The objective of this presentation is to get an idea how to calculate Saudization points as per new Nitaqat System specially for those who do not understand Arabic. The calculation criteria depends on the activity and size of the organization. Calculations Methodology: The best of my understanding and research and for more detail understanding please refer to the links in the next page. You can share your feedback on sharefeedback0@gmail.com

1. New Balanced Nitaqat System KSA
2016
Prepared by;
Numan Ahmad Bhatti
December 01, 2016
‫الموزون‬ ‫نطاقات‬

2. 1. Introduction to New Balance Nitaqat System 2016
2. Color Categories & Points
3. Color Categories & Benefits
4. Calculation
a) Saudization Percentage
b) Female Saudi National Percentage
c) Saudi National Retention Rate
d) Average Wage of Saudi National
e) Saudi Nationals with High Wages
5. New Balanced Nitaqat Calculator
Covered:

3. Introduction to New Balanced Nitaqat
System
2016

4. 1. New Nitaqat System 2016
1. Saudization Percentage 1% = 10 points
2. Female Saudi National Percentage 1% = 2 points
3. Saudi National Retention Rate 1 year = 4 points
4. Average Wage of Saudi National SR 1,000 = 6 points
5. Saudi National with High Wages 1% = 0.1 point
Source: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx
Introduction to
Max = 1000 points
Max = 200 points
Max = 100 points
Max = 270 points
Max = 10 points
Based on last 26 weeks
Assuming max. 25 years
Assuming max. SR 45,000/Month

5. Color Categories – Points &
Benefits

6. 2. Color Categories & Points
Platinum
Category Points
Green
Yellow
Red
High Green Medium Green Low Green
Above 175
106 - 135136 - 175
0 - 35
36 - 75
76 - 105
Source: MOL Website ; https://mlsd.gov.sa/Services/Inquiry/NitaqatPointsCalculator.aspx

7. 3. Categories & Benefits
Benefits:
• Complete freedom in hiring foreign employees.
• Freedom to renew work permits of foreign employees.
• Freedom to issue new Visas.
• Freedom to change employees profession.
• Condition-free Visa transfer.
• Freedom to hire employees from Red and Yellow zones.
• Extension of One year in case of expiration of certificates of zakat,
income or license.
PlatinumCategory
Above 175Points
Source: MOL Website: http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf

8. 3. Categories & Benefits
• Freedom to apply for new Visas
• Freedom to change foreign workers profession except those restricted
by the government.
• Freedom to renew work permits.
• Freedom to hire employees from Red and Yellow zones and transfer
their visas.
• Freedom of six months extension in case of expiration of certificates
for zakat and income, license for municipal or other activity.
• Can apply for electronic Visa request after 4 weeks from the
acceptance of MOL on the previous request.
GreenCategory
Points High Green 136 - 175
Medium
Green 106 - 135 Low Green 76 - 105
Source: MOL Website: http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf
Benefits:
Note: No separate information found related to High Green & Medium Green.

9. 3. Categories & Benefits
• Freedom to change foreign workers profession.
• Freedom to renew work permits.
• Freedom to hire employees from other employers under Red and Yellow
zones and transfer their visas.
• Freedom of six months extension in case of expiration of certificates for
zakat, income or baladia.
GreenCategory
Points High Green
Medium
Green
Low Green106 - 135136 - 175 76 - 105
Punitive
Measures:
• Can not apply for new Visa applications.
• Employee can take sponsorship transfer to the low green or below
organizations, without the approval of the current employer.
Source: MOL Website: http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf
Benefits:

10. 3. Categories & Benefits
Incentive:
• Not free to issue new Visas.
• Not free to transfer Visa and changing profession.
• Employees barred from renewing their work permit after
completing six years.
YellowCategory
36 - 75Points
Punitive
Measures:
• Free to issue One Visa after the departure of Two expatriates.
Source: MOL Website: http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf

11. 3. Categories & Benefits
Banned from:
• Changing profession.
• Transferring Visas.
• Issuing new Visas.
• Opening files for new branches.
• Renewal of work permits
RedCategory
0 - 35Points
Punitive
Measures:
Source: MOL Website: http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf

12. Calculation

13. 4a. Saudization Percentage during the last 26
weeks
Source: Example Data; Nitaqat System: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx
New Nitaqat System
Average number of Expats = 5,000
Average number of Saudis = 500
Average percentage of Saudis = 9.09%
1% = 10 points
x 10 =
Total Average number of Employees = 5500
9.09% 90.9 points

14. 4b. Female Saudi National Percentage
Total No. of Female Saudi National = 150
Total No. of Employees = 5,900
Percentage of Female Saudi National = 2.54%
New Nitaqat System
1% = 2 points
x 2 =2.54% 5.08 points
Source: Example Data; Nitaqat System: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx

15. 4c. Saudi National Retention Rate (in years)
Average Sustainability of Saudi National = 3.08
New Nitaqat System
1 year = 4 points
x 4 =3.08 12.32 points
Source: Example Data; Nitaqat System: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx

16. 4d. Average Wage of Saudi National per month
No. of Saudi Nationals = 450
Total amount of Saudi wages ( Basic+TA+HRA ) = 2,540,897
Average wage per Saudi per month= 5,646
New Nitaqat System
SR 1,000 = 6 points
x 0.006 =5646
1 Riyal = 6 ÷ 1000 = 0.006 points per SR 1
33.88 points
Source: Example Data; Nitaqat System: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx

17. 4e. Saudi Nationals with High Wages
No. of Employees = 5,900
Top 25% of total employees = 1475
Wage Frame within top 25% = 2,000 – 50,000
No. of Saudis in the top 25% = 450
Percentage of Saudi Nationals with high wages = 30.51%
New Nitaqat System
1 % = 0.1 point
x 0.1 =30.51% 3.05 points
Source: Example Data; Nitaqat System: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx

18. 5. Result as per the New Balanced Nitaqat Calculator
Source: https://www.mlsd.gov.sa/Services/Inquiry/NitaqatPointsCalculator.aspx
Arabic

19. Source: https://www.mlsd.gov.sa/Services/Inquiry/NitaqatPointsCalculator.aspx
Englis
h
5. Result as per the New Balanced Nitaqat Calculator

20. Hello Friend,
The objective of this presentation is to get an idea how to calculate Saudization points as per new
Nitaqat System specially for those who do not understand Arabic.
The calculation criteria depends on the activity and size of the organization.
Calculations Methodology: The best of my understanding and research and for more detail
understanding please refer to the links in the next page.
Note: The New Nitaqat System still not implemented.
You can share your feedback on sharefeedback0@gmail.com
Best Regards,
Numan Ahmad Bhatti

21. References / Useful Links:
MOL Website : http://nitaqat.mol.gov.sa/Pages/Default.aspx
Nitaqat Manual : http://nitaqat.mol.gov.sa/Documents/ ‫شرح‬%20‫نطاقات‬%20‫الموزون‬1. PDF
Nitaqat Detail : http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf
Nitaqat Calculator : https://www.mlsd.gov.sa/Services/Inquiry/NitaqatPointsCalculator.aspx
End