What is Nitaqat Law of Saudi Arabia? In order to reduce the unemployment rate among the Saudi citizens, the Saudi government issued a new system for the localization of jobs in Saudi Arabia under the name of “Nitaqat”. The new system replaces the system applied since 1994 under the name of “The Saudization”. The basic principal of the Saudization system was the requirement to appoint certain percentage of the total workforce of all the establishments existing in the Kingdom from the Saudi citizens. This percentage varies in accordance to the activity of the establishment. Generally the percentage was fixed by 30%. However, due to several reasons, the system did not achieve the desired objectives and mostly the 30% has not been reached. Now, more than 6.5 million non-Saudi are working in the private sector of the Kingdom compared to 700 thousand Saudis. In addition, more than 2 million work visas were issued during the preceding two (2) years. Thus under the new Nitaqat system, companies will be labelled as “blue or premium”, “green”, “yellow”, or “red” depending on the level of Saudi workers in them to comply with established workers. It assigns different nationalization rates according to the size and activity of companies, so smaller companies have smaller overall quota requirements than larger ones do.........
Posted on: Thu, 06 Jun 2013 09:19:36 +0000
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