Saudi Arabia has recently amended Saudization percentages in the Nitaqat system, which governs the required amount of Saudi nationals in the workforce. Higher ranked entities are rewarded with certain sponsorship privileges and eased immigration requirements. Large IT companies and large financial establishments are now subject to increased Saudization percentages.
Large IT companies must maintain a Saudization figure of 55% - 59% to be classified as “Medium Green.” Previously, they only had to meet a Saudization percentage of 35% - 39%. Large financial establishments must maintain a Saudization figure of 88% to be classified as “Medium Green.” Previously, they were only required to maintain a Saudization figure of 73% - 80%.
New categories include agricultural and animal production, Mosque construction companies, centers for people with disabilities, health facilities and pilgrim transportation companies, among others.
What This Means for Employers and Foreign Nationals
Employers operating in Saudi Arabia should ensure that they adhere to the applicable Saudization requirements so they do not face sponsorship restrictions or other administrative sanctions.
This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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