• Insights

Elimination of Yellow Band from Nitaqat Program

December 10, 2019

insight-news-default

Country / Territory

  • Saudi ArabiaSaudi Arabia

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a Glance

  • The Ministry of Labor and Social Development (MLSD) will eliminate the yellow band of the Nitaqat program on January 26, 2020.
  • Yellow-rated companies will automatically be moved to the red band and will be considered noncompliant with Saudization levels until their rating improves.
  • Downgraded companies will not be able to apply for new visas for foreign nationals, change foreign nationals’ occupations or renew work permits until their ratings improve.

The situation

The Ministry of Labor and Social Development (MLSD) will cancel the yellow band of the Nitaqat program on January 26, 2020. Yellow-rated companies will automatically be moved to the red band and will be considered noncompliant with required Saudization levels until their ratings improve.

Impact

Downgraded companies will not be able to apply for new visas for foreign nationals, change foreign nationals’ occupations or renew work permits until their ratings improve.

Downgraded employers can choose to subscribe to the Parallel Saudization program to upgrade their Nitaqat tier level immediately. Introduced in 2017, the program allows employers to pay a prescribed monthly fee that corresponds to each missing Saudization unit, instead of hiring Saudi national employees. The Parallel Saudization program is primarily meant for companies that need to upgrade their Nitaqat level quickly, for example to become eligible for a block visa quota. It is therefore not recommended for employers that require a long-term solution for their Saudization strategy.

Background

  • Nitaqat program. The MLSD introduced the Nitaqat program in 2011. The program requires Saudi companies to employ a certain ratio of Saudi nationals to foreign workers, depending on the company’s industry and size. The program was implemented to reduce the number of unemployed Saudi nationals and to boost the employment of Saudis in the private sector.
  • Nitaqat band levels. Based on their compliance with the program, companies are rated at a certain band level, ranging from red (the bottom tier) to platinum (the sixth and highest tier). The higher a company’s rating, the more immigration benefits they are granted; the lower the company’s rating, the more immigration restrictions are imposed. For example, employers with green or platinum ratings are eligible to obtain block visas, which allows them to hire foreign workers. Both the red and yellow categories signify that companies did not achieve the required Saudization rate.
  • Easing of Saudization restrictions. Prior to the elimination of the yellow band, the Saudi government had been easing restrictions on employers hiring foreign workers in Saudi Arabia. For example, the MLSD announced that select employers would be eligible for the reimbursement of or exemption from the monthly fee paid for each sponsored worker; allowed companies with lower Nitaqat ratings to be eligible for block visa approvals and increased the validity period of block visas.

 

Looking ahead

Although the government has been easing block visa regulations in order to make it easier for compliant employers to hire foreign nationals in Saudi Arabia, the new regulation signifies that the government is also prioritizing the hiring of Saudi nationals. The government is likely pursuing this measure to reduce current local unemployment levels, which hover around 12%, and are largely the result of high level of university graduates seeking work in the country.

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].

Country / Territory

  • Saudi ArabiaSaudi Arabia

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Blog post

Right to Work Changes from 1 October 2026: Why Employers Need to Act Now

Partner Naomi Goldshtein discusses the UK Right to Work changes taking effect from 1 October 2026 and what employers should do now to strengthen identity verification, workforce oversight and compliance across direct and extended worker populations.

Learn more

Podcast

Insight & Impact - Episode 2: Why Data Matters

Canada Managing Partner Cosmina Morariu and Senior Director Leah L. Rogal discuss how immigration, demographic, labor market and economic data can help organizations interpret policy developments, anticipate talent needs and make more strategic workforce and mobility decisions.

Learn more

Fragomen news

Fragomen Opens Denver Office, Strengthening Support for Colorado Employers

Fragomen opens a Denver office to expand immigration support for Colorado employers and growing businesses.

Learn more

Video

Ordinary Naturalisation in Switzerland | #MobilityMinute

Manager Mihaela Dumitru discusses key requirements for ordinary naturalisation in Switzerland, including residence, integration, language skills and local knowledge assessments.

Learn more

Blog post

Pre-Settled Status and Absences From the UK: When Could Status Be at Risk?

In this blog, Immigration Consultant Mirela Sartori explains when absences could place status at risk, how the Home Office assesses residence and what to do if you receive a “minded to curtail” notice, which generally requires a response within 28 days.

Learn more

Article

Foreign Birth Registration: Mistakes That Can Delay Irish Citizenship Applications

From documentation gaps and certification errors to missed deadlines, Senior Immigration Consultant Patricia Rezmives highlights 8 common FBR pitfalls and how applicants can avoid them.

Learn more

Blog post

Vous envisagez les États-Unis pour la rentrée prochaine ? C'est le moment de préparer votre visa E-2!

Entrepreneurs français : anticipez votre projet d’installation aux États-Unis avec un visa E-2. Découvrez les étapes clés pour préparer votre investissement, votre demande de visa et le déménagement familial avant la prochaine rentrée scolaire.

Learn more

Media mentions

Biometric Update: Fragomen-SICPA JV Adds IDEMIA Biometrics to Assemble End-to-End Identity Platform

Fragomen and SICPA expand their digital identity platform through a strategic collaboration with IDEMIA Public Security.

Learn more

Blog post

Document Legalization Is Becoming a Global Mobility Compliance Issue: Five Trends Employers Should Watch

In this blog, UAE Consular and Document Services Manager Minu Joseph examines five global legalization trends through a Middle East lens—and outlines how employers can prepare earlier to keep assignments on track.

