Northman & Sterling

Saudi Arabia Enhances Foreign Investor Status Under Nitaqat Saudization Program

Equal Status for Foreign Investors

Saudi Arabia’s Ministry of Human Resources and Social Development has announced an update to the Nitaqat Saudization program. Foreign investors owning private businesses will now be treated as Saudi nationals in workforce calculations, aiming to foster a more inclusive business environment.

Expanded Inclusivity

Specific Group Calculations

Some expatriates, including Palestinians with Egyptian passports and Baluchis, count as a quarter of a Saudi in workforce calculations, aiming to balance the workforce. This also applies to people from Myanmar, with exceptions for those in Makkah and Madinah.

Boost in Foreign Investment

Foreign direct investment in Saudi Arabia increased by 21.4% in 2022, reaching 105 billion Saudi riyals, the highest since 2004. This growth shows Saudi Arabia’s improved investment environment, aiming to draw international investment into non-oil sectors to support Vision 2030 and the National Investment Strategy.

This concise overview encapsulates the recent changes in Saudi Arabia’s Nitaqat Saudization program and investment landscape, reflecting the Kingdom’s push towards an inclusive, diversified economy.