ANNOUNCEMENT 10 Sep 2011

In September 2011, the government of Saudi Arabia announced a change for the labour market access of foreign workers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Arab News. (2011). Labor Ministry outlines Saudization percentage. Available at http://www.arabnews.com/saudiarabia/article454198.ece

Arab News. (2011). Nitaqat a boon for Saudi job seekers. Available at http://www.arabnews.com/saudiarabia/article492322.ece

Economist Intelligence Unit. (16 July 2011). Regulatory watch: Saudi Arabia.

Economist Intelligence Unit. (1 May 2011). Regulatory watch: Saudi Arabia.

People Move (World Bank blog). (2011). Implications of 'Nitaqat', Saudi Arabia's Indigenization Program, Likely to be Modest for Migrants. Available at http://blogs.worldbank.org/peoplemove/implications-of-%E2%80%9Cnitaqat%E2%80%9D-saudi-arabias-indigenization-program-likely-to-be-modest-for-migrants

Details on http://www.mol.gov.sa/


Inception date: 10 Sep 2011 | Removal date: open ended
Still in force

Labour market access

On 10 September 2011, the second phase of the Nitaqat Program for a "Saudization" of the labor force came into force.
 
The regulation establishes minimum shares reserved for Saudi citizens in a company's labor force. The requirements range from 6 percent in construction, over 19 percent in media, to 49 percent in banking.
 
In order to raise the share of Saudi citizens in the labor force rapidly, firms have been put into four categories subject to different demands.
 
These are:

  • Red. The share of foreign workers in the firm's labor force is deemed too high. Firms in this category have until 26 November 2011 to increase their domestic labor force share or visas of its foreign workers will not be renewed.
  • Yellow. The share of foreign workers in the firm's labor force is deemed too high. Firms in this category have until 23 February 2012 to increase their domestic labor force. Visas of its foreign workers will not be extended beyond six years.
  • Green. These firms show a high degree of "Saudization". They are allowed to hire foreign workers from red and yellow firms.
  • Blue or VIP. Firms in this category are not subject to any restrictions on foreign hiring.

 
Pharmacists, goldsmiths and jewelers have been excluded from the described regulation.
 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A