Important Updates
Important Updates
May 8, 2025 | NigeriaNigeria: New Visa Categories and Visa Exemption Implemented
May 8, 2025 | CanadaCanada: International Experience Canada Extension Process Simplified
May 8, 2025 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
May 8, 2025 | 🌐Minimum Salary Changes Announced
May 8, 2025 | NigeriaNigeria: New Digital Process Announced for Quota, Business Permit, and CERPAC Applications
May 8, 2025 | NigeriaNigeria: New Visa Categories and Visa Exemption Implemented
May 8, 2025 | CanadaCanada: International Experience Canada Extension Process Simplified
May 8, 2025 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
May 8, 2025 | 🌐Minimum Salary Changes Announced
May 8, 2025 | NigeriaNigeria: New Digital Process Announced for Quota, Business Permit, and CERPAC Applications
May 8, 2025 | NigeriaNigeria: New Visa Categories and Visa Exemption Implemented
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian

Select Language

  • English
  • French
  • French - Canadian
ContactCareersMedia
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcastsVideos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationHumanitarian and Evolving Legal Pathways (HELP)Vietnamese ImmigrationImmigration Matters: Your U.S. Compliance RoadmapFragomen Consulting EuropeAustralian Immigration: New Skills in Demand Visa
  • 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
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts
  • Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Humanitarian and Evolving Legal Pathways (HELP)
  • Vietnamese Immigration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Fragomen Consulting Europe
  • Australian Immigration: New Skills in Demand Visa

About Us

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

Select Language

  • English
  • French
  • French - Canadian
ContactCareersMedia
  • 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

Video

Golden Visa Direct Approval Filing via AXS Portal - Tecom Freezone | #MobilityMinute

In this Mobility Minute, Manager Devika Thamattat outlines how, effective immediately, all Golden Visa applications filed by the direct approval route for employees working at companies licensed by the Dubai Development Authority can only be filed via the AXS Portal.

Learn more

Blog post

Understanding Compliance with PIC 4020: Meeting the Character Criteria for Australian Visas

Senior Associate Pamela Taukuro explains the requirements and steps necessary to meet the character criteria for obtaining Australian visas under PIC 4020.

Learn more

Video

France Digital Nomad Visa: Visitor Visa | How To Apply

Immigration Consultant Azela Hadia discusses France’s Visitor Visa – a key option for digital nomads looking to work remotely from one of the world’s most iconic destinations.

Learn more

Blog post

France’s Visitor Visa: A Faster Option for Family Members of Local Hire (Salarié) Employees

Immigration Consultant Laura Varon Osorio discusses France's visitor visa as a faster option for family members of local hire (Salarié) employees.

Learn more

Media mentions

Deutsche-Startups: Workation – How Startups Overcome The Legal Hurdles

Senior Manager Katharina Vorländer outlines the legal and compliance challenges startups must navigate to offer workations while minimising risk.

Learn more

Media mentions

Times of India: Australia: Reduction in Net Migration to Continue; Minimum Salary to Rise for Skilled Visa and International Students May See Visa Fee Hike

Australia and New Zealand Managing Partner Teresa Liu highlights upcoming changes in Australia’s immigration policy under the re-elected Labour party.

Learn more

Video

Passports & Pitch Side: Footballers on the Move ⚽🌍 | #FragomenFC - Ep. 7 (Part 1)

#FragomenFC co-hosts are joined by Senior Associate Tuğba Özyakup and her cousin, Oğuzhan ("Ozzy") Özyakup, a professional footballer who has competed at the highest levels of the sport.

Learn more

Blog post

Understanding the GCC Pension Framework: A Guide to Monthly Contributions, Employer Responsibilities and Compliance

Social Security Manager Gufran Al Bash provides a comprehensive guide to the GCC pension framework, detailing monthly contributions, employer responsibilities and compliance requirements.

Learn more

Media mentions

Business Standard: Liberals' Return in Canada a Win-Lose for Indian Workers, Students: Decoded

Partner David Crawford discusses how Canada’s new Liberal government could bring more predictable immigration policies focused on labour needs.

Learn more

Awards

Fragomen and Partner Rahul Soni Honored at Invest In the USA (IIUSA) I-829 & I-526 Awards Ceremony

Fragomen and Partner Rahul Soni were honored at the Invest In the USA (IIUSA) I-829 & I-526 Awards Ceremony in Houston, Texas, during the 2025 IIUSA EB-5 Industry Forum held from April 28-30, 2025.

