Under the third proposed phase of Nitaqat, entities in Saudi Arabia would have faced increased Saudisation targets from 20 April 2015. For instance, medium sized entities (50-499 employees) operating in the Information Technology and Financial industries would have experienced significant hikes to maintain a Medium Green Saudisation rating - from 27% to 33% and from 63% to 81%, respectively.

The Nitaqat system allocates Saudisation figures on the basis of an entity's industry and size. Entities with a higher percentage of Saudi employees receive a higher Nitaqat “grade,” while lower ranked entities can experience restrictions on corporate sponsorship, among other penalties.

What This Means for Employers and Foreign Nationals

The postponement of the Nitaqat changes should benefit the private sector, which has recently sought relief from increasing government-imposed Saudisation requirements.