• 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

Fragomen news

Comment on DHS Proposed $103,265 Fee on Cap-Subject H-1B Petitions.Learn more

Awards

Fragomen Receives Three 2026 Cartus Awards

Fragomen received three recognitions at the 2026 Cartus Global Network Conference for excellence in service, sustainability leadership and global citizenship.

Learn more
Generic Insights

Blog post

Net Migration Policy: An Explainer Comparing Australia, Canada and the UK

Partner Jack (Eui Chul) Kim, Senior Counsel Dr. Anna Boucher, UK Government Affairs Strategy Director Shuyeb Muquit and Articling Student David Mucz examine how Australia, Canada and the UK measure net migration. They compare efforts to reduce migration with the need to maintain access to international talent, and explain the potential effects on employers, labor markets and economic growth.

Learn more

Media mentions

Bloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope

Partner K. Edward Raleigh discusses how US employers should consider displacement and conduct a risk analysis when assessing H-1B filings in light of recent policy changes.

Learn more

Blog post

The Compliance Risks of International Remote Working and Hush Trips

International remote working can offer valuable flexibility, but undisclosed “hush trips” may expose employers to immigration, social security, insurance, employment-law and tax risks that they cannot properly assess or manage.

Learn more

Blog post

The Narrowing Talent Pipeline: From International Student to Corporate America

Counsel Susan Steger examines recent policy changes and litigation affecting the pathway from F-1 study and practical training through H-1B sponsorship and permanent residence, and the considerations for US employers recruiting and retaining early-career international talent.

Learn more

Media mentions

The National Interest: How Boosting Your Privacy Will Make America More Secure

Managing Director, Digital Identity Amit Sharma explores how digital identity can strengthen privacy and security.

Learn more

Media mentions

CEDA: The Drive to Reduce Net Overseas Migration and the Challenges for Business

Managing Partner, Australia and New Zealand Teresa Liu discusses how Australia’s efforts to reduce net overseas migration are affecting businesses amid ongoing skilled workforce shortages.

Learn more

Media mentions

Australian Broadcasting Corporation: Overnights

Senior Counsel Dr. Anna Boucher discusses Australia’s net migration figures and recent changes to the country’s migration policies.

Learn more

Blog post

Can International Graduates in the Netherlands Qualify for the 30% Ruling? Eligibility Rules Explained

Tiemen Peters, Silvia Norte Mercade and Soraya Driessen outline when international graduates who studied in the Netherlands may qualify for the 30% ruling and the key eligibility, timing and compliance considerations for graduates and employers.

Learn more

Blog post

Right to Work Changes: What Do They Mean for Employers in Northern England?

Manager Ko Ito, Senior Immigration Consultant Danielle Barks, Associate Naureen Malik and Trainee Solicitor Amna Ali outline how the expanded UK Right to Work Scheme could affect employers in Northern England and the practical steps businesses can take ahead of the 1 October 2026 changes.

Learn more

Media mentions

Business Traveller: Six Months in, the EU’s Entry/Exit System Isn’t Working

Partner Christine Sullivan discusses the implementation of the EU’s Entry/Exit System (EES) across member states and at border crossing points.

Learn more

Fragomen news

Comment on DHS Proposed $103,265 Fee on Cap-Subject H-1B Petitions.Learn more

Awards

Fragomen Receives Three 2026 Cartus Awards

Fragomen received three recognitions at the 2026 Cartus Global Network Conference for excellence in service, sustainability leadership and global citizenship.

Learn more
Generic Insights

Blog post

Net Migration Policy: An Explainer Comparing Australia, Canada and the UK

Partner Jack (Eui Chul) Kim, Senior Counsel Dr. Anna Boucher, UK Government Affairs Strategy Director Shuyeb Muquit and Articling Student David Mucz examine how Australia, Canada and the UK measure net migration. They compare efforts to reduce migration with the need to maintain access to international talent, and explain the potential effects on employers, labor markets and economic growth.

Learn more

Media mentions

Bloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope

Partner K. Edward Raleigh discusses how US employers should consider displacement and conduct a risk analysis when assessing H-1B filings in light of recent policy changes.

Learn more

Blog post

The Compliance Risks of International Remote Working and Hush Trips

International remote working can offer valuable flexibility, but undisclosed “hush trips” may expose employers to immigration, social security, insurance, employment-law and tax risks that they cannot properly assess or manage.

Learn more

Blog post

The Narrowing Talent Pipeline: From International Student to Corporate America

Counsel Susan Steger examines recent policy changes and litigation affecting the pathway from F-1 study and practical training through H-1B sponsorship and permanent residence, and the considerations for US employers recruiting and retaining early-career international talent.

Learn more

Media mentions

The National Interest: How Boosting Your Privacy Will Make America More Secure

Managing Director, Digital Identity Amit Sharma explores how digital identity can strengthen privacy and security.

Learn more

Media mentions

CEDA: The Drive to Reduce Net Overseas Migration and the Challenges for Business

Managing Partner, Australia and New Zealand Teresa Liu discusses how Australia’s efforts to reduce net overseas migration are affecting businesses amid ongoing skilled workforce shortages.

Learn more

Media mentions

Australian Broadcasting Corporation: Overnights

Senior Counsel Dr. Anna Boucher discusses Australia’s net migration figures and recent changes to the country’s migration policies.

Learn more

Blog post

Can International Graduates in the Netherlands Qualify for the 30% Ruling? Eligibility Rules Explained

Tiemen Peters, Silvia Norte Mercade and Soraya Driessen outline when international graduates who studied in the Netherlands may qualify for the 30% ruling and the key eligibility, timing and compliance considerations for graduates and employers.

Learn more

Blog post

Right to Work Changes: What Do They Mean for Employers in Northern England?

Manager Ko Ito, Senior Immigration Consultant Danielle Barks, Associate Naureen Malik and Trainee Solicitor Amna Ali outline how the expanded UK Right to Work Scheme could affect employers in Northern England and the practical steps businesses can take ahead of the 1 October 2026 changes.

Learn more

Media mentions

Business Traveller: Six Months in, the EU’s Entry/Exit System Isn’t Working

Partner Christine Sullivan discusses the implementation of the EU’s Entry/Exit System (EES) across member states and at border crossing points.

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 23, 2026 | South AfricaSouth Africa: New Law Would Increase Locals in Labor Market
September 24, 2026Comment on DHS Proposed $103,265 Fee on Cap-Subject H-1B Petitions.
September 24, 2026 | CanadaFragomen Receives Three 2026 Cartus Awards
September 24, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
September 24, 2026 | QatarQatar: Wage Protection System Rules Amended
September 23, 2026 | South AfricaSouth Africa: New Law Would Increase Locals in Labor Market
September 24, 2026Comment on DHS Proposed $103,265 Fee on Cap-Subject H-1B Petitions.
September 24, 2026 | CanadaFragomen Receives Three 2026 Cartus Awards
September 24, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
September 24, 2026 | QatarQatar: Wage Protection System Rules Amended
September 23, 2026 | South AfricaSouth Africa: New Law Would Increase Locals in Labor Market
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.