an employer's behalf are that employer's workers, on a direct contract. Recruiting is itself licensed — Article 30 bars anyone from practising recruitment, the employment of Saudis or outsourcing without a licence from the Ministry of Human Resources and Social Development (MHRSD). The hire then runs on national platforms: the visa, the employment contract and the work permit on Qiwa, the iqama through Absher, and registration at GOSI. Before any of that, the employer's own Nitaqat band decides whether a visa can be requested at all.

This page sets out how that chain runs, who pays for it, and the questions that separate one agency from another.

It does not give you a time-to-hire, a placement rate or a cost per hire. No official source publishes any of them for Saudi Arabia, and this page does not invent them. What decides how long a hire takes is mostly your own establishment file and the profession code, and both can be checked before anyone is sourced.

Key Takeaways

  • A recruiter finds the person; you employ them. Under Article 31 a recruited worker is yours, on a direct contract — your sponsorship, your GOSI registration, your Nitaqat count. A person who stays on a provider's establishment and works under your direction is a different arrangement, labour outsourcing, regulated by Resolution 60339 and documented through Ajeer.
  • Recruitment needs an MHRSD licence, and recruiting workers and employing Saudis are separate licensed activities. Practising either without a licence carries a fine of SAR 200,000 to SAR 500,000 under Article 229 bis.
  • Your establishment is checked before your candidate. Qiwa issues permanent work visas and accepts transfers in only at Medium Green or above, with wage protection clean and every work permit in the group valid.
  • The profession code is the hire. The visa, the work permit and the work done must match it, and 69 administrative professions are 100% Saudi — nineteen since April, fifty from 4 October 2026, recruitment specialist among them. No agency can fill those from abroad.
  • The employer pays. Article 40 puts the recruitment fees, iqama and work permit fees, exit and re-entry and the return ticket on the employer, and passing them to the worker is fined per worker.

What the law says a recruiter is

Several of the relevant articles were amended by Royal Decree M/44, in force from 20 Sha'ban 1446 (19 February 2025):

Article What it says
30 No natural or legal person may practise the activity of employing Saudis, recruiting workers or outsourcing (الإسناد) without a licence from the Ministry
31 Saudis an office or company helped employ, and workers it recruited on employers' behalf, are the employer's workers, in a direct contractual relationship with the employer
37 A non-Saudi's employment contract must be written and fixed-term. If it states no term, it runs one year from the actual start and renews for the same period if work continues
38 An employer may not employ a worker in a profession other than the one recorded on the work permit
229 bis Practising an Article 30 activity without a licence: a fine of SAR 200,000 to SAR 500,000

MHRSD's schedule of violations, Resolution 112377, carries unlicensed recruitment or outsourcing as row 48, at SAR 200,000 to SAR 250,000 by establishment size, and regulates licensed "human resources and recruitment companies" and "recruitment offices" in separate sections. The labour violations guide transcribes it.

Checking a licence. We found no official public register of business recruitment licences that we could open, so the check is the documents: the MHRSD licence and the activity it covers, the commercial registration and the activity recorded on it, and the MHRSD establishment number. Domestic workers are a different channel altogether, recruited through Musaned, MHRSD's domestic labour platform.


Your establishment is checked before your candidate

A work visa is issued to an establishment against its recruitment quota, not to a role. Among the conditions Qiwa lists before an establishment can request one from abroad: a valid commercial registration, a Nitaqat band of Medium Green or higher, wage protection compliance with no remarks, valid work permits for every employee in the establishment group, available quota, and funds in the Ministry of Interior platforms. A transfer of someone already in the Kingdom draws on the same quota and the same conditions.

MHRSD's 2026 procedural guide for the developed Nitaqat programme sets out what each band may do:

Band New visa requests Transfers in Work permit renewal Profession changes
Platinum, High Green, Medium Green Yes Yes, from any band Yes Yes
Low Green Stopped No — Qiwa's transfer service requires Medium Green Yes Stopped
Red No No No, and no new permits No

An agency that starts sourcing overseas candidates for an establishment in Low Green is sourcing for a visa the establishment cannot request. If the band is the obstacle, the first hires are Saudi ones. Two kinds of establishment are treated differently — entities of five employees or fewer are banded only Green or Red, and establishments in what Qiwa calls the allowance period have quota tiers of their own — so check the conditions on your own Qiwa file. The Nitaqat calculator shows where an establishment sits.


