Ministry of Labor and Social Development in the kingdom of Saudi Arabia have ceased aroun 1 Million establishments due to violations of Saudi regulations because of Nitaqat in Red.
Learn More about Nitaqat System in Saudi Arabia
In the year 2016 it was 0.75 Million establishments which were removed from operations and 0.25 million were in risk according to the Saudization Law.
Nitaqat system in Saudi was created to motivate companies in the kingdom where 10 employees were Saudi to recruit more Saudis. Low Saudi in the companies will have low Saudization rate and will be in red & yellow color based on the Nitaqat system.
Higher Saudization rate will be in Green and Platinum colors.
Nitaqat system is totally based on the number of total employess and no of Saudi employees working in it.
Small enterprises where 9 or less employees will have a different classification and they can only have only 1 Saudi Employee. This is just to eradicate expatriates and employ more Saudi’s in every company and a step towards Saudization Vision 2030.