Nitaqat
Nitaqat ("ranges" or "zones") is a Saudization program introduced by the Saudi Ministry of Labour. The initiative was announced in June 2011, when the Ministry of Labour passed Ministerial Resolution no. (4040). The implementation deadline for the program was in 2013.
The program classifies the country's private firms into four categories: Premium, Green, Yellow and Red. Premium and Green categories include the companies with high Saudization rates, while Yellow and Red include the ones with low rates. The classification of other companies is based on the Saudization percentage (% of Saudi employees) and the total number of employees. The companies with less than 10 employees are exempt from the program, but still need to employ at least one Saudi citizen.
| Total no. of employees | Saudization percentage | |||
|---|---|---|---|---|
| Red | Yellow | Green | Premium | |
| 10 – 49 | 0 – 4% | 5 – 9% | 10 – 39% | ≥ 40% |
| 50 – 499 | 0 – 5% | 6 – 11% | 12 – 39% | ≥ 40% |
| 500 – 2,999 | 0 – 6% | 7 – 11% | 12 – 39% | ≥ 40% |
| 3,000+ | 0 – 6% | 7 – 11% | 12 – 39% | ≥ 40% |
The companies receive incentives or penalties depending on the category they belong to:
- Premium category companies (VIP)
- Can recruit foreign workers using easier visa processing
- Recruit employees from the Red and Yellow category companies and transfer their visas without their employer's permission
- Get a one-year grace period when their licenses or registrations expire
- Transfer the visas of potential employees from other companies, even when the employee has not completed two years with the first employer
- Green category companies (Excellent compliance)
- Apply for new visas once every two months
- Recruit employees from the Red and Yellow category companies and transfer their visas without their employer's permission
- Change the professions of their foreign employees (except for positions restricted to the Saudi citizens)
- Get a six-month grace period when their certificates expire
- Renew work permits of foreign employees, whose visas are valid for three months or more
- Yellow category companies (Poor compliance)
- Cannot get new visas, but can get one visa only when two foreign employees depart
- Cannot transfer visas
- Cannot stop Green or Premium category-companies from transferring their employees' visas
- Red category companies (Non-compliance)
- Cannot get new visas
- Cannot transfer visas
- Cannot stop Green or Premium category-companies from transferring their employees' visas
- Cannot renew employees' work permits
- Cannot change employees' professions
- Cannot open new branches or facilities
Read more about this topic: Saudization