Saudization and its Impact on Companies

Saudization officially known as the Saudi Nationalization Scheme or Nitaqat is a policy implemented by the Ministry of Labor, whereby Saudi companies are required to hire Saudi Nationals on a quota basis. Saudization was implemented in 2011 when the need for increasing the number of Saudi nationals in private and public sector jobs arose.

Companies under Nitaqat are color-coded according to their levels of Saudization, with the highest rating being platinum and the lowest being red. Platinum-rated companies are afforded many immigration-related privileges such as expedited processing of immigration requests and preferential treatment of quota allocations.

Aside from various initiatives introduced to invest and grow the local workforce, the kingdom also intends to drive investment into the country. By diversifying beyond oil, the economy will get boosted by commitments to other sectors including manufacturing, education, and tourism. The smart city of Neom which is intended to be an international hub for trade, innovation, and knowledge as well as promote tourism in the kingdom is another?project to diversify the economy and create more than 380,000 jobs in the country.

If you want to learn more about the process of expanding your business in the kingdom or simply learn about the opportunities in KSA, call us on +9712 622 5503 or check out our website www.blackpearlconsult.com. We can provide in-depth guidance to all your?queries through our experience in working with numerous government entities in the country.