Procedural Guide for the Developed Nitaqat Program

Introduction and Purpose of the Evidence

The Ministry of Human Resources and Social Development works to support the localization axis through the Nitaqat Program, which was launched in 2011 as a regulatory tool aimed at increasing the employment rates of Saudis in private sector establishments and encouraging them to provide sustainable job opportunities. The new phase was carefully designed to ensure a balance between enhancing localization and supporting the growth of the private sector, through a comprehensive analysis of the labor market reality and the capacity of establishments across various sectors.

Accordingly, this guide has been prepared to clarify all details related to the new phase of the developed Nitaqat Program, and to inform establishments and entities operating in the Kingdom of Saudi Arabia about the program's amendments, so that they can align their internal systems and ensure their continued compliance with the program.

Definitions

Establishment:

Any project managed by a natural or legal person employing one or more employees, regardless of the type of wage.

Entity:

It is the status with which the Ministry will deal for the purposes of Saudization calculation, recruitment, service transfer, and representing all branches of the same economic activity owned by one establishment.

Economic Activity:

It is a classification of establishments based on the business sector practiced by the entity.

Expatriate Labor:

Workers who are not citizens of the Gulf Cooperation Council countries and work for the benefit of an employer in the Kingdom.

Saudization Percentage:

It is the percentage calculated by dividing the total averages of Saudi labor in the entity’s establishments by (the total averages of Saudi labor in the entity’s establishments + the total averages of expatriate labor in the entity’s establishments) x .100

Nitaqat (Ranges):

It is a classification under the Nitaqat Program based on the Saudization percentage at the establishment.

Technical Details

Services of the Ministry of Human Resources and Social Development according to the scope

  • The Ministry, based on the service provision regulations outlined below, provides a number of facilities to establishments according to the category in which the establishment falls. The following is a list of the most important services provided to establishments according to their category.

  • Platinum Category:

    • ⏺  Receiving visa quota requests for available professions.
    • ⏺  The ability to change the professions of expatriate workers to available professions, taking into account the requirements for changing the profession as stipulated in the provisions of the Unified Customer Service Guide, the Implementing Regulation of the Labor Law, and the relevant ministerial decisions.
    • ⏺  The ability to renew work permits for expatriate workers employed by the establishment regardless of their residency duration, provided that the remaining residency period of the worker does not exceed six months at the time of renewal.
    • ⏺  The possibility of transferring services for expatriate workers from any category, taking into account the regulations of this service and what is stipulated in the Implementing Regulation of the Labor Law and the relevant ministerial decisions.
    • ⏺  Immediate calculation in the Nitaqat Program.
  • High Green Category:

    • ⏺  Receiving visa quota requests for available professions.
    • ⏺  The ability to change the professions of expatriate workers to available professions, taking into account the requirements for changing the profession as stipulated in the provisions of the Unified Customer Service Guide, the Implementing Regulation of the Labor Law, and the relevant ministerial decisions.
    • ⏺  The ability to renew work permits for expatriate workers employed by the establishment regardless of their residency duration, provided that the remaining residency period of the worker does not exceed six months at the time of renewal.
    • ⏺  The possibility of transferring services for expatriate workers from any category, taking into account the regulations of this service and what is stipulated in the Implementing Regulation of the Labor Law and the relevant ministerial decisions.
    • ⏺  Immediate calculation in the Nitaqat Program.
  • Medium Green Category:

    • ⏺  Receiving visa quota requests for available professions.
    • ⏺  The ability to change the professions of expatriate workers to available professions, taking into account the requirements for changing the profession as stipulated in the provisions of the Unified Customer Service Guide, the Implementing Regulation of the Labor Law, and the relevant ministerial decisions.
    • ⏺  The ability to renew work permits for expatriate workers employed by the establishment regardless of their residency duration, provided that the remaining residency period of the worker does not exceed six months at the time of renewal.
    • ⏺  The possibility of transferring services for expatriate workers from any category, taking into account the regulations of this service and what is stipulated in the Implementing Regulation of the Labor Law and the relevant ministerial decisions.
    • ⏺  Immediate calculation in the Nitaqat Program.
  • Low Green Category:

    • ⏺  Suspension of receiving new visa requests.
    • ⏺  Suspension of receiving requests to change the professions of expatriate workers to available professions.
    • ⏺  The ability to renew work permits for expatriate workers employed by the establishment regardless of their residency duration, provided that the remaining residency period of the worker does not exceed six months at the time of renewal.
    • ⏺  Immediate calculation in the Nitaqat Program.
  • Red Category:

    • ⏺  Not allowing the change of professions of expatriate workers employed by the establishment.
    • ⏺  Not allowing the transfer of expatriate workers’ services to the establishment.
    • ⏺  Not allowing the request of new visas.
    • ⏺  Not allowing the issuance of work permits for new expatriate workers.
    • ⏺  Not allowing the renewal of work permits for expatriate workers employed by the establishment.

Annex (1)