New Nitaqat System in Saudi Arabia

As we already know that Nitaqat system came to effect from September 2017 in the Kingdom, which made compulsory for all the business industries and companies to hire a certain amount of Saudi citizens as their employees.

The new Nitaqat system effects depending on the size of any company. Larger a company is, larger the number of Saudi employees to be hired.

There is a ranking system which gives a company a higher rank depending if the larger number of employees are citizens of Saudi Arabia and they are paid well.

There are certain statuses given to each company like Platinum, High Green, Average or Medium Green, Low Green, Yellow and Red depending on the factor of high paid status to the Saudi national employees than the other expat employees.

Let’s elaborate these statuses and their benefit a little:

Platinum: If a company’s status is Platinum, they can apply for visas to hire new expatriate employees and also transfer the sponsorship.

High Green: if a company’s status is High Green, they can also apply for visas to hire expatriate works and also transfer the sponsorship.

Average Medium, Low Green, Yellow and Red: if any company’s status is any of these, then these companies cannot apply for new visas to hire expatriates but they can transfer sponsorship of the employee.

There is a rule for giving training to the Saudi nationals in a company where there are more than 25 employees which must be as long as 4 weeks and a minimum of 1500 SR to be paid as per HRDF (Human Resources Development Fund) and MSLD (Ministry of Labor and Social Development).