BlogConsultationNitaqat – Saudization: Everything You Need To Know

January 29, 2024by admin0

Nitaqat - Saudization: Empowering Saudi Workforce Through Localization

Initiated in 2011, Saudization is a progressive effort by Saudi Arabia to enhance employment prospects for skilled nationals. Spearheaded by the Ministry of Human Resources and Social Development, this policy encourages private-sector enterprises to prioritize hiring qualified Saudi individuals. Helpline Group can assist you in understanding and fulfilling Saudization standards that are particular to your sector.

 

Understanding Nitaqat:

 

Saudization strives to enhance employment for Saudis in the private sector, promoting economic stability and local talent for a progressive future. It is a comprehensive rating system evaluating private companies’ compliance with nationalization objectives. The Nitaqat rating system classifies private companies into distinct categories based on the proportion of Saudi employees they employ. These categories are denoted by color codes, including Platinum, High Green, Medium Green, Low Green, and Red.

 

Saudization Rates: A Multifaceted Calculation:

 

The computation of Saudization rates involves variables such as Saudization Percentage, Entity Size, and Entity Classification. International companies must include Saudi nationals in their workforce early on, following specific guidelines based on company size and sector. Companies with over 100 employees must achieve a Saudization rate of at least 30%, though variations exist based on industry or license type.

HRSD Services for Each Nitaqat Range:

 

The Ministry of Human Resources and Social Development (HRSD) provides tailored services based on a company’s Nitaqat rating. These services encompass visa balance applications, work permit renewals, and more, with the extent determined by the company’s Nitaqat range.

 

Navigating the Nitaqat Red Range Challenge:

 

Entities falling into the Nitaqat Red Range encounter stringent restrictions from limitations on changing foreign employees’ occupations to being barred from opening new branches. Helpline Group offers support, assisting companies in elevating their Saudization levels and overcoming these constraints. Leave your anxieties behind; Helpline Group is here to alleviate your worries! Let us support you in enhancing and sustaining your Saudization level by providing adept Saudi national employees.

 

Factors Influencing Nitaqat Status:

 

Nitaqat status hinges on entity classification, size, and Saudization percentage. Companies must align their hiring practices with the specific requirements of their industry and business activity.

 

Entity Size Classification:

 

Entities are categorized based on the number of employees, ranging from small entities (0-5 employees) to mega entities (more than 3000 employees). Each category carries its own set of Saudization expectations.

 

Reserved Jobs: Tailoring Workforce Planning:

 

Specific roles are exclusively reserved for Saudi nationals. Recognizing and incorporating this is crucial for international businesses to customize their workforce planning and recruitment strategies accordingly.

 

Advantages of Saudization for Foreign-owned entities:

 

For foreign-owned companies, Saudization presents a distinctive opportunity for growth and integration. By investing in the right Saudi talent, businesses can unlock benefits such as improved workforce quality, access to government services, and enhanced credibility.

 

Conclusion

 

Ensure seamless company incorporation in Saudi Arabia by staying informed about Saudization mandates. Regularly assess your Saudization plan to uphold a favorable Nitaqat green status. Helpline Group offers specialized assistance in comprehending Saudization prerequisites for your business and facilitates the recruitment of skilled Saudi nationals. Maintain a green status effortlessly with our support, allowing you to concentrate on your company’s expansion. 

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