
The Ministry of Labour and Social Development (MLSD) has announced significant changes to the Saudization scheme, known as Nitaqat Program. The new regulations are expected to go into effect on September 3, 2017. The most significant changes include the raised Saudization ratios and the requirement for an employer to be rated a higher tier ("high green" or "platinum") than is currently required to qualify for Block Visa approval.
Classification of Companies
The Nitaqat Program establishes the number of local employees an entity must employ prior to hiring foreign workers, depending on an entity’s industry and size.
Under the new scheme, company size thresholds will be expanded and Nitaqat criteria will apply to companies with six or more employees, as opposed to ten or more employees, as under the current scheme.
Saudization Ratios
The new scheme will change Saudization targets for the majority of industries and company categories. For example, to qualify for a Block Visa, a company will need a high tier rating ("high green" or "platinum"). This means a company will need to hire more Saudi employees than currently required.
Immigration Restrictions and Benefits
Depending on the tier level, companies are subject to certain immigration restrictions or benefits. Under the new program, only employers in the "high green" (fifth tier out of six) and "platinum" (last tier) levels will be eligible for a Block Visa. Currently, employers rated within the "green" tier qualify for a Block Visa.
Entities rated "green" or above (the fourth tier out of six) may transfer an employee’s sponsorship to a different employer, while entities in the "low green" category (the third tier out of six) may do so with certain limitations.
What This Means for Employers and Foreign Nationals
The changes discussed above are in line with recent efforts by Saudi authorities to create more employment opportunities for Saudi nationals, e.g., the introduction of labor market testing and increased government fees for residence permits.
Employers in Saudi Arabia will have to hire more Saudis in order to remain eligible to employ foreign workers and to avoid restrictions on other services, including transferring sponsorship and obtaining and renewing work permits, to name a few.
Employers should contact their immigration professional to review the impact of the new regulations.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Video
Senior Associate Isabel Schnitzler discusses how to navigate business travel in Germany.
Awards
Partners Molly Carey and Catherine Macris are finalists for the 2025 New England Legal Awards in the Partner of the Year and Regional Managing Partner of the Year categories.
Media mentions
Matawan Managing Partner Rahul Shah reflects on his path in immigration law and shares his perspective on global mobility.
Awards
The 2026 edition of The Best Lawyers in America™ honors numerous Fragomen attorneys for excellence in immigration law, including Partner Sarah K. Peterson, who received the distinguished “Lawyer of the Year” award.
Video
In this video, Senior Manager Ben Morgan offers a comprehensive overview of Greek citizenship by descent—a key pathway for individuals with Greek ancestry to obtain citizenship.
Blog post
Partner Aim-on Larpisal and Senior Knowledge Management Specialist outline key visa options available to international students seeking to study in Thailand, emphasizing strategic planning for a smooth application process.
Fragomen news
Partner Charles Johanes contributed insights to the Australia section of a global immigration and mobility guide.
Media mentions
Pittsburgh Managing Partner Alex Castrodale and Associate Adam Teets highlight the need for US employers to prepare for unannounced immigration compliance checks.
Blog post
Associates Stephanie Fitton and Halil Kaya and Paralegal Marcus Alexander Lang-Rawlings discuss how UK changes to the Skilled Worker visa in 2025 are reshaping sports sector employment.
Blog post
Assistant Business Immigration Managers Jeszel Panistante-Cabral, Elsie Lim and Nellanie Quimson explore the complexities young professionals face entering the workforce and the evolving hiring landscape in Singapore.
Blog post
Director David Iannella discusses Fragomen Germany’s approach to outbound immigration solutions and how the office supports global mobility through visa services and compliance expertise.
Blog post
Corporate Services Manager Asfandyar Sheikh and Assistant Corporate Services Manager Ka-Ying Leung discuss Saudi Arabia’s push for corporate transparency through new ownership disclosure rules.
Video
Senior Associate Isabel Schnitzler discusses how to navigate business travel in Germany.
Awards
Partners Molly Carey and Catherine Macris are finalists for the 2025 New England Legal Awards in the Partner of the Year and Regional Managing Partner of the Year categories.
Media mentions
Matawan Managing Partner Rahul Shah reflects on his path in immigration law and shares his perspective on global mobility.
Awards
The 2026 edition of The Best Lawyers in America™ honors numerous Fragomen attorneys for excellence in immigration law, including Partner Sarah K. Peterson, who received the distinguished “Lawyer of the Year” award.
Video
In this video, Senior Manager Ben Morgan offers a comprehensive overview of Greek citizenship by descent—a key pathway for individuals with Greek ancestry to obtain citizenship.
Blog post
Partner Aim-on Larpisal and Senior Knowledge Management Specialist outline key visa options available to international students seeking to study in Thailand, emphasizing strategic planning for a smooth application process.
Fragomen news
Partner Charles Johanes contributed insights to the Australia section of a global immigration and mobility guide.
Media mentions
Pittsburgh Managing Partner Alex Castrodale and Associate Adam Teets highlight the need for US employers to prepare for unannounced immigration compliance checks.
Blog post
Associates Stephanie Fitton and Halil Kaya and Paralegal Marcus Alexander Lang-Rawlings discuss how UK changes to the Skilled Worker visa in 2025 are reshaping sports sector employment.
Blog post
Assistant Business Immigration Managers Jeszel Panistante-Cabral, Elsie Lim and Nellanie Quimson explore the complexities young professionals face entering the workforce and the evolving hiring landscape in Singapore.
Blog post
Director David Iannella discusses Fragomen Germany’s approach to outbound immigration solutions and how the office supports global mobility through visa services and compliance expertise.
Blog post
Corporate Services Manager Asfandyar Sheikh and Assistant Corporate Services Manager Ka-Ying Leung discuss Saudi Arabia’s push for corporate transparency through new ownership disclosure rules.