Learn more

Blog post

Navigating Tariffs, Talent and Trade: The Automotive Industry Faces a Defining Moment

Partner Christian Dallman discusses how the automotive industry is navigating significant challenges related to tariffs, talent shortages and trade dynamics, marking a critical moment for its future.

Learn more

Awards

Partner Cosmina Morariu Receives Ecosystem Builder Award at Semiconductor Achievement Awards

Partner Cosmina Morariu of Fragomen in Canada received the Ecosystem Builder Award as part of the inaugural Semiconductor Achievement Awards, hosted by Canada’s Semiconductor Council.

Learn more

Video

Golden Visa Direct Approval Filing via AXS Portal - Tecom Freezone | #MobilityMinute

In this Mobility Minute, Manager Devika Thamattat outlines how, effective immediately, all Golden Visa applications filed by the direct approval route for employees working at companies licensed by the Dubai Development Authority can only be filed via the AXS Portal.

Learn more

Blog post

Understanding Compliance with PIC 4020: Meeting the Character Criteria for Australian Visas

Senior Associate Pamela Taukuro explains the requirements and steps necessary to meet the character criteria for obtaining Australian visas under PIC 4020.

Learn more

Video

France Digital Nomad Visa: Visitor Visa | How To Apply

Immigration Consultant Azela Hadia discusses France’s Visitor Visa – a key option for digital nomads looking to work remotely from one of the world’s most iconic destinations.

Learn more

Blog post

France’s Visitor Visa: A Faster Option for Family Members of Local Hire (Salarié) Employees

Immigration Consultant Laura Varon Osorio discusses France's visitor visa as a faster option for family members of local hire (Salarié) employees.

Learn more

Media mentions

Deutsche-Startups: Workation – How Startups Overcome The Legal Hurdles

Senior Manager Katharina Vorländer outlines the legal and compliance challenges startups must navigate to offer workations while minimising risk.

Learn more

Media mentions

Times of India: Australia: Reduction in Net Migration to Continue; Minimum Salary to Rise for Skilled Visa and International Students May See Visa Fee Hike

Australia and New Zealand Managing Partner Teresa Liu highlights upcoming changes in Australia’s immigration policy under the re-elected Labour party.

Learn more

Video

Passports & Pitch Side: Footballers on the Move ⚽🌍 | #FragomenFC - Ep. 7 (Part 1)

#FragomenFC co-hosts are joined by Senior Associate Tuğba Özyakup and her cousin, Oğuzhan ("Ozzy") Özyakup, a professional footballer who has competed at the highest levels of the sport.

Learn more

Blog post

Understanding the GCC Pension Framework: A Guide to Monthly Contributions, Employer Responsibilities and Compliance

Social Security Manager Gufran Al Bash provides a comprehensive guide to the GCC pension framework, detailing monthly contributions, employer responsibilities and compliance requirements.

Learn more

Media mentions

Business Standard: Liberals' Return in Canada a Win-Lose for Indian Workers, Students: Decoded

Partner David Crawford discusses how Canada’s new Liberal government could bring more predictable immigration policies focused on labour needs.

Learn more

Awards

Fragomen and Partner Rahul Soni Honored at Invest In the USA (IIUSA) I-829 & I-526 Awards Ceremony

Fragomen and Partner Rahul Soni were honored at the Invest In the USA (IIUSA) I-829 & I-526 Awards Ceremony in Houston, Texas, during the 2025 IIUSA EB-5 Industry Forum held from April 28-30, 2025.

Learn more

Blog post

Navigating Tariffs, Talent and Trade: The Automotive Industry Faces a Defining Moment

Partner Christian Dallman discusses how the automotive industry is navigating significant challenges related to tariffs, talent shortages and trade dynamics, marking a critical moment for its future.

Learn more

Awards

Partner Cosmina Morariu Receives Ecosystem Builder Award at Semiconductor Achievement Awards

Partner Cosmina Morariu of Fragomen in Canada received the Ecosystem Builder Award as part of the inaugural Semiconductor Achievement Awards, hosted by Canada’s Semiconductor Council.

Learn more

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
  • UK Regulatory Requirements

Our firm

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

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

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

© 2025 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.