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IMPACT – HIGH
What is the change? Saudi Arabia has announced that at the beginning of next year it will set aside 20 percent of private sector engineering positions for Saudi nationals.
What does the change mean? The new policy will apply to all private sector employers with five or more employees in engineering professions.
Background: Saudi Arabia eliminated the Nitaqat (Saudization) yellow category in January, an action which moved companies in this category into the red category where they are not allowed to renew work permits or apply for residence permits. Stricter requirements for the hiring of foreign engineers were imposed in 2017.
Employers must be sure that foreign nationals working as engineers in the private sector must have a job title that matches the job title on their work permit. The Ministry of Human Resources and Social Development will also cease to provide government services to employers found to be in violation of the policy. The salaries of the new Saudi engineering jobs must be at least SR7,000 per month. The 20 percent Saudization of private sector engineering jobs covers 117 engineering fields.
Analysis & Comments: Employers should take note of the new policy requirements and follow them in order to be in compliance. Employers are encouraged to work with Deloitte to ensure they remain in compliance with the new requirements.
Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
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