Who This Guide Is For
This article is for three types of readers: expatriate professionals relocating to Saudi Arabia for work, foreign investors who have set up a company and are preparing to live in the Kingdom while running it, and anyone evaluating Saudi Arabia as a long-term residence destination.
Saudi Arabia has changed substantially since 2016. Entertainment, international dining, mixed-gender workplaces, and a broader set of social activities are now normal. This guide covers what daily life actually looks like in 2026 — costs, housing, healthcare, education, and the government platforms that manage residency and services.
1. Cost of Living — What You Actually Pay
Living costs vary significantly between cities and lifestyle choices. The figures below are averages based on General Authority for Statistics (GASTAT) data and market rates for 2026:
| Expense Category | Riyadh (SAR/month) | Jeddah (SAR/month) | Notes |
|---|---|---|---|
| Studio or 1BR apartment (mid-range) | 2,500–4,500 | 2,000–4,000 | Compounds with amenities cost 20–40% more |
| 2BR apartment | 4,000–7,000 | 3,500–6,500 | Varies by district and building age |
| Private school fees | 3,000–8,000+ | 2,500–7,000+ | Per child per month — British/American/IB |
| Groceries (single person) | 800–1,400 | 750–1,300 | Supermarkets well-stocked with imported goods |
| Restaurant meals (mid-range) | 150–350 per meal | 130–300 per meal | Full range from street food to fine dining |
| Private healthcare (consultation) | 200–600 per visit | 200–550 per visit | Mandatory employer health insurance covers most |
| Fuel (per liter) | ~SAR 0.67 (91 octane) | Same nationwide | Government-regulated pricing |
| Riyadh Metro / bus | 4–6 per trip | — | Jeddah public transport more limited |
| Total monthly estimate (single professional) | 7,000–14,000 | 6,500–13,000 | Excludes school fees and large purchases |
Income tax on salaries does not apply in Saudi Arabia for individuals. Zakat applies to Saudi and GCC nationals on eligible wealth — foreign nationals are not subject to Zakat on personal income.
2. Residency Types — Iqama, Premium Residency, and Investor Residency
▸ Standard Work Iqama
The standard residence permit — the Iqama — is issued by the employer via Muqeem platform. It ties the expatriate to the sponsoring company. Annual renewal is required. The Iqama is the primary identity document for all government services, banking, and official transactions in the Kingdom.
▸ Investor Iqama (General Manager Visa)
Foreign investors who set up a Saudi company receive an investor Iqama through their own company as the sponsor. The process runs through Qiwa platform and Enjaz. The investor is both the company owner and the Iqama holder — there is no third-party sponsor. Motaded manages this process as part of the company setup.
▸ Premium Residency
Premium Residency is a long-term residency option that does not require an employer sponsor. Available in two categories: permanent (SAR 800,000 one-time fee) and annual renewable (SAR 100,000 per year). It grants the holder the right to reside, work, and conduct business without an employer sponsor. See our Premium Residency guide for eligibility details.
▸ Transferable Iqama
Workers who already hold a Saudi Iqama can transfer their sponsorship to a new employer without the original employer's consent under the Labor Relations Improvement Initiative. This is managed via Qiwa. See our transferable Iqama service.
3. Housing — What the Market Looks Like
Housing in Saudi Arabia is predominantly rental-based for expatriates. Key facts for 2026:
• All rental contracts must be documented on the Ejar platform (Ministry of Housing) — this is mandatory and protects both landlord and tenant
• A national address registration via the SPL (Saudi Post) platform is required — this is linked to your Iqama and used for all government correspondence
• Compounds (gated residential communities) offer housing with shared amenities — popular with expatriate families, typically 20–40% more expensive than standalone apartments
• Foreigners cannot purchase residential property in Makkah and Madinah — in other cities, there are specific categories of property available for foreign ownership under current regulations
• Riyadh's main expatriate residential areas include Al-Olaya, Al-Malqa, Al-Nakheel, Diplomatic Quarter, and Hittin
4. Healthcare
The cooperative health insurance system in Saudi Arabia requires all employers to provide health insurance to their employees and dependents. The Council of Cooperative Health Insurance (CCHI) regulates all policies.
• Employer-provided health insurance is mandatory — it covers consultations, specialist visits, and hospitalization at network hospitals
• Government hospitals are available to Saudi nationals and some expatriate categories — private hospitals serve most expatriates
• Major hospital networks: Saudi German Hospital, Al-Hammadi, King Faisal Specialist Hospital (referral), and international hospital chains in major cities
• The Sehhaty app (Ministry of Health) manages vaccinations, appointment booking, and health records — linked to the Absher identity
5. Education
International schools in Saudi Arabia follow British, American, IB, or other curricula. All operate under the oversight of the Ministry of Education. Key points for expatriate families:
• School fees range from SAR 25,000 to SAR 120,000+ per year per child depending on curriculum and school tier
• British curriculum schools: British International School Riyadh, Doha British School, and others
• American curriculum schools: American International School of Riyadh, Continental School
• IB schools: several options in Riyadh and Jeddah
• Saudi public schools are free but teach in Arabic — international schools are the standard for expatriate children
6. Transport
Riyadh has a functional metro network (6 lines, 85 stations) that opened in 2024. The metro connects major business districts, shopping malls, and residential areas. Riyadh Buses (the bus network) complements the metro.
