Iqama (Residency)
Synonyms: Residence Permit، Residency، Premium Residency، Saudi Iqama
Last updated: 2026-05-07
Short Definition
Residency document for foreign residents in Saudi Arabia, replacing national ID in transactions, required for Ejar contract authentication.
Overview
Legal Basis
The Iqama is based on the Residence Law issued by Royal Order No. (17/2/25/1337) of 1371 AH and its executive regulations, and the Foreign Real Estate Ownership and Investment Law issued by Royal Decree No. (M/15) of 1421 AH. The real estate status of residents is also regulated by the Premium Residency Regulation issued in 2021. The Ejar platform requires a valid Iqama number for any contract with a resident party, and verifies validity automatically through integration with Passports.
Practical Example
Mohammed, an Egyptian engineer working at a company in Khobar with a monthly salary of SAR 12,000, is looking for an apartment to rent. He agrees with a real estate agency on an apartment with an annual rent of SAR 30,000. When documenting on Ejar, the agency requests his Iqama number (starting with 2), and verifies its validity (does not expire before the contract end). The system accepts the documentation and issues the contract. Later, if Mohammed wants to own the property, he is only entitled to in specific cases (obtaining Premium Residency, or the property being within special economic cities), otherwise long-term rental is his practical option.
Common Mistakes
- ✗Assuming a resident cannot document a rental contract in his name — this is incorrect; residents have full rental rights.
- ✗Neglecting to verify Iqama validity before documenting the contract — the Ejar platform automatically rejects contracts that extend beyond Iqama expiry.
- ✗Confusing the Iqama number with the passport number — the Iqama number is local Saudi and separate from the passport number.
- ✗Residents believing they can own any Saudi property — ownership is restricted by special regulations and in specific areas.
- ✗Forgetting that sponsorship transfer may affect the rental contract — it is advisable to review contract terms when changing employers.
International Differences
Foreign residency systems differ between countries. In the UAE, the Golden Visa grants 5-10 years renewable residency without a sponsor, with the right to own properties in approved areas. In Turkey, short-term or long-term residency is not tied to a sponsor, and foreigners may own properties in most regions (except border and military areas). In Egypt, investor residency is granted for those investing certain amounts in real estate. In the UK, Tier 2 / Skilled Worker visa is tied to an employer and does not automatically grant ownership rights (but no prohibition). The Saudi advantage of Premium Residency lies in expanding real estate ownership rights for residents and opening up the real estate economy.