Saudi Arabia
JordanThe Premium Residency in Saudi Arabia: A Comprehensive Legal Guide for Investors, Professionals, and Individuals under Saudi Law
Saudi Arabia, as part of its ambitious Vision 2030, has launched a set of legislative and regulatory initiatives aimed at attracting foreign investment and diversifying the national income away from traditional oil dependence. One of the most significant of these initiatives is the Premium Residency System, which represents a paradigm shift in regulatory policies governing non-Saudi residency in the Kingdom.
The Premium Residency is a tool for empowering investment and attracting top global talent and professionals. It offers significant legal exemptions and privileges that allow investors, entrepreneurs, and academics to operate in Saudi Arabia with independence and flexibility, while ensuring a secure legal environment aligned with international best practices in attracting human and financial capital.
Since this residency falls under modern investment legislation, every investor or professional seeking to benefit from it must understand its legal and regulatory framework to ensure full compliance and avoid issues that may affect their rights or legal status in the Kingdom.
1. Legal Definition of Premium Residency
What is Premium Residency according to Saudi regulations?
As defined by the Premium Residency Center—the official entity managing this system—Premium Residency is a legal permit granted to foreign nationals residing or wishing to reside in Saudi Arabia, under specific conditions. It provides a package of legal, economic, and social benefits not available to holders of regular residency permits.
This system is a departure from the traditional sponsorship (kafala) system. Key freedoms granted include:
- Ownership of residential properties.
- Conducting commercial and investment activities.
- Free movement in and out of the Kingdom without additional exit/re-entry permits.
- Sponsoring and supporting family members.
- Employment rights for spouse and children in the private sector.
- Exemption from certain fees imposed on expats and their dependents.
Though Premium Residency does not confer Saudi citizenship, it does offer a stable and legally protected long-term environment for business and residency—supporting a flexible, globally open labor market.
2. Legal Foundation of the Premium Residency System
Legal Framework:
The system is established under:
- Royal Decree No. (M/106), dated 10/09/1440 AH, officially published in the Umm Al-Qura Gazette.
- Managed by an independent government entity: the Premium Residency Center.
Regulatory Authority: Premium Residency Center
Responsibilities include:
- Assessing applicants’ eligibility.
- Issuing and renewing Premium Residency cards.
- Ensuring ongoing compliance.
- Coordinating with other authorities (Interior, Investment, Commerce, HR, Central Bank).
Link to Other Saudi Legal Systems:
Despite being independent, the Premium Residency is intertwined with several national laws:
- Foreign Investment Law – governs economic activity by foreign residents.
- Companies Law – regulates the business establishment process.
- Labor Law – allows family members to work without sponsorship.
- Real Estate Ownership by Foreigners – grants property rights under regulated conditions.
Legal Protections Include:
- Rights to engage in business and investment.
- Protection of civil and financial rights.
- Access to public services (education, health) similar to citizens.
- Free travel without administrative restrictions.
3. Categories of Premium Residency
Main Categories:
1. Permanent Premium Residency
- No expiry; one-time fee of SAR 800,000.
- No renewal needed.
2. Annual Renewable Premium Residency
- Valid for 1 year, renewable.
- Annual fee of SAR 100,000.
- Flexible trial for investors.
Both offer access to commercial, residential, and investment rights.
4. Specialized Premium Residency Products
To accommodate more professionals and investors, the following specialized categories exist:
1. Exceptional Competence Residency
- For: Healthcare professionals, scientists, executives.
- Requirements:
- Recognized qualifications.
- Priority job offers.
- Salary thresholds.
- Points evaluation.
- Official recommendations.
- Benefits:
- Nitaqat (Saudization) exemption.
- Path to permanent residency.
2. Talent Residency
- For: Award-winning or government-nominated creatives.
- Requirements:
- Professional portfolio and CV.
- Recommendation letters.
- Financial solvency.
- Benefits:
- Leads to permanent residency.
- Nitaqat exemption.
3. Business Investor Residency
- For: Founders of new or existing companies.
- Requirements:
- Minimum SAR 7 million in ownership.
- Valid investment license.
- Job creation (10+ jobs in 2 years).
- Benefits:
- Direct path to permanent residency.
4. Entrepreneur Residency
- For: Start-up founders.
- Track 1 Requirements:
- Entrepreneur license.
- Minimum SAR 400K funding.
- 20% ownership.
- Track 2 Requirements:
- SAR 15 million funding.
- 10% ownership.
- Job creation within 2 years.
- Benefits:
- 3-year Nitaqat exemption.
- Immediate permanent residency (Track 2).
5. Real Estate Owner Residency
- For: Residential property owners.
- Requirements:
- Property worth ≥ SAR 4 million.
- Officially registered residential property.
- Benefits:
- Residency valid while property is owned.
5. Legal Privileges of Premium Residency Holders
- Right to own residential property.
- Engage in commercial activity.
- Work in private sector with employer flexibility.
- Exemption from expat and dependent fees.
- Family sponsorship and extended benefits.
- Entry/exit without visas.
- Use citizen-only lanes at borders.
- Issue visit visas for relatives.
- Exemption from Nitaqat in specific cases.
6. Legal Requirements for Application
Eligibility depends on several legal criteria:
- Age ≥ 21 years.
- Valid passport.
- Clean criminal record.
- Health report (no infectious diseases).
- Proof of financial solvency (e.g., bank statements, employment contracts, asset ownership).
Specific requirements vary by residency type.
7. Application Procedure
Steps via the Premium Residency Center portal:
- Create an online account.
- Fill out the application form and choose residency type.
- Upload required documents.
- Pay fees electronically.
- Application reviewed; additional data may be requested.
- Card issued upon approval.
8. Regulatory Support and Compliance Benefits
Premium Residency helps by:
- Reducing administrative burden for hiring expats.
- Facilitating mobility of foreign talent.
- Easing Saudization constraints.
- Flexible issuance of family and domestic worker visas.
9. Legal and Advisory Challenges
Applicants may face:
- Errors in document submission.
- Difficulty proving legal financial sources.
- Complex eligibility evaluations.
- Need for investment contracts aligned with Ministry of Investment rules.
Legal consultation is strongly advised to avoid rejection or delays.
10. Integration with Saudi Legal Systems
Premium Residency interfaces with:
- Labor Law.
- Companies Law.
- Foreign Investment Law.
- Real Estate Law.
- E-Government Regulations.
This legal integration ensures robust protection for residency holders under Saudi law.
Conclusion
The Premium Residency system stands today as a modern legal tool for enhancing the investment climate and attracting global talent to the Saudi market. With clear legal guarantees, it fosters economic stability and provides comprehensive legal protection for all stakeholders.
Our Services at Al Madani & Co. in Premium Residency
At Al Madani & Co., we offer a full suite of legal services related to Premium Residency, including:
- Eligibility analysis and advisory.
- Document preparation and compliance review.
- Drafting compliant commercial contracts.
- Legal support throughout the application and review process.
- Representation before authorities in case of queries or objections.
With deep expertise and precise legal knowledge, we ensure our clients receive safe and effective solutions to fully benefit from this innovative residency framework in modern Saudi Arabia.
Contact US
Your Trusted Partner
Info@almadanilaw.com
