Key Saudization Considerations For Foreign Businesses

Learn more about the Saudization requirements for foreign businesses, including quotas, hiring timelines, and fully nationalized roles to ensure compliance with Saudi labor laws.

International companies compliant with Saudization, also known as the Nitaqat program, can gain various incentives, including preferential treatment when bidding or tendering for government projects. This ultimately enables companies to run their businesses smoothly while adhering to Saudi labor laws.

Saudization is a national scheme implemented by the Ministry of Labor that is in line with Vision 2030's objectives, which are to develop local talent and reduce dependency on foreign labor. This policy requires companies to hire Saudi nationals based on a specific quota system that varies based on the company size and the industry in which it operates

When Do Companies Need to Hire the First Saudi National?

Renewing the iqama after the allowance period

In order to renew the general manager's or any employee’s Iqama, a business needs to hire a Saudi national to comply with the predetermined Saudization ratio.

Bidding for a project in Saudi

When participating in a tender for a public or private sector, obtaining a Saudization certificate is typically required. This certificate can’t be issued without hiring a Saudi national.

When the allowance period ends

A business will be obliged to maintain a Saudization certificate once the allowance period has ended to meet primary Saudi Arabia’s business compliance requirements in line with the Ministry of Labour portal’s regulations (Qiwa).

Requiring more visa quotas

A business will need to increase and maintain its Saudization ratio to unlock more visa quotas, recruit employees, and obtain the visas as per the requirements of the MoL portal (Qiwa).

Examples of Roles that Are Fully Nationalized in Saudi Arabia

Administrative and HR roles

  • Director of Personnel Relations
  • Executive HR Manager
  • HR Manager
  • HR Executive
  • Payroll Officer

Retail Sales and Procurement

  • Sales Representatives in Malls
  • Cashiers
  • Procurement Officer

Tourism and Hospitality

  • Tourist Program Designer
  • Front Office Supervisor
  • Room Service Supervisor

Security and Safety

  • Safety and Security Officer
  • Security Guard
  • Maintenance Supervisor

Read more about Saudization here.

Looking to hire your Saudi team? Get in touch with AstroLabs today to fulfil your Saudization needs and hire the best in Saudi Arabia.

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