SAUDIZATION: Nitaqat Pros and Cons

SAUDIZATION-Nitaqat Pros and ConsAll norms, rules, and laws that are drafted, promulgated and implemented have pros and cons. With the strict implementation of the Nitaqat, it is quite interesting to look at its advantages and disadvantages. It’s only there that one can asses it serious effects.
 
Take a glimpse on its pros and cons listed here below.
 
PROS:
 
a. for the Saudi Government
 
1. There’s a huge rise of local employment nationwide.
 
2. Even Saudi women landed a job.
 
3. Therefore, the end of the Nitaqat is attained.
 
b. for the Companies (Blue and Green)
 
1. They can hire foreign workers from any part of the world.
 
2. They can get new visas with open profession except for the jobs strictly for Saudis such as Government Relation Officer, Security Guard, etc.
 
3. They can enjoy the good service of the Saudi Nationals.
 
CONS: in General
 
1. Red and Yellow companies opted to hire even unqualified and inexperienced Saudis. It will result to the big loss of the affected companies, for without enough productivity, the projected profit will not be reached.
 
2. Red and Yellow companies hired local workers for attendance purposes in order to attain the required percentage of the Nitaqat. This will result again to a big damage to the finances of the said companies. A simple logic will explain, there is no production, therefore there is no profit.
 
3. An issue of name-selling is a great possibility, wherein the affected companies can hire Saudis just to be qualified for the Green category. Locals can simply register to the company as employees but only to report every payday. In this situation, a Saudi can apply to one or more companies which are struggling to attain the require percentage of Saudization.
 
Thus, the Red and Yellow companies are merely buying the names of the Saudis in order to be included in their payroll.