The iqama transfer process is one of the most practically important — and frequently misunderstood — aspects of managing an expatriate workforce in Saudi Arabia. Whether you are hiring a worker from another company, transferring workers between your own entities, or working with a manpower agency to change sponsorship, understanding the rules protects your business and your workers. This guide explains the process clearly.
What Is an Iqama Transfer?
An iqama transfer (نقل الكفالة — naqal al-kafala, also called 'transfer of sponsorship') is the formal process of moving an expatriate worker's legal sponsorship from one Saudi employer to another through the MHRSD system. After a transfer is complete, the new employer becomes the worker's official sponsor, takes on all associated obligations and can legally employ the worker in their business.
Iqama transfers became significantly easier for workers after the 2021 Labour Reform Initiative, which gave expatriate workers greater mobility. Workers in the private sector can now initiate a transfer after completing one year with their sponsor (with some exceptions). Employers can also request transfers for operational reasons.
This directly affects how manpower outsourcing arrangements work — when a company wants to permanently employ a worker they have been receiving on an outsourced basis, an iqama transfer from the agency's sponsorship to the company's sponsorship is typically required.
Types of Iqama Transfers in Saudi Arabia
Worker-initiated transfer. After completing one year with their sponsor, private sector workers can apply for a transfer through the Absher or Qiwa platforms without requiring employer consent — provided they have not violated their contract. This does not apply to domestic workers, new entrants or workers on specific visa categories.
Employer-to-employer transfer. When a company agrees to hire a worker from another company, both parties submit the transfer request through Qiwa. The current sponsor must not have an outstanding compliance violation (yellow or red Nitaqat status) for the transfer to proceed.
Agency-to-employer transfer. This is the most relevant type for companies using outsourced manpower. When a client company decides to permanently employ a worker they have been receiving on an outsourced basis, the manpower agency initiates a transfer of sponsorship to the client company. Manpower Company Saudia handles this process for clients who wish to convert outsourced workers to direct hires.
Domestic worker transfers. Housemaids, drivers, nannies and cooks are governed by Musaned rather than Qiwa, but the sponsorship transfer principle is the same.
Conditions for a Successful Iqama Transfer
Several conditions must be met for an iqama transfer to be approved by MHRSD:
Valid iqama. The worker's iqama must be valid and not expired. Transfers cannot be processed on expired iqamas — a renewal must happen first.
Nitaqat compliance of the receiving employer. The company receiving the worker must be in Green or Platinum Nitaqat status. Companies in Yellow or Red status cannot receive transfers. This is why maintaining good Nitaqat standing directly affects your ability to hire.
No outstanding violations. Neither the current sponsor nor the receiving company should have active MHRSD violations on their record.
Sector and job category match. For skilled workers — including electricians, plumbers, civil workers and steel fixers — the worker's iqama job category must match or be compatible with the role they will perform at the new employer.
Worker consent (for worker-initiated transfers). The worker must initiate or consent to the transfer through Absher or Qiwa.
How Long Does an Iqama Transfer Take?
When all conditions are met and documentation is complete, iqama transfers through Qiwa are typically processed within 5–10 business days. Domestic worker transfers through Musaned may take 10–15 business days.
Delays occur most commonly because of: expired iqamas requiring renewal first; Nitaqat status issues with the receiving company; outstanding MHRSD violations; or mismatched job categories requiring correction before the transfer can proceed.
Manpower Company Saudia's compliance team pre-checks all these conditions before initiating a transfer, significantly reducing the risk of rejection or delay. For companies managing permanent staffing arrangements where direct hire is the goal, this pre-check process is included in our service.
Iqama Transfer vs. Ajir System — What Is the Difference?
This distinction confuses many Saudi employers:
The Ajir system governs the outsourcing of workers — where the worker remains on the agency's iqama but performs work for a client company. The worker's formal sponsor does not change.
An iqama transfer changes the formal sponsor. After a transfer, the worker is no longer associated with the original agency or employer on the MHRSD system — they are now fully under the new employer's sponsorship with all associated obligations.
Many companies use the Ajir system for temporary manpower arrangements and then initiate an iqama transfer when they want to convert a worker to a permanent direct hire. This hybrid approach is legal and common in Saudi Arabia's construction, industrial and hospitality sectors.
Iqama Transfers Across Saudi Arabia — City-Specific Notes
Riyadh has the highest volume of iqama transfers in the Kingdom, particularly in the construction and FM sectors where project completion triggers frequent worker transfers. Jeddah sees high transfer volumes in hospitality and logistics. Dammam and Jubail have significant transfer activity in the oil and gas and manufacturing sectors.
MHRSD processing times are generally consistent across the Kingdom, though Riyadh-based applications benefit from proximity to the central MHRSD offices for any edge cases requiring in-person resolution.