The expatriate hiring chain, step by step

This is the sequence for a non-Saudi hired from outside the Kingdom, as Qiwa, MHRSD and GOSI describe it:

Step What happens Platform or authority Who acts
Establishment check Band, wage protection, permits across the group, quota Qiwa You, or your authorised agent
Profession code The role matched to the occupation it will be registered under, checked against the localisation lists Qiwa You, with the recruiter
Visa Issued from the quota; the visa number goes to the agency in the source country Qiwa You, or your authorised agent
Assessment Interviews and trade testing. Depending on the occupation, MHRSD's Professional Accreditation Programme: verification of skills, experience and certificates for high-skilled jobs, or a practical and theoretical examination for medium- and low-skilled ones, before or after entry Source country Recruiter
Contract Prepared online, signed with the candidate through the agency abroad; written and fixed-term Qiwa You; the agency abroad
Attestation and medical Certificates attested in sequence — issuing authority, origin country's foreign ministry, Saudi mission, Saudi Ministry of Foreign Affairs — and the medical at an approved centre Source country Recruiter
Stamping and travel Visa stamped by the Saudi mission; travel Source country Recruiter and candidate
Work permit Within the first 90 days after entry, for 3, 6, 9 or 12 months; not issued in the red band Qiwa You
Medical insurance Bought after the work permit; needed before the iqama Insurer You
Iqama Issued online by the employer Absher You
GOSI Registered within the first fifteen days of the month after joining GOSI You

Two rows decide whether the money spent becomes an employee. The profession code has to hold throughout: Article 38 forbids work outside the profession on the permit, and the violations schedule fines it per worker. And the work permit and iqama are on the employer's clock: Qiwa states that if either is not issued, the employee can move to a new employer immediately, without obligations.

Hiring someone already in the Kingdom runs through Qiwa's employee transfer service instead. The candidate must be working in Saudi Arabia, not in another transfer, and not holding a final exit visa or final exit work permit. Once the employee approves the request, the new employer has 14 days to act on Absher or Muqeem, or the contract expires and is cancelled.


Saudi hires, Nitaqat and the roles no agency can fill from abroad

A Saudi hire has no visa stage. The contract is created on Qiwa and sent to the candidate's own account; the candidate has ten days to approve it before it cancels. Once approved and authenticated, it turns active on the start date and the employee is registered with GOSI automatically. Whether the hire moves your band depends on what Qiwa publishes:

Condition Rule
Contract Since 15 April 2026, Nitaqat is calculated on contracts authenticated on Qiwa. An unauthenticated contract does not count
Registered monthly salary Under SAR 3,000: not counted. SAR 3,000 to 3,999: half an employee. SAR 4,000 and above: one employee
Other cases A part-time Saudi counts as half. A Saudi registered at more than one establishment counts only at the oldest

The band moves on a calendar too. Qiwa calculates it either on a 26-week average or, once an establishment has held Low Green or better for 13 consecutive weeks, on a single week — so a hire does not necessarily show in the band the week it is made. The Nitaqat categories guide covers the bands.

Some roles cannot be filled from abroad at all. Ministerial Decision 132249 placed 69 administrative support professions at 100% Saudization, for any private establishment with one worker or more in a listed profession. Nineteen applied from 5 April 2026 and fifty apply from 4 October 2026. Several sit squarely in Eastern Province hiring:

100% Saudi since 5 April 2026 100% Saudi from 4 October 2026
Storekeeper (432101), customs clearance agent (333103), hotel receptionist (422401), data entry operator (413201), secretary (412002), human resources clerk (441601) Shipping clerk (432102), stock movement clerk (432103), freight forwarding agent (333101), customs agent (333102), receptionist (422601), administrative assistant (412001), government relations clerk (411001)

The list reaches recruitment itself: recruitment specialist (242311), employment specialist (242304), recruitment office manager (121209) and employment manager (121204) are among the October fifty, binding in-house recruitment teams and agencies' own staff alike. The ministry's guide penalises assigning a localised profession's tasks to a non-Saudi "directly or indirectly" under another title, and nothing published says moving the work to an outside provider discharges the obligation. The full list is in the October 2026 Saudization deadline guide.


Who pays what

Article 40 of the Labour Law, as amended in 2025, allocates the costs of an expatriate hire:

Cost Who bears it
Recruitment fees for the non-Saudi worker Employer
Iqama and work permit fees, renewals, and fines for delays the employer caused Employer
Change of profession, exit and re-entry Employer
The return ticket home after the relationship ends Employer
Return home where the worker is unfit for work or leaves without a legitimate reason Worker
Transfer of a worker's services The employer receiving the worker

Row 32 of the violations schedule enforces it: an employer failing to bear these costs, or charging them to workers, commits a serious violation fined SAR 1,000 to SAR 3,000 by establishment size, per worker. An arrangement that shifts them onto candidates creates compliance exposure for the employer, which is why the question belongs in the agreement with any agency.

The law does not set the agency's own fee to the employer; that is commercial. Ask what it includes — attestation, the medical, travel, arrival processing — and what the candidate will be asked to pay in the source country.


How to choose a recruitment agency in Saudi Arabia: eight questions

A large candidate database, fast turnaround and sector expertise are claims, not criteria; none can be checked from a proposal. These are the questions whose answers differ.

