The Saudi Nationalisation Scheme, commonly referred to as Saudization or Nitaqat, represents a policy established by the Ministry of Labour with the objective of encouraging the employment of Saudi Nationals within domestic companies according to specified quotas.
Although Saudization has been a longstanding policy in effect since 1985, recent developments within the past half-decade have resulted in designated positions being exclusively reserved for Saudi Nationals.
Nitaqat Classification
Platinum
This is the most prestigious classification/rank of Nitaqat. Companies in the platinum category comprise approximately 40% of the Saudi workforce.
Green
Most private companies fall in the green category. However, they are further segregated into subcategories: High-Green, Mid-Green, and Low-Green:.
Yellow
Companies in the Yellow category have a Saudi workforce of between 4 and 7% and face many limitations and challenges in running their business smoothly.
Red
Companies in the Red category have a lower than 4% Saudi workforce and do not benefit from any perks and services the Ministry of Labour offers.
Even the smallest companies, with less than ten employees, are expected to hire at least one Saudi national.
Private sector companies that employ three or more individuals in project management roles are mandated to achieve a Saudization ratio of 35% by December 24, 2023, and increase it to 40% by December 12, 2024. Additionally, these companies must ensure that their project management professionals receive a minimum monthly salary of SAR 6,000.
Private sector companies with three or more employees engaged in specific procurement professions, the Saudization ratio must be raised to 50% by December 24, 2023.
Private sector companies with five or more employees working in designated sales professions must attain a Saudization ratio of 15% by December 24, 2023.
Women’s tailors and women’s beauty salons employing 10 or more non-Saudi workers must have at least one female Saudi employee by December 24, 2023. Note that cleaning, nail care, body care, transportation, and delivery companies are excluded from this particular requirement.
Event reservation agencies and supervisory professions in wedding halls must achieve a 100% Saudization ratio by July 19, 2023.
Advertising agencies in sales outlets, photography businesses, and computer repair businesses must meet a minimum Saudization ratio of 70% by the same date.
Specific professions such as sea attendants, ticket clerks, bookkeepers, financial clerks, and accounts assistants must achieve a 100% Saudization ratio by July 19, 2023. Marine engineers, ship safety technicians, sailors, account managers, ship traffic controllers, port controllers, maritime navigators, and maritime observers must meet a minimum Saudization ratio of 50% by January 19, 2024.
MADINA REGION: Employers in marketing and sales sectors, marketing specialists and sales representatives must meet a Saudization ratio of 40% by June 23, 2023. Cashiers, excluding those in car maintenance shops, gas stations, restaurants, cafes, plant nurseries, workshops, and sales outlets smaller than 300 square meters, must achieve a 100% ratio by the same date.
UPDATE: Marketing specialists, sales representatives, cashiers, purchase representatives, and purchase specialists must achieve a 100% Saudization ratio by July 19, 2023.
Employers in the consulting sector are expected to achieve a Saudization ratio of 35% by April 6, 2023, and further increase it to 40% by March 25, 2024.
MADINA REGION: Employers in the restaurant sector, including restaurants with service, banquet kitchens, fast-food restaurants, and juice shops, a Saudization ratio of 40% must be met by July 8, 2023. For cafes with service and ice cream shops, the ratio should be 50% by the same date. These requirements apply to stand-alone or mixed-use buildings, complexes, and closed commercial centers employing four or more workers in a shift for restaurants, and two or more workers in a shift for cafes. However, cafeterias, catering contractors, caterers, canteens, and cafeterias in factories, offices, hospitals, schools, restaurants, cafes within hotels, apartment complexes, and hotel villas are exempt from these requirements.
MADINA REGION: Employers in the wholesale food and beverages, businesses are required to achieve a Saudization ratio of 50% by July 8, 2023. However, this ratio does not include cleaning, freight, and unloading workers.
NOTE: For more information on Saudization please reach out to The Ministry of Human Resources and Social Development (MHRSD)
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