Though they can often be frustrating, the rules laid down by bureaucracy generally serve some purpose. “Red tape” is an easy target for critics, not least in the media. Officials whose job it is to enforce regulations, may sometimes seem to take unnecessary pleasure in pointing out the complexities of a process. But by and large they do not deserve to be the brunt of annoyance.

The key proof of responsive government is the way in which it will trim or even cut red tape when it becomes clear that a particular set of rules and regulations is seen to have outlived its usefulness. Twelve-month iqama validity is a case in point.

At a time when Saudi Arabia began its rapid economic expansion, it was clear that a system to regulate the presence of foreigners had to be designed. The residence permits that expatriates are obliged to have with them at all times have lasted for just 12 months. While this may have been adequate when it was first introduced, it has become clear that the short time period no longer serves. Indeed, a compelling case has been made by business that it actually represents a cost to the economy.

Thus the announcement that five-year iqamas are to be issued is as welcome to Saudi companies and organizations as it is to expatriates themselves. For foreigners, longer-term clarity over their residence status will enable them to make better plans. For Saudi organizations there is going to be a clear boost to continuity and thus productivity. Many projects require the long-term presence of foreign nationals. Thus the need to renew residence permits has been disruptive. It has also encouraged some foreign firms to send their people to work in Saudi Arabia for just one year. This poses challenges for both their Saudi partners and clients and also for the individuals concerned. Getting used to working with new people or acclimatizing to a new country both take time that could be used more productively.

A top hospital administrator says that the one-year iqama has created a level of uncertainty which actually discouraged medical professionals from coming to work in the Kingdom. From the point of view of patients undergoing a long course of treatment, it is clearly better to be looked after by the same consultants and nurses rather than have a succession of new faces looking at their notes for the first time.

The change to a five-year residency is also going to have a clear impact on direct foreign investment, which the Kingdom is going out of its way to attract. It is not so much the funds that are invested as the transfer of technology and expertise that are important. And behind the drive to bring in overseas investment is the principle that these commitments should be long-term. The government has rightly taken the view that it does not want outside investors to arrive seeking a quick profit and a quick exit. The growth of a prosperous nonoil economy will be boosted by outside interests who are looking five, ten or even 20 years down the line. The 12-month residence permit does not fit in with this ambition. It perhaps sends the wrong message.

The final details of the changes to the iqama are due to be published shortly after approval by the Ministry of Interior. It is also being said, that in response to calls from Saudi business leaders, the government may consider scrapping the exit and re-entry visa system. Described by one top businessman as an unnecessary hassle, if the requirement is abandoned, it will bring the Kingdom into line with other GCC countries, particularly the UAE and Bahrain. The argument is that if individuals have valid residence permits, there ought to be no problem with having them coming and going freely. The visa requirement would only kick in if, for instance, a foreign resident had been out of the country for more than six months.

There is also a clear advantage in terms of business efficiency and the morale of foreign residents. Busy executives frequently need to change their diaries at the last minute and swerve off to deal with unexpected issues. Such individuals working here in the Kingdom face the constraint of organizing the exit and re-entry visa. Meanwhile, on a personal level the exit visa requirements for foreigners already holding residence, can pose a challenge. The idea that there is a process to go through before you can rush to deal with an urgent family matter back home is clearly worrisome.