Saudi Arabia: Abolishment of the Yellow Band from the Nitaqat Program
| Saudi Arabia: Abolishment of the Yellow Band from the Nitaqat Program | |
| Title | Saudi Arabia: Ministerial decision to abolish the Yellow band |
| Date of conclusion | 26 September 2019 |
| Entry into force | 26 January 2020 |
| Text version(s) | English |
| Source | Minister of Human Resources and Social Development, |
| Issue No. 1/63717 (26 September 2019), accessed: 25 October 2022, | |
| https://hrsd.gov.sa/en/decisions | |
| Last accessed: 25 October 2022 | |
| Keywords | Saudi; Laws & Regulations; Policy |
Abstract
The Minister of Human Resources and Social Development passed an order to abolish the yellow band of the
Nitaqat Program. Under the Nitaqat program, companies in Saudi Arabia were required to hire a certain number
of local individuals to reduce the state’s unemployment rate. The companies are categorized based on their
compliance with the Nitaqat program. The higher the compliance rate, the more foreign nationals a company
can employ. The yellow band companies were near the bottom, which is red. Now, the companies in the yellow
band will be moved to the red band, and they will not be able to issue more visas for foreign nationals or renew
their work permit.