Royal prince Mohammad Bin Fahd School

Labor Relation& Ethical Concern

HRMT- 4334

Sec. 201

Name: Nouf Alhooti

ID# 201002281

Theme: Saudiaziation


is the national policy of Arab saudi to motivate employment of Saudi excellent in the private sector, which will, as of 2006, was largely dominated by simply expatriate staff from Southeast Asia also to a lesser degree with western expatriates. As of 2004, the program had hit with little success. The Saudi government has enacted guidelines to promote Saudization, including warnings that " companies which will fail to abide by Saudization restrictions will not be awarded government contracts". Since 2005, the target Saudization rate has become set for 75% to get the exclusive sector, in most sectors the actual rates are still reduced In 06 2006, negotiations between organization executives and senior federal government leaders, which includes King Abdullah, led to reductions of Saudization targets in a few work areas from 30 percent to 10 percent, and total waivers coming from Saudization when it comes to two Oriental companies, in accordance to discussion posts between ALL OF US ambassador Adam C. Oberwetter and Saudi executives. As of April 2009, it was reported that a Saudi campaign seeks to reduce the number of foreign staff member Nitaqat (" ranges" or " zones" ):

Is a Saudization program introduced by the Saudi Ministry of Labour. The initiative was announced in June 2011, when the Ministry of Work passed Ministerial Resolution number (4040). The implementation deadline for this software was in 2013. The program classifies the country's private firms into several categories: High quality, Green, Yellowish and Reddish. Premium and Green types include the businesses with substantial Saudization rates, while Yellow and Reddish colored include the kinds with low rates. The classification of other companies will be based upon the Saudization percentage (% of Saudi employees) plus the total number of employees. The businesses with below 10 workers are not impacted by the program, but nonetheless need to make use of at least one Saudi citizen. Total no . of employees

Saudization percentage





twelve – forty-nine

0 – 4%

your five – 9%

10 – 39%

≥ 40%

40 – 499

0 – 5%

six – 11%

12 – 39%

≥ 40%

five-hundred – two, 999

0 – 6%

7 – 11%

doze – 39%

≥ 40%

3, 000+

0 – 6%

several – 11%

12 – 39%

≥ 40%

The firms receive incentives or fees and penalties depending on the category they are part of:[9] Premium-category companies (VIP)

Can sponsor foreign workers using much easier visa control

Recruit employees from the Red and Yellow category companies and transfer their visas with no their employer's permission Get a one-year grace period when ever their permit or signups expire Copy the visas of potential employees from all other companies, even though the employee hasn't completed two years with the first employer Green-category companies (excellent compliance)

Apply for new visas once every 8 weeks

Get employees from the Red- and Yellow-category corporations and copy their kompakti?kas without all their employer's agreement Change the professions of their international employees (except for positions restricted to the Saudi citizens) Get a six-month grace period when their particular certificates run out Renew function permits of foreign staff, whose kompakti?kas are valid for three a few months or more Yellowish category firms (poor compliance)

Simply cannot get new visas, nevertheless can get a single visa only if two international employees depart Cannot transfer visas

Cannot prevent Green- or Premium-category firms from transferring their employees' visas Red-category companies ( non-compliance )

Simply cannot get fresh visas

Cannot transfer visas

Cannot quit Green- or Premium-category corporations from moving their employees' visas Cannot renew employees' work permits

Simply cannot change employees' professions

Cannot open up new branches or services

You will discover modification manufactured in Nitaqat system and there are nine new areas added in the...

References:§ion=0&article=41738&d=23&m=3&y=2004[dead link]§ion=0&article=58992&d=15&m=2&y=2005[dead link]

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Saudization being a Solution to get Unemployment: The situation of Jeddah Western Place by Manal Soliman Fakeeh. University of Glasgow, May possibly 2009.


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