Important Updates
Important Updates
April 1, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
April 2, 2026 | CanadaCanada: New Recruitment Requirements for Low‑Wage Positions under Temporary Foreign Worker Program
April 1, 2026 | United StatesBloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers
April 1, 2026 | CanadaCanada: Permanent Residence and Citizenship Filing Fees Increased
April 1, 2026 | United KingdomCare Talk Business: What the Casey Commission Means for Social Care’s Workforce
April 1, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
April 2, 2026 | CanadaCanada: New Recruitment Requirements for Low‑Wage Positions under Temporary Foreign Worker Program
April 1, 2026 | United StatesBloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers
April 1, 2026 | CanadaCanada: Permanent Residence and Citizenship Filing Fees Increased
April 1, 2026 | United KingdomCare Talk Business: What the Casey Commission Means for Social Care’s Workforce
April 1, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
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
    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 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

  • 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
  • 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

Reforms to Nitaqat Program Forthcoming

June 29, 2021

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 Human Resources and Social Development published further changes to the Nitaqat program, effective December 1, 2021.
  • The changes include a new three-year Saudization plan, consolidation of economic activity categories, and implementation of a new company classification system.
  • These changes are expected to improve the performance of the labor market, provide job opportunities and create a more regulated work environment.

The situation

The Ministry of Human Resources and Social Development (MHRSD) published further changes to the Nitaqat program, effective December 1, 2021.

A closer look

Details of the published changes are as follows:

 

CHANGE CURRENT RULE IMPACT
  • Saudization plan. A fixed three-year Saudization plan will be introduced to increase the Saudization rates gradually on a yearly basis.

Currently, Saudization ratios are adjusted on an ad hoc basis.

Employers will be better able to plan and recruit for their workforce as they will not have to adjust to rapidly-changing Saudization ratios without advance notice.

  • Consolidation of categories. Select small economic activities (based on the business sector in which the company operates) will be combined to create one larger economic activity, which will result in 32 economic activity categories. For example, pharmacies, laboratories, health services and medicine agents will become “health services”. 

Currently, there are 85 existing economic activities. 

With a smaller group of economic activity categories, companies will be better able to categorize their business sector when calculating their Nitaqat tier rating.

  • New company classification system. A new system will be introduced to classify employers based on a proportional relationship between the company’s headcount and the required Saudization ratio. The color-coded tier level that classifies which companies are compliant with Saudization ratios (i.e., red, low-green, medium-green, high-green and platinum) and grants benefits within the immigration system based on these levels, will remain in place.

Currently, Saudization rates are prescribed based on company size.

This will allow the Saudization rate to increase gradually and proportionally with respect to the company’s headcount, instead of rising dramatically when the company becomes subject to a larger headcount tier group (for example, going from 199 to 200 employees, with 200 being the lower threshold for a new category).

Background

  • Determination for Saudization ratios. A special formula is used to determine the company’s Saudization ratio in all color-coded tier levels, which includes a fixed Saudization number and additional annual numbers for the number of years after the company has begun operations in Saudi Arabia, along with a logarithm of the total workforce. The MHRSD prescribes Saudization values for each economic activity and for each color-coded Nitaqat tier level.
  • Nitaqat tier level. Based on a company's color-coded Nitaqat tier level, employers become eligible to obtain block visas to recruit foreign nationals, to renew work permits and amend employees’ job titles, among other benefits.
  • Labor market strategy. The changes are part of the Saudi government’s current labor market strategy, which seeks to increase market efficiency and provide over 340,000 new jobs for Saudi nationals by 2024.

Looking ahead

The Saudi government is likely to introduce additional reforms that align with its Vision 2030, a strategic plan to diversify Saudi Arabia’s economy and attract investment and business to the country. The government is also considering other legislative reforms including:

  • changes to the Premium Residency Card Program, which has opened a path for retirement in Saudi Arabia; and
  • NEOM – a cross-border city that is expected to be built by 2025, which will connect Saudi Arabia with neighboring countries and serve as an innovation incubator, tourist destination and a model of sustainable and data-driven living for the world.

Fragomen will report on these and other related developments.

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

Work authorization

EU Entry/Exit System (EES) and Schengen Overstays: New Risks and Legal Solutions

Senior Associate Tugba Ozyakup and Senior Immigration Manager Andreia Ghimis explore how the EU’s Entry/Exit System is reshaping Schengen overstay enforcement, the risks facing travellers and employers and the legal remedies available to challenge or prevent adverse outcomes.

Learn more

Video

Welcome to the Great White North—Immigration Behind the Beautiful Game | #FragomenFC - Ep. 16

Partner Rick Lamanna, Senior Associate Jake Paul Minster and Senior Manager Sergio Flores discuss Canada’s entry requirements for the 2026 FIFA World Cup, including visa-required and visa-exempt nationals, visitor entry rules and key planning considerations for fans, teams, media and volunteers.

Learn more

Media mentions

Bloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers

Partner Kevin Miner discusses the DOL’s proposed H-1B wage rule and its potential to add significant unplanned costs for US employers.

