Important Updates
Important Updates
December 1, 2025 | CanadaCanada: 2026 International Student Cap and Allocations Announced
December 2, 2025 | United StatesBloomberg Law: Labor Department Expands H-1B Oversight, Tests Enforcement Power
December 2, 2025 | United KingdomLeading Britain's Conversation: Is Settlement Reform Rewarding Contribution or Rewriting the Rules of Fairness and Trust?
December 2, 2025 | MalaysiaMalaysia: Mandatory Pass Validity Period Shortening and Exit Clearance Requirement Implemented
December 2, 2025 | 🌐Minimum Salary Changes Announced
December 1, 2025 | CanadaCanada: 2026 International Student Cap and Allocations Announced
December 2, 2025 | United StatesBloomberg Law: Labor Department Expands H-1B Oversight, Tests Enforcement Power
December 2, 2025 | United KingdomLeading Britain's Conversation: Is Settlement Reform Rewarding Contribution or Rewriting the Rules of Fairness and Trust?
December 2, 2025 | MalaysiaMalaysia: Mandatory Pass Validity Period Shortening and Exit Clearance Requirement Implemented
December 2, 2025 | 🌐Minimum Salary Changes Announced
December 1, 2025 | CanadaCanada: 2026 International Student Cap and Allocations Announced
Subscribe
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
    Navigating Immigration Under the Second Trump AdministrationFragomen Consulting EuropeImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView 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

  • Navigating Immigration Under the Second Trump Administration
  • Fragomen Consulting Europe
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • 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
  • 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

Media mentions

Bloomberg Law: Labor Department Expands H-1B Oversight, Tests Enforcement Power

Partner K. Edward Raleigh explains that the Department of Labor’s Project Firewall expands H-1B oversight beyond individual complaints and increases the scope of employer compliance reviews.

Learn more

Media mentions

Leading Britain's Conversation: Is Settlement Reform Rewarding Contribution or Rewriting the Rules of Fairness and Trust?

UK Government Affairs Strategy Director Shuyeb Muquit examines how proposed settlement reforms could reshape the path to UK residency by extending qualifying periods and linking eligibility to individual contribution.

Learn more

Podcast

Canada's Healthcare Staffing Solution

Partner Cosmina Morariu and Business Immigration Manager Ayana Ibrahimi discuss critical immigration strategies underpinning healthcare-sector staffing in Canada, unpacking how recent policy, mobility and compliance developments are affecting employers and global talent pipelines.

Learn more

Awards

Fragomen Named Private Client Team of the Year at The British Legal Awards 2025

Fragomen named Private Client Team of the Year at The British Legal Awards 2025, recognising the strength of our UK Private Client practice.

Learn more

Media mentions

Global Mobility Lawyer: Rising Immigration Fraud Creates New Compliance Challenges for US Firms

Partner Daniel Brown highlights rising deceptive practices in immigration and emphasizes stronger verification and compliance measures for employers.

Learn more

Media mentions

The Caterer: Casual Staff to Come Under New Right to Work Check Legislation

Senior Manager Louise Senior highlights how proposed UK reforms could expand right to work checks across hospitality and reshape compliance for businesses.

Learn more

Video

Vuvuzelas, Visas and Victory - Moving Football Across Africa | #FragomenFC - Ep. 12

Rick Lamanna, Jake Paul Minster and Lunga Mani discuss Africa’s path to the 2026 World Cup.

Learn more

Media mentions

Bloomberg: UK to Create New Fast-Track Residency Path for High-Earners

Partner Louise Haycock notes that the UK’s new fast-track residency route for high earners could affect how businesses plan for immigration costs.

Learn more

Blog post

Georgia Immigration Reform 2025: New Residence Permit Scrutiny for Foreign Nationals

Senior Manager Zaur Gasimov outlines Georgia’s stricter residence-permit requirements and enhanced monitoring measures introduced under the country’s 2025 immigration reforms.

