Important Updates
Important Updates
September 18, 2025 | United StatesThe PIE: US Visa Changes “Further Widening Global Equity Gap”
September 18, 2025 | Czech RepublicCzech Republic: Work Commencement Notification Timeline Tightened
September 18, 2025 | United StatesFragomen Receives Ally in Action Award from Oasis Legal Services
September 18, 2025 | IndiaIndia: New Law Simplifies Immigration Law and Creates Stricter Registration and Reporting Rules
September 18, 2025 | South AfricaSouth Africa: Electronic Travel Authorization Requirement Forthcoming
September 18, 2025 | United StatesThe PIE: US Visa Changes “Further Widening Global Equity Gap”
September 18, 2025 | Czech RepublicCzech Republic: Work Commencement Notification Timeline Tightened
September 18, 2025 | United StatesFragomen Receives Ally in Action Award from Oasis Legal Services
September 18, 2025 | IndiaIndia: New Law Simplifies Immigration Law and Creates Stricter Registration and Reporting Rules
September 18, 2025 | South AfricaSouth Africa: Electronic Travel Authorization Requirement Forthcoming
September 18, 2025 | United StatesThe PIE: US Visa Changes “Further Widening Global Equity Gap”
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 AdministrationTravel & Mobility Considerations: Situation in the Middle EastImmigration Matters: Your U.S. Compliance RoadmapHumanitarian and Evolving Legal Pathways (HELP)Vietnamese 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
  • Travel & Mobility Considerations: Situation in the Middle East
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Humanitarian and Evolving Legal Pathways (HELP)
  • 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

Awards

Fragomen Receives Ally in Action Award from Oasis Legal Services

Fragomen was recognized by Oasis Legal Services with the Ally in Action Award at their 8th Annual Community Celebration: Liberation Sounds Like Us, which took place on September 12, 2025 in Oakland, California.

Learn more

Video

Summer 2025 Highlights | #FragomenFC - Ep. 11

Fragomen FC hosts recap major international football transfers and tournaments played this summer.

Learn more

Media mentions

The PIE: US Visa Changes “Further Widening Global Equity Gap”

Partner Aaron Blumberg highlights how careful planning can help international students navigate US visa changes and avoid disruptions to study and travel.

Learn more

Media mentions

Agência Eixos: Inovação e contratação de talentos estrangeiros: o desafio do compliance em novos cenários

Managing Director Diogo Kloper examines the challenges of hiring foreign talent in Brazil’s evolving energy sector and the role of compliance in supporting innovation.

Learn more

Blog post

Skilled Worker Visa 2025: Impact on UK Aviation Roles

Manager Adam Hickling, Senior Immigration Consultant Katya Fedorenko and Paralegal Sasindie Ambawatte explore how upcoming changes to the UK's skilled worker visa scheme may affect recruitment and retention in the aviation sector.

Learn more

Media mentions

Construction Management: Crackdown on Illegal Working in Construction

Manager Kirsty Moore highlights the need for UK construction employers to maintain compliance and manage risks.

Learn more

Media mentions

Newsweek: Green Card Update: Applicants Receive Major Boost

Partner Parisa Karaahmet discusses updates in the October 2025 US visa bulletin for employment-based green card applicants.

Learn more

Video

Permanent Access Cards Replaced by Permanent Identity Cards for Golden Visa Holders in Jebel Ali Free Zone | #MobilityMinute

Afzal Amin highlights a significant update for UAE Golden Visa holders: the Jebel Ali Free Zone authorities have replaced permanent access cards with permanent identity cards.

Learn more

Blog post

Under the Microscope: How UK Care Providers Can Prepare for Home Office Compliance Checks

Manager Evan Tutton and Associate Naomi Nyamaah discuss increased Home Office scrutiny of the UK care sector, including more sponsor licence compliance checks and enforcement visits due to concerns over non-compliance and exploitation.

Learn more

Blog post

Understanding the 2025 Changes to Belgium’s Family Reunification Rules

Associate Pauline Chomel and Immigration Consultant Pebbless Agyemang discuss Belgium’s new family reunification rules and their impact on applicants.

Learn more

Media mentions

Labor Law Magazine: Travel Under Trump

Senior Associate Oliver L. Ashworth and Director David Iannella discuss recent US immigration and visa changes and what German businesses and travelers should know.

Learn more

Media mentions

The Caterer: Hospitality Employers See Visa Licences Revoked in Government Crackdown

Senior Manager Louise Senior highlights how UK hospitality employers face heightened risk as visa sponsors and why it is important for them to understand their responsibilities to avoid penalties.

Learn more

Awards

Fragomen Receives Ally in Action Award from Oasis Legal Services

Fragomen was recognized by Oasis Legal Services with the Ally in Action Award at their 8th Annual Community Celebration: Liberation Sounds Like Us, which took place on September 12, 2025 in Oakland, California.

Learn more

Video

Summer 2025 Highlights | #FragomenFC - Ep. 11

Fragomen FC hosts recap major international football transfers and tournaments played this summer.

Learn more

Media mentions

The PIE: US Visa Changes “Further Widening Global Equity Gap”

Partner Aaron Blumberg highlights how careful planning can help international students navigate US visa changes and avoid disruptions to study and travel.

Learn more

Media mentions

Agência Eixos: Inovação e contratação de talentos estrangeiros: o desafio do compliance em novos cenários

Managing Director Diogo Kloper examines the challenges of hiring foreign talent in Brazil’s evolving energy sector and the role of compliance in supporting innovation.

Learn more

Blog post

Skilled Worker Visa 2025: Impact on UK Aviation Roles

Manager Adam Hickling, Senior Immigration Consultant Katya Fedorenko and Paralegal Sasindie Ambawatte explore how upcoming changes to the UK's skilled worker visa scheme may affect recruitment and retention in the aviation sector.

Learn more

Media mentions

Construction Management: Crackdown on Illegal Working in Construction

Manager Kirsty Moore highlights the need for UK construction employers to maintain compliance and manage risks.

Learn more

Media mentions

Newsweek: Green Card Update: Applicants Receive Major Boost

Partner Parisa Karaahmet discusses updates in the October 2025 US visa bulletin for employment-based green card applicants.

Learn more

Video

Permanent Access Cards Replaced by Permanent Identity Cards for Golden Visa Holders in Jebel Ali Free Zone | #MobilityMinute

Afzal Amin highlights a significant update for UAE Golden Visa holders: the Jebel Ali Free Zone authorities have replaced permanent access cards with permanent identity cards.

Learn more

Blog post

Under the Microscope: How UK Care Providers Can Prepare for Home Office Compliance Checks

Manager Evan Tutton and Associate Naomi Nyamaah discuss increased Home Office scrutiny of the UK care sector, including more sponsor licence compliance checks and enforcement visits due to concerns over non-compliance and exploitation.

Learn more

Blog post

Understanding the 2025 Changes to Belgium’s Family Reunification Rules

Associate Pauline Chomel and Immigration Consultant Pebbless Agyemang discuss Belgium’s new family reunification rules and their impact on applicants.

Learn more

Media mentions

Labor Law Magazine: Travel Under Trump

Senior Associate Oliver L. Ashworth and Director David Iannella discuss recent US immigration and visa changes and what German businesses and travelers should know.

Learn more

Media mentions

The Caterer: Hospitality Employers See Visa Licences Revoked in Government Crackdown

Senior Manager Louise Senior highlights how UK hospitality employers face heightened risk as visa sponsors and why it is important for them to understand their responsibilities to avoid penalties.

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.