Saudization

Saudization (Arabic: السعودة), officially known as Saudi nationalization scheme, or Nitaqat (النطاقات), is the newest policy of the Kingdom of Saudi Arabia implemented by its Ministry of Labor, whereby Saudi companies and enterprises are required to fill up their workforce with Saudi nationals up to certain levels.While many Saudi native men found employment with the government, there were not enough government jobs as over 65% of the population is of working age. 'Saudization' the workforce has been a goal of the kingdom since at least the Fourth Development Plan (1985-1989) which called for replacing foreign workers with Saudi natives as one of its objectives. Immigration was tightened and many undocumented foreign workers were deported, but the program was only a marginal success.For companies in Saudi Arabia, there are a number of challenges with implementing Saudization. Firstly, there are a lack of recruitment companies specializing in Saudi talent so when it comes to hiring for a role and going through the Nitaqat process, companies don't have the knowledge or the support they require. Nitaqat is a program of Saudization, increasing the employment of Saudi nationals in the private sector. The program classifies the country's private firms into six categories: Platinum, High Green, Mid Green, Low Green, Yellow and Red. Platinum is the highest percentage category followed by High Green and so on, the Yellow and Red categories being the lowest.