Learn more

Media mentions

Times Higher Education: Hertfordshire Latest to Be Placed on Student Visa ‘Action Plan’

Senior Manager Jonathan Hill explains why more UK universities are on UKVI student visa action plans and how extended timeframes help them address compliance issues.

Learn more

Media mentions

Gazeta Prawna: Cyfrowy odwrót. Wojewodowie chcą odzyskać kontrolę nad kolejkami

Partner Karolina Schiffter explains why Poland has paused online residence permit bookings and returned to paper-based submissions.

Learn more

Blog post

Swiss Immigration Quotas for 2026: What Employers and Workers Need to Know

Senior Manager Ana Bessa Santos outlines Switzerland’s 2026 immigration quotas and what employers should expect across non-EU/EFTA, EU/EFTA and UK permit categories.

Learn more

Media mentions

Bloomberg Law: Labor Department Expands H-1B Oversight, Tests Enforcement Power

Partner K. Edward Raleigh explains that the Department of Labor’s Project Firewall expands H-1B oversight beyond individual complaints and increases the scope of employer compliance reviews.

Learn more

Media mentions

Leading Britain's Conversation: Is Settlement Reform Rewarding Contribution or Rewriting the Rules of Fairness and Trust?

UK Government Affairs Strategy Director Shuyeb Muquit examines how proposed settlement reforms could reshape the path to UK residency by extending qualifying periods and linking eligibility to individual contribution.

Learn more

Podcast

Canada's Healthcare Staffing Solution

Partner Cosmina Morariu and Business Immigration Manager Ayana Ibrahimi discuss critical immigration strategies underpinning healthcare-sector staffing in Canada, unpacking how recent policy, mobility and compliance developments are affecting employers and global talent pipelines.

Learn more

Awards

Fragomen Named Private Client Team of the Year at The British Legal Awards 2025

Fragomen named Private Client Team of the Year at The British Legal Awards 2025, recognising the strength of our UK Private Client practice.

Learn more

Media mentions

Global Mobility Lawyer: Rising Immigration Fraud Creates New Compliance Challenges for US Firms

Partner Daniel Brown highlights rising deceptive practices in immigration and emphasizes stronger verification and compliance measures for employers.

Learn more

Media mentions

The Caterer: Casual Staff to Come Under New Right to Work Check Legislation

Senior Manager Louise Senior highlights how proposed UK reforms could expand right to work checks across hospitality and reshape compliance for businesses.

Learn more

Video

Vuvuzelas, Visas and Victory - Moving Football Across Africa | #FragomenFC - Ep. 12

Rick Lamanna, Jake Paul Minster and Lunga Mani discuss Africa’s path to the 2026 World Cup.

Learn more

Media mentions

Bloomberg: UK to Create New Fast-Track Residency Path for High-Earners

Partner Louise Haycock notes that the UK’s new fast-track residency route for high earners could affect how businesses plan for immigration costs.

Learn more

Blog post

Georgia Immigration Reform 2025: New Residence Permit Scrutiny for Foreign Nationals

Senior Manager Zaur Gasimov outlines Georgia’s stricter residence-permit requirements and enhanced monitoring measures introduced under the country’s 2025 immigration reforms.

Learn more

Media mentions

Times Higher Education: Hertfordshire Latest to Be Placed on Student Visa ‘Action Plan’

Senior Manager Jonathan Hill explains why more UK universities are on UKVI student visa action plans and how extended timeframes help them address compliance issues.

Learn more

Media mentions

Gazeta Prawna: Cyfrowy odwrót. Wojewodowie chcą odzyskać kontrolę nad kolejkami

Partner Karolina Schiffter explains why Poland has paused online residence permit bookings and returned to paper-based submissions.

Learn more

Blog post

Swiss Immigration Quotas for 2026: What Employers and Workers Need to Know

Senior Manager Ana Bessa Santos outlines Switzerland’s 2026 immigration quotas and what employers should expect across non-EU/EFTA, EU/EFTA and UK permit categories.

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.