Workforce Nationalization Compliance In Saudi Arabia Through The Nitaqat Program

The Nitaqat regime may be regarded as one of the main statutes operating in what is considered the Saudi labor market reforms, aiming at workforce nationalization by way of bestowing incentives upon employment of Saudi nationals in the private sector. The program is managed by the Ministry of Human Resources and Social Development (MHRSD), which sets forth a series of different criteria of Saudization targets depending on company size and sector for companies to be classified upon compliance or noncompliance. Unpacking the legal framework behind the Nitaqat system and its operational requirements is therefore crucial for any business operating in the Kingdom.

Overview of the Nitaqat Classification Framework