The Saudi government has set several conditions for the mobility foreign workers, between the branches of the unified number, which was launched, to achieve integration between the various government agencies.
“Saudization” is the process through which the government plans to increase employment of Saudi nationals in the Kingdom’s private sector, using the Nitaqat system to rate companies based on the numbers they employ.
Under the initiative, new Saudi employees will be counted by the Nitaqat program immediately, improving their company’s rating faster.
The Ministry provided “Nitaqat” program to calculate the rate of localization and automatically classify establishments based on their localization ratios. The highest third, according to the percentage of localization required for that classification.
The Nitaqat Program is the latest Saudization initiative for the private sector which categorises companies depending on current percentages of Saudi employees. Nitaqat requires private companies in most industries to ensure that at least 30% of employees are Saudi nationals.
The word “nitaqat” means “ranges” in Arabic, which reflects the sliding scale model for assessing Saudiization targets. Employers with fewer than ten employees are exempt from Nitaqat. Under Nitaqat, entities fall under four categories based on their current Saudization rates: Excellent (full compliance), Green (good compliance), Yellow (poor compliance) and Red (no compliance).
The program assesses the performance of enterprises in each category and rewards Excellent and Green bands with top priority, gives Red the least priority, and gives a longer deadline for enterprises in the Yellow band to increase their Saudization rates.
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