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KSA applies grace period for Nitaqat red companies

by CW Staff on Jan 18, 2012

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Companies in the Nitaqat Red category have three months to pull their socks up.Photo: Getty

The Saudi Arabian General Investment Authority (SAGIA) says that companies which fail to meet Saudisation targets will have to sign an undertaking to ensure they continue to receive the authority’s services, at least for the short-term.

The Saudisation, or Nitaqat, program requires private companies to hire a given percentage of Saudis within their companies. The quota varies depending on the company activity, and companies are dividied into categories: excellent, green, yellow and red categories based on the level of their Saudi workers.

SAGIA will now require companies that are still in the red category to sign an agreement stipulating that they will change. Companies still in the red must contact their nearest SAGIA office to receive a warning letter which will also give them a three month grace period to fulfil their Saudisation targets.

SAGIA has warned that companies that fail to do so will face severe consequences

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