Learn more

Blog post

Doing Business in Qatar: Growth and Workforce Mobility

In this blog, Corporate Services Manager Julia Ignatenko explores why businesses should coordinate company formation, regulatory compliance, leadership presence and workforce mobility from the outset.

Learn more

Awards

Fragomen Wins Immigration Provider of the Year: 2026 FEM APAC EMMAs

Fragomen won Immigration Provider of the Year at the 2026 FEM APAC EMMAs, and our Worldwide Immigration Trends Report 2026 received a Highly Commended recognition in the Thought Leadership category.

Learn more

Media mentions

Forbes: DHS Adds Immigration Rule Stopping H-1B Spouses From Working To Agenda

Partner Kevin Miner discusses DHS’ proposed rule to end employment authorization for certain H-4 spouses of H-1B professionals.

Learn more

Blog post

Right to Work Changes from 1 October 2026: Why Employers Need to Act Now

Partner Naomi Goldshtein discusses the UK Right to Work changes taking effect from 1 October 2026 and what employers should do now to strengthen identity verification, workforce oversight and compliance across direct and extended worker populations.

Learn more

Podcast

Insight & Impact - Episode 2: Why Data Matters

Canada Managing Partner Cosmina Morariu and Senior Director Leah L. Rogal discuss how immigration, demographic, labor market and economic data can help organizations interpret policy developments, anticipate talent needs and make more strategic workforce and mobility decisions.

Learn more

Fragomen news

Fragomen Opens Denver Office, Strengthening Support for Colorado Employers

Fragomen opens a Denver office to expand immigration support for Colorado employers and growing businesses.

Learn more

Video

Ordinary Naturalisation in Switzerland | #MobilityMinute

Manager Mihaela Dumitru discusses key requirements for ordinary naturalisation in Switzerland, including residence, integration, language skills and local knowledge assessments.

Learn more

Blog post

Pre-Settled Status and Absences From the UK: When Could Status Be at Risk?

In this blog, Immigration Consultant Mirela Sartori explains when absences could place status at risk, how the Home Office assesses residence and what to do if you receive a “minded to curtail” notice, which generally requires a response within 28 days.

Learn more

Article

Foreign Birth Registration: Mistakes That Can Delay Irish Citizenship Applications

From documentation gaps and certification errors to missed deadlines, Senior Immigration Consultant Patricia Rezmives highlights 8 common FBR pitfalls and how applicants can avoid them.

Learn more

Blog post

Vous envisagez les États-Unis pour la rentrée prochaine ? C'est le moment de préparer votre visa E-2!

Entrepreneurs français : anticipez votre projet d’installation aux États-Unis avec un visa E-2. Découvrez les étapes clés pour préparer votre investissement, votre demande de visa et le déménagement familial avant la prochaine rentrée scolaire.

Learn more

Media mentions

Biometric Update: Fragomen-SICPA JV Adds IDEMIA Biometrics to Assemble End-to-End Identity Platform

Fragomen and SICPA expand their digital identity platform through a strategic collaboration with IDEMIA Public Security.

Learn more

Blog post

Document Legalization Is Becoming a Global Mobility Compliance Issue: Five Trends Employers Should Watch

In this blog, UAE Consular and Document Services Manager Minu Joseph examines five global legalization trends through a Middle East lens—and outlines how employers can prepare earlier to keep assignments on track.

Learn more

Blog post

Doing Business in Qatar: Growth and Workforce Mobility

In this blog, Corporate Services Manager Julia Ignatenko explores why businesses should coordinate company formation, regulatory compliance, leadership presence and workforce mobility from the outset.

Learn more

Awards

Fragomen Wins Immigration Provider of the Year: 2026 FEM APAC EMMAs

Fragomen won Immigration Provider of the Year at the 2026 FEM APAC EMMAs, and our Worldwide Immigration Trends Report 2026 received a Highly Commended recognition in the Thought Leadership category.

Learn more

Media mentions

Forbes: DHS Adds Immigration Rule Stopping H-1B Spouses From Working To Agenda

Partner Kevin Miner discusses DHS’ proposed rule to end employment authorization for certain H-4 spouses of H-1B professionals.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
September 4, 2026 | DenmarkDenmark: New Immigration Pathway for Certified Employers Hiring Foreign Nationals from Select Countries
September 8, 2026 | United StatesFragomen Opens Denver Office, Strengthening Support for Colorado Employers
September 8, 2026 | RussiaRussia: New Monitoring Application Requirements for Certain Nationals
September 8, 2026 | 🌐Worldwide/Ukraine: Temporary Protection Status - Country-Specific Updates
September 4, 2026 | 🌐Biometric Update: Fragomen-SICPA JV Adds IDEMIA Biometrics to Assemble End-to-End Identity Platform
September 4, 2026 | DenmarkDenmark: New Immigration Pathway for Certified Employers Hiring Foreign Nationals from Select Countries
September 8, 2026 | United StatesFragomen Opens Denver Office, Strengthening Support for Colorado Employers
September 8, 2026 | RussiaRussia: New Monitoring Application Requirements for Certain Nationals
September 8, 2026 | 🌐Worldwide/Ukraine: Temporary Protection Status - Country-Specific Updates
September 4, 2026 | 🌐Biometric Update: Fragomen-SICPA JV Adds IDEMIA Biometrics to Assemble End-to-End Identity Platform
September 4, 2026 | DenmarkDenmark: New Immigration Pathway for Certified Employers Hiring Foreign Nationals from Select Countries
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.