Monday, March 18, 2024
Under Nitaqat, Foreign Investors to be treated as Saudis
Foreign investors (business owners) can now be officially recognized as Saudi nationals under the Nitaqat Saudization program, according to the Saudi Ministry of Human Resources and Social Development. Trending : Saudi Arabia hosts Iftar at several countries
This is one of the clauses regarding the categorization of groups that would be considered equivalent to Saudis when determining the percentage of Saudization, as reported by the ministry's associated Qiwa platform.
The platform made it clear that the Nitaqat program treats two groups of non-Saudis as Saudis. The children of Saudi citizens who are mothers or widows of non-Saudi nationals are also considered citizens. Employees from Saudi Arabia who work remotely will receive the same benefits as their in-office counterparts.
The Qiwa platform also disclosed that Gulf nationals, employees from displaced tribes, and Gulf players or athletes will be treated as equal to Saudi nationals, while calculating percentage.
- The Qiwa made it clear that while determining the percentage of Saudization, some expatriates will be calculated in fewer numbers. They comprise only 0.25 times the typical percentage of expatriate workers, as well as Palestinians with Egyptian passports and Baluchis. Most Viewed : Repeating Umrah during Ramadan is prohibited
- As long as the percentage of Palestinians and other non-Saudis employed does not exceed 50% of the total, then employing four of them will be the same as employing one non-Saudi for determining Nitaqat. The rule will be applied uniformly across the Kingdom to individuals from Myanmar or Burmese, with a calculation rate of 0.25 times the regular percentage of expatriate workers. Nevertheless, this does not apply to Burmese nationals residing in Madinah and Makkah.
- Meanwhile, according to the most recent report from the Ministry of Investment, the net inflow of foreign direct investment hit 105 billion riyals by the end of 2022, up 21.4% from the previous year, and the highest net inflow since 2004. This is because Saudi Arabia's investment climate has greatly improved, thanks to initiatives aimed at making the country more competitive and giving more influence to the private sector.
- According to the ministry, the new approach will help find good investment opportunities in priority non-oil sectors, which will entice investors from around the world and help meet the targets of Vision 2030 in terms of implementing the National Investment Strategy's objectives. Read : Vegetable waste in Saudi Arabia exceeds 1 million tons annually
