The terms and phrases mentioned below - wherever they appear in these regulations - shall have the meanings specified next to them, unless the context of the text requires otherwise:

• Regulations: The regulations and rules for practicing the activity of mediating in the employment of Saudis.

• Licensee: An office or company for the employment of Saudis, which has obtained a license from the Ministry to provide the organized activity in these regulations.

• Job seeker: Any Saudi citizen seeking employment; in accordance with the provisions of these regulations.

• Employer: Any natural or legal person seeking one or more Saudi workers; in accordance with the provisions of these regulations.

• Mediating in employment: The service of employing Saudi males and females for the benefit of employers in the Kingdom.

• Office: A licensed office for the employment of Saudis authorized by the Ministry to practice the activity of mediating in the employment of Saudis.

• Company: A company for the employment of Saudis that is licensed to practice the activity of mediating in the employment of Saudis; in accordance with the provisions of these regulations.

• License: A license granted by the Ministry to the applicant, after fulfilling the conditions and requirements stipulated in these regulations and related systems, authorizing them to practice the activity for which they were licensed; in accordance with these regulations.

• Applicant: The person who applies to the Ministry for a license to establish an office or company for the employment of Saudis; in accordance with the provisions of these regulations.

• License seeker: The one who has obtained preliminary approval to obtain a license to practice the activity of mediating in the employment of Saudis, whether it is a license for an office or a company.

1. To obtain a license (office) for the activity of mediating in the employment of Saudis, the following is required:

• A. The owner of the office must be a Saudi national.

• B. The owner of the office must be at least twenty-five years old.

• C. The owner of the office must hold a university degree or its equivalent, or must have a high school diploma with at least three years of experience in the field of employment.

• D. The owner of the office must not have been previously convicted of a crime that undermines honor, trust, or combating human trafficking, unless their honor has been restored regarding that conviction.

• E. The owner of the office must manage the office themselves, and a deputy may be appointed who meets the previous conditions that must be met by the owner of the office.

2. To obtain a license (company) for the activity of mediating in the employment of Saudis, the following is required:

• A. It must be a company with an independent commercial register; in accordance with the provisions of the Companies Law.

• B. The company's capital must be wholly owned by Saudi natural or legal persons.

• C. The registered capital of the company in the commercial register must not be less than (500,000) five hundred thousand Saudi Riyals.
  

• D. The natural person participating in the establishment of a company, or joining it after establishment, must meet the following:

  • Must be a Saudi national

  • Must not have been previously convicted of a crime that undermines honor, trust, or combating human trafficking, unless their honor has been restored regarding that conviction.

  • Must not have previously obtained a license for an office to mediate in the employment of Saudis, or been a partner in a company for mediating in the employment of Saudis, or been a partner in a company that is a partner in a company mediating in the employment of Saudis, and the license was revoked by a decision as a penalty.

  • The legal person participating in the establishment of a company, or joining it after establishment, must achieve the minimum localization percentage.

  • A manager must be appointed for the company who meets the conditions required for the owner of the office, and the company must ensure that these conditions are maintained for the manager throughout the duration of the license.

To obtain a license to engage in the activity of mediating in the employment of Saudis, preliminary approval must be issued by the Ministry to establish an office or a Saudi employment company, according to the following procedures and regulations:

• First: The license applicant, or their representative, must submit a request to obtain preliminary approval to grant a license for an office or company to engage in the activity of employing Saudis, including the name and ID number of the office owner, or a list of names and national ID numbers of all applicants to establish the company, and their ownership percentages, with a commitment not to change this list, accompanied by the following:

  • 1. The company's articles of incorporation if the license is for a company.

  • 2. The business plan of the office or company during the requested license period.

• Second: After reviewing the application, the Ministry may take one of the following decisions:

  • 1. Grant preliminary approval, and issue a signed and stamped document authorizing the commencement of establishing a Saudi employment mediation company.

  • 2. Reject the application, provided that the decision in this case is justified.

If the Ministry decides to reject the claim, or withdraw the initial approval after it has been issued, and cancel it, the holder of that approval may not submit another license application before one year has passed from the date they are notified of the decision to reject the claim, or withdraw the approval: and cancel it.

To obtain a license for an office or company to engage in the activity of mediating the employment of Saudis, the following procedures must be taken: 

• First: The applicant for the license, or their representative, must submit to the Ministry a claim for the license, accompanied by the following documents: 

  • 1. A copy of the commercial register of the office or company (with the original for verification).

  • 2. A copy of the ownership deed or lease contract for the office or company location (with the original for verification).

  • A bank guarantee for the office license amounting to (100,000) one hundred thousand Saudi Riyals. For the company license, the amount is (300,000) three hundred thousand Saudi Riyals, provided that the bank guarantee is irrevocable from one of the local banks, according to the model approved by the Ministry. 

• Second: The Ministry, after studying the claim, may take one of the following decisions: 

  • 1. Grant the license, and a document will be issued by the Assistant Minister for Customer Services and Labor Relations. 

  • 2. Reject the license claim, provided that the decision is justified, in which case the initial approval decision is considered canceled.

The licensee must carry out their activity within a maximum period of six months from the date of obtaining the license, during which an interactive website must be established, in accordance with the requirements set by the Ministry, and it must include the following electronic records:

• A. An electronic record that registers the contracts signed with employers, specifically noting the date of the agreement between them and the employer.

• B. An electronic record that registers the applications submitted by job seekers, the names of the establishments they have been attached to, their activities, and any other necessary data.

The duration of the license is two Hijri years, renewable according to the following procedures:

• First:The licensee, or their representative, shall submit to the Ministry a claim for the renewal of the license, according to the form prepared by it, at least sixty days before the expiration of the license, accompanied by the following:

  • 1. A report on the activities of the office or company during the previous period.

  • 2. Renewal of the bank guarantee to cover the renewal period.

  • 3. Any other document requested by the Ministry.

• Second:The Ministry, after studying the claim, may take one of the following decisions:

  • 1. Renew the license, and the license shall be issued for the new duration by the Undersecretary of the Ministry for Customer Services and Labor Relations.

  • 2. Reject the claim for renewal of the license if one of the following reasons is present:

  • A. If it is proven that the licensee has ceased to practice their activity for six consecutive months, unless the cessation is for a reason accepted by the Ministry.

• B. If they violate one or more of the conditions of the license.

In this case, the Ministry shall notify the relevant authorities, and the licensee must cease their activities after the expiration of the license, settle all their obligations towards their employees, job seekers, and employers they deal with, and the licensee or partners remain subject to the authority of the Ministry and responsible before it for any violations or actions that may create rights for others.