Saudization, also referred to as Nitaqat, is a Saudi government policy that seeks to enhance the hiring of Saudi nationals in the private sector.
Additionally, Saudization for companies starting in Saudi Arabia is a government program in that aims to increase the employment of Saudi nationals in the private sector. Foreign companies opening in Saudi Arabia are required to comply with the Saudization requirements, which vary depending on the industry and the size of the company.
The Nitaqat program categorizes businesses into various categories (Platinum, Green, Yellow, and Red) according to their Saudization levels.
– Platinum: Businesses with the highest proportion of Saudi workers, with maximum benefits.
– Green: Saudized companies with medium Saudization, benefiting to some extent.
– Yellow: Low Saudization companies, subject to restrictions.
– Red: Low or zero Saudization companies, subject to severe penalties and limitations.
Here are some key considerations for Saudization for foreign companies opening in Saudi Arabia:
There are a number of ways for foreign companies can comply with the Saudization requirements. Below are some of the requirements:
By understanding the key considerations for Saudization, foreign companies can comply with the requirements and avoid penalties.
For businesses commencing operations in Saudi Arabia, Saudization compliance is essential for enduring success. Strategizing a quality workforce blend, investing in Saudi talent cultivation, and remaining current with changing regulations can make businesses succeed while abiding by national employment guidelines.
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Also Read: How to register as a supplier or vendor with NEOM in KSA?
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