How Category Is Determined
The Nitaqat program classifies an establishment based on its Saudization ratio compared to similar establishments in the same activity and size, with higher categories granted additional benefits in visa and license quotas.
Unplanned shifts in category can occur from workforce changes not designed around an approaching periodic review date, and we recommend a light annual review to catch this early.
Regulatory Basis
This program falls under regulations issued by the Ministry of Human Resources and Social Development, which set required Saudization ratios based on activity and size.
Advance Planning for New Hiring
We recommend reviewing the impact of any new hiring plan on Nitaqat category before implementation, to avoid an unplanned shift resulting from the ratio change.
Who Benefits From This Guide
Companies planning to expand their workforce that need to assess the impact on their Nitaqat category.
Establishments facing an unplanned category shift that need quick resolution.
We help these establishments under our Saudization and Nitaqat compliance service, and connect that with a parallel review under our employment contracts service for any new hiring plan.
Common Questions
How does Nitaqat category affect hiring foreign employees?
Nitaqat category determines the visa and license quotas available to the company, and we recommend periodic review before any expansion.
What do we do if our category drops unexpectedly?
We review the reasons for this shift and assess options available to address it, whether through adjusting the Saudization ratio or other procedures.
Practical Takeaway
Nitaqat category isn't fixed, and deserves periodic review tied to any new hiring plan before implementation.
Advance planning is far cheaper than addressing an unplanned category shift after it's already occurred.