Learn more

Media mentions

Care Talk Business: What the Casey Commission Means for Social Care’s Workforce

Manager Asif Hanif, Senior Immigration Consultant Georgia Marshall and Immigration Consultant Inderjit Kaur examine how the Casey Commission could reshape workforce models, immigration policy and international recruitment in UK adult social care.

Learn more

Video

Staatsangehörigkeit Allgemein | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key pathways to German citizenship, including descent-based eligibility and standard naturalization requirements and outlines important considerations for individuals exploring their options.

Learn more

Media mentions

The Caterer: How to Safeguard Your Sponsor Licences

Senior Manager Louise Senior outlines key compliance considerations for UK hospitality sponsors as regulatory expectations continue to evolve.

Learn more

Media mentions

Times of India: US Proposes Sharp Hike in H-1B, PERM Wage Thresholds; May Adversely Impact Entry-Level Hiring

Senior Counsel Mitch Wexler said proposed H-1B and PERM wage increases could raise hiring costs and apply only to new and pending applications.

Learn more

Work authorization

Falling Demand, Rising Fees: Reassessing the UK’s 2026 Immigration Policy

UK Government Affairs Strategy Director Shuyeb Muquit explores the latest UK immigration fee increases and their wider implications for migration trends, labour supply and workforce planning.

Learn more

Video

FIFA Pass for the 2026 World Cup | #MobilityMinute

Partner Karine Wenger outlines US visa considerations for the 2026 FIFA World Cup, including the FIFA Pass priority scheduling system and the importance of early planning.

Learn more

Media mentions

RNZ Asia: Immigration Experts Divided Over Skilled Migrant Residency Reform

Business Immigration Supervisor Fiona Zhou says the restructured Skilled Migrant Category creates clearer pathways and retains skilled workers.

Learn more

Video

Navigating Outbound Services from Germany | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key considerations for managing outbound assignments from Germany, including planning, visa requirements and coordinated global support. 

Learn more

Video

Post-Graduation Work Permit (PGWP) | Staying in Canada Post-Graduation

Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).

Learn more

Work authorization

EU Entry/Exit System (EES) and Schengen Overstays: New Risks and Legal Solutions

Senior Associate Tugba Ozyakup and Senior Immigration Manager Andreia Ghimis explore how the EU’s Entry/Exit System is reshaping Schengen overstay enforcement, the risks facing travellers and employers and the legal remedies available to challenge or prevent adverse outcomes.

Learn more

Video

Welcome to the Great White North—Immigration Behind the Beautiful Game | #FragomenFC - Ep. 16

Partner Rick Lamanna, Senior Associate Jake Paul Minster and Senior Manager Sergio Flores discuss Canada’s entry requirements for the 2026 FIFA World Cup, including visa-required and visa-exempt nationals, visitor entry rules and key planning considerations for fans, teams, media and volunteers.

Learn more

Media mentions

Bloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers

Partner Kevin Miner discusses the DOL’s proposed H-1B wage rule and its potential to add significant unplanned costs for US employers.

Learn more

Media mentions

Care Talk Business: What the Casey Commission Means for Social Care’s Workforce

Manager Asif Hanif, Senior Immigration Consultant Georgia Marshall and Immigration Consultant Inderjit Kaur examine how the Casey Commission could reshape workforce models, immigration policy and international recruitment in UK adult social care.

Learn more

Video

Staatsangehörigkeit Allgemein | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key pathways to German citizenship, including descent-based eligibility and standard naturalization requirements and outlines important considerations for individuals exploring their options.

Learn more

Media mentions

The Caterer: How to Safeguard Your Sponsor Licences

Senior Manager Louise Senior outlines key compliance considerations for UK hospitality sponsors as regulatory expectations continue to evolve.

Learn more

Media mentions

Times of India: US Proposes Sharp Hike in H-1B, PERM Wage Thresholds; May Adversely Impact Entry-Level Hiring

Senior Counsel Mitch Wexler said proposed H-1B and PERM wage increases could raise hiring costs and apply only to new and pending applications.

Learn more

Work authorization

Falling Demand, Rising Fees: Reassessing the UK’s 2026 Immigration Policy

UK Government Affairs Strategy Director Shuyeb Muquit explores the latest UK immigration fee increases and their wider implications for migration trends, labour supply and workforce planning.

Learn more

Video

FIFA Pass for the 2026 World Cup | #MobilityMinute

Partner Karine Wenger outlines US visa considerations for the 2026 FIFA World Cup, including the FIFA Pass priority scheduling system and the importance of early planning.

Learn more

Media mentions

RNZ Asia: Immigration Experts Divided Over Skilled Migrant Residency Reform

Business Immigration Supervisor Fiona Zhou says the restructured Skilled Migrant Category creates clearer pathways and retains skilled workers.

Learn more

Video

Navigating Outbound Services from Germany | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key considerations for managing outbound assignments from Germany, including planning, visa requirements and coordinated global support. 

Learn more

Video

Post-Graduation Work Permit (PGWP) | Staying in Canada Post-Graduation

Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).

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
  • 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
  • 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.