Saudi Labor Minister issues decision canceling Nitaqat yellow zone

This decision aims to stimulate firms in this zone to move to the Green Zone and above, leading to raising their Saudization percentage

  
Image used for illustrative purpose Members of the Chambers of Commerce in the Saudi capital Riyadh vote for a new president of the commercial body in rare elections November 11, 2008.

Image used for illustrative purpose Members of the Chambers of Commerce in the Saudi capital Riyadh vote for a new president of the commercial body in rare elections November 11, 2008.

REUTERS/Fahad Shadeed

RIYADH — The Minister of Labor and Social Development Eng. Ahmed Bin Sulaiman Al-Rajhi has issued a ministerial decision canceling the yellow zone in the Nitaqat Program, which is meant to stimulate the Saudization of jobs, Saudi Press Agency (SPA) said.

The reasons that led to this decision include what is stipulated by the regulation that “all firms in the yellow zone will be transferred to the Red Zone of the Nitaqat Program and the criteria for the Red Zone mentioned in the Nitaqat Program Guidebook will be implemented on these firms, effective Sunday, Jan. 26, 2020G corresponding to 01/06/1441H.”

This decision aims to stimulate firms in this zone to move to the Green Zone and above, leading to raising their Saudization percentage and providing more job opportunities to Saudi young men and women. This will in turn enable the ministry to provide its services to these firms.

It is noteworthy that the yellow and red zones are specified for firms that have failed to achieve the required Saudization percentage. They are also known as the “unsafe Nitaqat” and such firms are denied full access to the ministry’s services.

In other words, the ministry’s services are restricted to firms that are in Green Zone and above and that contribute effectively to employing Saudis. 

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