  1. Whose establishment will the person be on, from the first day? In recruitment, yours. If they are to stay on the provider's file and work under your direction, the arrangement is labour outsourcing rather than recruitment, which is regulated and documented differently (see the next section).
  2. Which MHRSD licence do you hold, and for which activities? Article 30 licenses recruiting workers, employing Saudis and outsourcing as separate activities, so check the licence covers the hires you are asking for — Saudi nationals as well as recruitment from abroad, if you need both. Ask to see the licence, the CR and the MHRSD establishment number.
  3. Will you check our establishment before you source? Band, wage protection, permits, quota. An agency that starts with CVs before it has seen your band may be sourcing for a visa you cannot request.
  4. Which profession code will each role be hired under, and is it on a localisation list? If it is a 100% Saudi profession, the honest answer is that there is no overseas route. A proposal to hire against a different title is the "directly or indirectly" clause in action.
  5. What is verified before the offer? For technical roles, a trade test that reproduces what your site specifies, not the job title, and certificates verified and attested before mobilisation. A candidate who fails your inspector after arrival has to be brought twice.
  6. Who runs the chain after the offer, and where does it hand back to you? One team, or a candidate and a list? Approving the contract, paying the government fees and any site pass issued against your own contract stay yours whatever you buy.
  7. What will the candidate pay, at either end? Get it in writing, including what the agency's partner in the source country charges.
  8. If the hire does not arrive, or does not last, what happens — in writing? Replacement and refund terms are where proposals genuinely differ, and they decide what you are buying. Get them before you compare fees.

Recruitment, service outsourcing and labour outsourcing

Three arrangements answer the request "we need people", and Saudi regulation separates them by licence. Since Ministerial Resolution 60339 took effect on 26 January 2026, choosing the wrong one is the receiving company's exposure as well as the provider's.

Recruitment Service outsourcing (تعهيد الخدمات) Labour outsourcing (تعهيد القوى العاملة)
Who employs the person You, on a direct contract The provider The provider
Who directs the work day to day You The provider, against a defined scope You
What you are buying Finding, assessing and processing the hire The delivery of a defined scope The work of people placed under your direction
What regulates it The Article 30 licence Resolution 60339, service outsourcing Resolution 60339: an MHRSD licence, and an Ajeer contract and permit before work starts, for up to three years or the end of the contract

The test is not the contract's title, and not how a line is priced, whether per person per month or per scope. It is who directs the work day to day. Under labour outsourcing the receiving company must not let work start before the Ajeer permit exists, must keep the person within the permit's profession, and must stop the work when the permit ends. An "Employer of Record", which employs people you choose while you direct them, places them on the provider's establishment — for a Saudi business, that is labour outsourcing too.

The manpower supply guide sets the three side by side for a site requirement, and the Resolution 60339 contract audit checks a contract already signed.


Hiring in the Eastern Province

Dammam, Al Khobar, Dhahran, Jubail, Ras Al Khair and Al Ahsa are one province and several hiring markets. A shortlist built for one is usually wrong for the next.

Where What is hired What changes the brief
Dammam Second Industrial City Mechanical, electrical and instrumentation technicians, welders, fitters, machine operators, QC inspectors Trade testing before the offer
King Abdulaziz Port and the warehousing estate Yard supervision, equipment and forklift operators, customs documentation, HSE 100% Saudi: storekeeper and customs clearance agent since April 2026; shipping clerk, stock movement clerk, freight forwarding agent and customs agent from 4 October 2026
Al Khobar Hotel, food service and retail roles; back offices for work sited in Jubail or Ras Al Khair Split shifts and the Thursday-to-Saturday evening peak; Arabic and English in service. Hotel receptionist is 100% Saudi
Dhahran Corporate and contractor-side roles The employer's own client often vets people before they badge onto a site, so certificates are verified before the offer
Jubail Industrial City Process operators, technicians, coded welders, NDT, rigging, HSE and permit roles Under the Royal Commission, a person starts when site access clears; turnaround windows fix demand in advance
Ras Al Khair Minerals processing, smelting, bulk handling, marine fabrication Largely rotational; the rotation is accepted at interview or the hire does not last
Al Ahsa Candidates for employers across the province One of the province's largest population centres, and a source of Saudi candidates

A welder in Jubail is qualified to a procedure, a position and a parent material, not to the word "welder", so a test that does not reproduce the plant's specification proves nothing at the gate — and the gate pass is issued against the employer's contract with the plant, so that step stays the employer's. For Saudi hiring, the province has its own graduates from Imam Abdulrahman Bin Faisal University and King Fahd University of Petroleum and Minerals, and technicians from Jubail Industrial College and Jubail Technical Institute. Overseas hires arrive through King Fahd International Airport, and chamber attestation goes through the Asharqia Chamber in Dammam.


