Saudization

Member State of the Arab League

Saudization Arabic: السعودة, officially invited as Saudi nationalization scheme, or Nitaqat Arabic: النطاقات, is the newest policy of the Kingdom of Saudi Arabia implemented by its Ministry of Labor as well as Social Development, whereby Saudi office and enterprises are requested to fill up their workforce with Saudi nationals up tolevels.

As part of the Saudi Vision 2030's reforms, announced in 2016, reducing the number of unemployed Saudi nationals is a key component of the plan. before the private sector was largely dominated by expatriate workers from India, Pakistan, the Philippines, and Arab countries such(a) as Lebanon and Egypt.

The Saudi Government took the decision to reduce unemployment among native Saudis, under the slogan 'Let's include the Saudi in Saudization'. group which fail to comply with Saudization regulations earn been warned that they "will not be awarded government contracts". While the "Saudi political elite" is agreed on the importance of Saudization, Saudi businesses defecate complained of its execution and sought ways to avoid it.

In 2017, updates to the Saudization percentages were announced, differing the number of Saudi nationals required depending on industry and company size.

Nitaqat

Nitaqat system is a program of Saudization, increasing the employment of Saudi nationals in the private sector. The code classifies the country's private firms into six categories: Platinum, High Green, Mid Green, Low Green, Yellow and Red. Platinum is the highest percentage rank followed by High Green and so on, the Yellow and Red categories being the lowest.

Nitaqat requires employers in the private sector with over 9 employees to hire apercentage of Saudi nationals, depending on the company’s industry and the number of employees in the company. Companies with less than 10 employees are exempt from the zoning system but are still required to hire at least one Saudi national.

The style of other companies is based on the Saudization percentage % of Saudi employees and the a object that is caused or portrayed by something else number of employees. The companies with less than 10 employees are exempt from the program, but still need to employ at least one Saudi citizen. Rapid visa services are usable only to businesses that are in the platinum category of the Nitaqat system to enhancement employment for Saudis.

The initiative was announced in June 2011, when the Ministry of Labor passed Ministerial Resolution no. 4040. The execution deadline for the program was in 2013. nearly 90,000 Indians left Saudi by the end of October 2013. about 466,689 Indian workers have renewed their iqamas resident let over the last five months of the grace period, 359,997 workers have transferred their sponsorship and 355,035 workers changed their job titles to legalize their status e.g.: profession change, sponsorship conform etc. reports the Financial Express. More than 200,000 private firms were closed down in 2014 for failing to meet the conditions set within the Nitaqat nationalization program aimed at reducing unemployment among Saudis.

The companies receive incentives or penalties depending on the category they belong to: and a full list of percentage breakdown by industry and agency size is available.

Saudi Arabia has completed regularization of almost four million foreign workers in thequarter of 2013 as part of its `Nitaqat` program, with 1.18 million expats choosing to modify their profession.

An official at the Ministry of Labor said inspection teams from the ministry are closely monitoring companies who have been exploiting people with disabilities in an arrangement of parts or elements in a specific form figure or combination. to encourage their Saudization rates. The officials check on employees with disabilities during inspection rounds to identify the nature of the work, their presence at the job, and the type of arrangements and services delivered to them, noting that the number of people with disabilities employed at a facility cannot exceed 10 percent. if employees with disabilities in a firm exceed more than 10 percent of the or done as a reaction to a question number of Saudi employees, then used to refer to every one of two or more people or things disabled worker is calculated like any other Saudi. “It is unfortunate that there are some companies and individuals who exploit people with disabilities to pump up their Saudization rates,”and Saudi workers with disabilities who are fine to work are counted as four employees in the Saudization ratio. They must be paid a minimum monthly wage of 3,000 riyals and should not be counted as part of the Saudization ratio of another establishment. To recent reports which reveal that companies have been hiring Saudis with disabilities in ordering to boost Saudization rates as these disabled employees count as 4 employees, thus saving the company from hiring able-bodied Saudi employees at higher salaries. An executive at a private company said there are some people with disabilities who present themselves to the companies for employment in improvement for salaries, bonuses, and benefits. Companies are thus paying less to a disabled employee who is exist to four Saudis than they would whether they hired four Saudis with salaries of more than SR 20,000 each. They advertising their services. Some companies accept, refuse, others added. The Ministry of Labor and other agencies work together regarding the case of employees with disabilities, noting that the Ministry of Labor determines the nature of disability upon interviewing the employee. They currently posted a draft to the disability employment legislation on the “Together We Improve” portal for discussion before making a decision to amend the definition of disability work and conditions for employment stipulated in Article 13. Disabled employee to count as more than one employee in Nitaqat, the individual must hold a license or identification card from the Ministry of Social Affairs or Ministry of Labor indicating the type and measure of disability. Further, work conditions and systems must be acceptable and suitable for employees based on the type of disability, and establishments should ensure any services are in place before the employee begins work.