Saudization - the Saudi Nationalisation Scheme, or 'Nitaqat' - is the policy that mandates Saudi companies must hire Saudi Nationals on a percentage basis determined by what activities the business undertakes.
Essentially, Saudization is a policy to employ as much of the Saudi labour market as possible and reduce the reliance on expat workers. In short, if you're planning to set up a business in Saudi Arabia, then you will be expected to employ a significant quota of Saudi nationals in your workforce.
This is good news for women. Female Saudis are most definitely being encouraged to work now, and women have more access to civil engineering jobs and other careers in the country than ever before. KSA is focused on growth and a prosperous future, but while Vision 2030 embraces the need for overseas companies to succeed in Saudi, and compete on the global stage, they don’t want to leave Saudi nationals behind.
Saudization: Rules, Requirements, and Benefits
At AEI Saudi, we provide comprehensive Saudization services to businesses in the UK. Our team of experts will guide you through the Saudization process, helping you understand its rules, requirements, and potential benefits for your business.
In short though, you must be compliant with Nitiqat. For businesses that want to succeed here, the challenge is clear. The rules mean it's important to make sure you're hiring the right employees from day one. All industries are affected by Saudization, and the regulations are still evolving.
Understanding Nitaqat Ratings
Companies subject to Nitaqat are given a rating according to their levels of Saudization. The highest rating is Platinum, while the lowest (non-compliant) rating is Red. In between there are three levels of Green – low, medium and high.
Platinum-rated companies benefit from a number of privileges, mostly related to immigration. These include expedited processing of immigration requests and preferential treatment of quota allocations. However, lower-rated companies are restricted from hiring foreign nationals. Most businesses will have genuine integration intent, and want to maintain ‘High Green’ status - many of our clients include a strategic target to achieve Platinum status over time.
Is Saudization run by the Saudi government?
Yes, Saudization was implemented by the Ministry of Labour in 1985. More recently, many specific professions or roles have become completely exclusive for Saudi Nationals. Some junior, all very important. They includes things like human resources roles, jobs that are usually linked to with local labor affairs, some finance roles and a certain number of retail specialisms, too.
FAQs
What is Saudization?
Saudization is a policy that was created by the Saudi Arabian government to encourage the employment of Saudi nationals in the private sector.
What is a Saudization certificate?
A Saudization certificate verifies your company's compliance with Saudization rules and regulations.
What are Saudization professions?
Saudization professions are job roles that are specifically targeted for Saudization, often in sectors where there is a high proportion of expatriate workers.
What is a Saudization plan?
A Saudization plan is a strategic approach taken by businesses to meet Saudization requirements, often involving hiring and training Saudi nationals.
What are Saudization requirements?
Saudization requirements vary by sector, but generally involve a certain percentage of your company's workforce being Saudi nationals.
What happens in case of Saudization failure?
As a business trading in KSA, if you don't comply with Saudization then you may receive a penalty, fine or restriction on your business operations.
What is the meaning of Saudization?
Saudization is the strategic plan being implemented by the Saudi government to increase the participation of Saudi nationals in the workforce.
What are Saudization rules?
Saudization rules are regulations set by the Saudi government to promote employment of Saudi nationals, particularly in the private sector.
What is Saudi Arabia Saudization?
Saudi Arabia Saudization is a national policy to increase the employment of Saudi nationals, reducing reliance on expatriate workers.
What is Saudization law?
Saudization law refers to the legal framework that supports the Saudization policy, including rules and regulations for businesses.
Find out more about Saudization with AEI Saudi
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