What actually happens between brief and first day

The first conversation is a classification, not a briefing. For each role: the profession code; whether it is open to non-Saudis; whether the person will be a Saudi national, a transfer or an overseas hire; and where they will work, because a Jubail plot or a Dhahran contractor site adds an access chain to the government one. The establishment check runs alongside.

That split decides the rest. A Saudi hire is sourcing, a salary at the level where the hire counts, and a contract approved on Qiwa within ten days. A transfer skips the overseas chain, which is why sourcing starts inside the Kingdom. An overseas hire runs the whole table above.

No official source publishes how long that takes, and the variables are on the file: whether the quota matches the profession code, whether certificates were attested in the right order and country, whether the medical was done at an approved centre, whether the passport name matches the qualification. Any one sends a completed step back to the start, so a date given before they are checked is a guess. After arrival, the permit, insurance, iqama and GOSI clocks are yours.


How SCPL recruits

SCPL is a licensed recruitment company, and its MHRSD licence covers both recruiting workers from abroad and employing Saudis. It recruits from its head office in Dammam and its office in Riyadh for companies that employ the people it finds directly, on their own contracts:

  • Local recruitment first, including transfer candidates whose sponsorship moves to you, and Saudi national recruitment planned against your Nitaqat band.
  • International sourcing from established source markets, with attestation run in sequence in the source country, quota conversion, stamping coordination, travel and arrival processing.
  • Trades, technicians, engineers and supervisors for operating environments, with trade roles tested before an offer — in the source country for overseas candidates — and certificates verified before mobilisation.
  • Fixed-term and project-based hiring, with the contract drafted to Saudi labour law and you as the employer for the term.

The visa, iqama, Qiwa authentication, GOSI and insurance steps after a hire are run by SCPL's government relations team as one sequence. Eastern Province candidates can be interviewed and trade tested in person, at the Dammam office or on your own site.

SCPL does not act as an Employer of Record and does not recruit domestic workers. Recruitment starts once the establishment exists; if yours does not yet, SCPL's business setup service takes it from the licence to the first hire. And SCPL does not give a start date before it has seen your file.

Ask for a written scope — send the roles, the number of each, where the people will work, whether they are to be Saudi nationals, transfers or overseas hires, and whether visas are already approved, and you will get back the structure that fits it — hires on your own contract, or a defined scope delivered by SCPL's own team — with the profession and quota position for each role, and a date built from your file.

If you are looking for work rather than hiring, register as a candidate. SCPL never charges a candidate a fee.


FAQ

Do we have to use a recruitment agency to hire in Saudi Arabia?

Not to hire directly. Qiwa's steps for hiring a Saudi or transferring a non-Saudi already in the Kingdom are the employer's own, though its guidance for visas from abroad assumes an agency in the source country. What the law licenses is the third party: under Article 30, anyone practising recruitment as an activity needs an MHRSD licence.

Who pays recruitment fees in Saudi Arabia?

The employer. Article 40 of the Labour Law puts the recruitment fees for a non-Saudi worker, the iqama and work permit fees, exit and re-entry and the return ticket on the employer, and charging them to the worker is fined per worker. The agency's own fee to the employer is a commercial term the law does not set.

Can a recruitment agency employ the person for us on its own sponsorship?

Not as recruitment. Article 31 makes a recruited worker the employer's, on a direct contract. Someone on another establishment's file working under your direction is labour outsourcing, which under Resolution 60339 runs on an MHRSD licence and an Ajeer contract and permit. A defined scope delivered by a provider's own supervised team is service outsourcing, a third arrangement.

Can an agency fill a 100% Saudized role with an overseas hire?

No. Decision 132249 placed 69 administrative support professions at 100% Saudization, fifty of them from 4 October 2026, and those roles have no overseas route. Retitling does not help: the procedural guide penalises assigning the tasks to a non-Saudi "directly or indirectly".

Does a Saudi hired through an agency count towards our Nitaqat band?

Yes, because they are your employee — provided the contract is authenticated on Qiwa, required since 15 April 2026, and the registered salary is high enough. Qiwa counts a Saudi at SAR 4,000 a month or more as one employee, at SAR 3,000 to 3,999 as half, and below SAR 3,000 not at all.

How long does it take to hire from abroad?

No official source publishes a figure. The variables are on your file — quota and profession code, attestation sequence, medical centre, the names on the documents — so a number quoted before the file has been seen is a guess.

I am looking for a job in Saudi Arabia. Can I apply through this page?

This page is for employers. SCPL recruits against its clients' requisitions; to be considered when a role opens, register as a candidate. SCPL never charges a candidate a fee.


Official sources

Verify current requirements directly with the authorities — rules and fees in this area change, and the official portal is always ahead of any guide, including this one.