• Metro daily pass: SAR 20 — monthly pass available
• Private cars remain the dominant transport mode — fuel prices are among the lowest globally (SAR 0.67/liter for 91 octane)
• Ride-hailing: Uber and Careem both operate widely across Saudi cities
• Driving license for expatriates: issued via the Absher platform — citizens of some countries can convert their home license directly
• Jeddah and Dammam have less developed public transport than Riyadh — private vehicles or ride-hailing are the main options
7. Government Platforms for Daily Life
| Platform | What It Manages | Who Uses It |
|---|---|---|
| Absher | Identity verification, driving license, exit/re-entry visas, family services | All residents |
| Muqeem | Iqama issuance and renewal — employer-facing | Employers and HR teams |
| Qiwa | Employment contracts, work permits, sponsorship transfers | Employers and employees |
| Ejar | Rental contract documentation and tenant/landlord protections | All renters and landlords |
| Sehhaty | Health records, vaccinations, medical appointments | All residents |
| Tawakkalna | Digital identity, vaccine records, government services access | All residents |
| SPL (Wasl) | National address registration | All residents and businesses |
Most of these platforms require an Absher account linked to a Saudi mobile number and biometric registration.
8. Banking
Opening a personal bank account requires a valid Iqama, a Saudi mobile number registered in your name, and a visit to a branch or digital onboarding through the bank's app. Major banks with English-language services: Al Rajhi Bank, Saudi National Bank (SNB), Riyad Bank, Alinma Bank, and HSBC Saudi Arabia.
Payroll for employees must be processed through the Wage Protection System (WPS) via Mudad platform. Salaries are transferred electronically and the system verifies payment compliance. For foreign investors managing their own company's payroll, Motaded handles this through our payroll service.
9. Social Life and What Has Changed
Saudi Arabia's social environment has changed substantially since 2016. Entertainment venues, cinemas, concerts, sports events, and mixed-gender workplaces are all legal and active. Key developments for 2026:
• Cinemas: AMC, Vox, and local operators across major cities — Saudi Arabia now has one of the fastest-growing cinema markets globally
• Restaurants and cafes: full range from international chains to local Saudi cuisine — alcohol is not served anywhere in the Kingdom
• Sports: professional football, Formula E racing in Riyadh, tennis tournaments, and golf — Saudi sports investment has made the Kingdom a regular host of major events
• Shopping: large mall networks in all major cities including Mall of Arabia, Riyadh Park, and Red Sea Mall in Jeddah
• Weekends: Friday and Saturday are the official weekend — working hours are Sunday through Thursday
10. Practical First Steps After Arriving
For an investor or General Manager arriving to run their Saudi company, the immediate checklist after landing:
| Step | Action | Platform / Authority |
|---|---|---|
| 1 | Register your SIM card with a Saudi mobile number — required for Absher and all government platforms | Telecom provider |
| 2 | Complete biometric registration — fingerprint and photo at Ministry of Interior (ABSHER appointment) | Absher platform |
| 3 | Open your personal bank account | Bank branch or digital onboarding |
| 4 | Register your residence address on the national address platform | SPL (Wasl) platform |
| 5 | Activate your Absher account — links identity to all digital services | absher.sa |
| 6 | Confirm your health insurance policy with your employer | CCHI portal or employer HR |
| 7 | Receive your Iqama — issued by employer via Muqeem after all procedures are complete | /platforms/muqeem |
Relocating to Saudi Arabia?
Contact us at info@motaded.com.sa. Motaded handles company setup, investor Iqama, work permits for your team, and payroll compliance. See our HR services and residency options.
Also Read: Iqama and Work Permit Costs | Premium Residency | Quality of Life in Saudi Arabia
Q: What is the cost of living in Riyadh for a single expatriate professional in 2026?
A: A realistic monthly budget for a single professional in Riyadh: SAR 7,000–14,000. This covers a mid-range apartment (2,500–4,500), groceries (800–1,400), dining out (1,500–3,000), transport (500–1,200), and personal expenses (1,000–2,000). School fees and dependent costs are additional.
Q: Can a foreign investor in Saudi Arabia sponsor their family for residency?
A: Yes. Once the investor holds a valid Iqama, they can sponsor dependents (spouse and children) through the Absher platform. Requirements include a university degree, a documented employment contract, and authenticated family documents. See our Iqama and Work Permit Costs article for dependent sponsorship fees.
Q: Is it easy to open a bank account as a new resident in Saudi Arabia?
A: Yes — most banks now offer digital onboarding. You need a valid Iqama, a Saudi mobile number registered in your name, and biometric registration. Account opening typically takes 1–3 business days digitally or same-day at a branch.
Q: What is Premium Residency and who qualifies?
A: Premium Residency is a long-term residency that does not require an employer sponsor. Two categories: permanent (SAR 800,000) and annual renewable (SAR 100,000/year). It grants the right to reside, work, and do business independently. See our Premium Residency guide for full eligibility criteria.
Q: Can an expatriate purchase property in Saudi Arabia?
A: Foreign residents can purchase specific categories of residential property in Saudi cities outside Makkah and Madinah under current regulations. Property ownership in Makkah and Madinah is restricted to Saudi nationals. Regulations on foreign property ownership are evolving — consult our consultation service for current rules.
