Saudi Arabia: From Labour Importation to Talent Integration

 Saudi Arabia: From Labour Importation to Talent Integration 

• By aligning with Vision 2030, Saudi Arabia is actively creating an attractive environment for migrant entrepreneurs to launch and grow innovative businesses.

With the recent abolition of the long-standing Kafala sponsorship system to grant migrant workers greater mobility and rights, Saudi Arabia is shifting from its age-long labour importation to talent integration, providing opportunities for migrant workers to transition into business owners.

This abolition discards the previous employer-tied visa rule, allowing migrant workers to switch jobs within the country without requiring the permission of their employers, in alignment with the Vision 2030 initiatives for a better labour environment. The previous kafala system was heavily criticized for enabling the exploitation of migrant workers due to weak protections, as well as incidents of low pay, harsh work conditions, and widespread discrimination and abuse. 

The emergence of migrant entrepreneurs and migrant owned and operated businesses across the country is suggestive of a significant step toward the achievement of Saudi Arabia’s economic diversification plans. Migrant entrepreneurs are being increasingly supported, particularly through the Entrepreneurship Track of the Premium Residency program. This program offers long-term stability, family inclusion, and business benefits to migrant entrepreneurs. 

Supported by the Vision 2030 initiative and a suite of government reforms, migrant entrepreneurs are increasingly active in sectors like e-commerce, food and beverage, and renewable energy. Others include handmade products, event planning, and digital marketing services. Although specific data detailing the total count of migrant-owned enterprises in the Kingdom is not centrally tracked or reported, it is interesting to note that the number of foreign start-ups licensed under the Entrepreneur License by the Ministry of Investment in Saudi Arabia, MISA, reached 550 companies by mid-2025, an appreciable increase of 118 per cent compared to 2024. 

Similarly, there were more than 1.3 million registered small and medium enterprises across Saudi Arabia as of Q4, according to the General Authority for Small and Medium Enterprises, but the proportion of these that are immigrant-owned is not available in public reports. The government noted the growth in the number of licensed start-ups as a reflection of the efforts to position the country as a regional hub for entrepreneurship by facilitating market entry for foreign businesses and offering a flexible regulatory environment that fosters innovation to attract investment.

A recent study by Md Mizanur Rahman, an Associate Professor at Qatar University, observes that migrant entrepreneurship is embedded within the dynamics of the migration trajectory and the broader factors on which it depends. Referencing the experience of Bangladeshi migrant workers within the Gulf Cooperation Council (GCC) states, Rahman avers that, notwithstanding their marginal character, the Bangladeshi enterprises in the Gulf Cooperation Council (GCC) states, including Saudi Arabia, have flourished because of their willingness to embrace innovation. Bangladeshi workers’ population in Saudi Arabia is estimated at around 3 million, making them the largest expatriate community in the country. Major employment areas include construction, especially for Vision 2030 projects like stadiums, the food and beverage industry, and services, including domestic work.

As of October 2025, for instance, there were approximately 136 restaurants in Saudi Arabia, showing a 14 per cent growth from previous years, with concentrations in the capital city, Riyadh, Eastern Province, and Makkah regions, catering to the large Bangladeshi population in those areas. These restaurants are wholly owned and operated by Bangladeshi nationals, thanks to recent reforms under the Vision 2030, which has significantly liberalized foreign investment laws, allowing up to 100 per cent ownership of businesses in most sectors. Research shows that migrant entrepreneurs operate mostly within the micro-enterprises segment, where the official classification is based on the number of employees (between 1 and 5 full-time employees) and annual revenue (up to 3 million Saudi Riyals - SAR).