HR companies and recruitment firms hiring foreign workers and / or nationals have a two-year grace period to comply with new capital requirements, as outlined in recent amendments (pdf) by the Human Resources and Social Development Ministry. These updated regulations are open for public consultation on Istitlaa until Sunday, 9 February.

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The targeted companies will be classified into four distinct categories, each authorized to perform a specific set of activities within the recruitment and HR sector. Companies will be categorized based on their intended activities, with each category having a corresponding minimum capital requirement, ranging from SAR 5 mn to SAR 100 mn, and a bank guarantee requirement ranging from SAR 2 mn to SAR 10 mn.

Companies will be granted licenses with validity periods of either five or 10 years, depending on their category. All categories will have a five-year license validity, except for the category with a minimum capital requirement of SAR 100 mn, which will have a 10-year license validity.

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