In Saudi Arabia, a company’s color classification under the Nitaqat system isn’t just a label; it directly affects how it operates, hires, and grows. Whether a business is marked as Red or Green plays a major role in its access to government services.
Company Red or Green Status in Saudi Arabia: What It Means and Why It Matters
In Saudi Arabia, understanding whether a company is labeled Red, Green, or Platinum isn't just a matter of reputation; it directly affects its ability to operate, recruit, and retain talent.
This color-based categorization is part of a larger workforce policy called Nitaqat, a program designed to increase national employment rates by encouraging private-sector firms to hire Saudi nationals.
What Is Nitaqat Status?
The Nitaqat system is a government-led initiative created by the Ministry of Human Resources and Social Development to measure how well companies are integrating Saudi nationals into their workforce.
The program sets targeted Saudization ratios based on company size and industry. In short, the more Saudi citizens a business employs in proportion to its total staff, the better its classification.
These classifications aren’t just internal records; they determine what services the company can access and how it’s treated by public entities. A company’s Nitaqat status is publicly accessible and updated regularly to reflect workforce changes.
Why the Program Exists
Nitaqat was introduced to support Vision 2030, a national framework aiming to diversify the economy and reduce reliance on foreign labor.
By promoting employment for Saudi nationals across key industries, the program plays a strategic role in shaping a sustainable job market.
Color Categories Explained
The Nitaqat system divides companies into tiers, with each tier offering or limiting access to government services based on compliance with Saudization targets. Here's a breakdown of what each color status means:
Platinum Tier
This is the highest possible classification under Nitaqat. Companies in this group not only meet but exceed nationalization targets for their industry.
What does it means in practice?
- Priority access to labor services
- Faster processing for employee visas
- Easier transfer procedures
- Positive visibility with regulatory bodies
- Better positioning for government contracts
Firms in this category are seen as role models for national workforce development.
High Green
High Green companies fully comply with required Saudization ratios. While not above and beyond like Platinum firms, they meet the government’s expectations.
Privileges include:
- Uninterrupted access to most labor services
- Approval for new work permits
- Smooth business license renewals
- Fair chances in tenders and partnerships
This tier shows a stable level of compliance and functional performance.
Medium Green
Companies in this band still meet Saudization standards but are closer to the minimum acceptable level. They're operating legally but don’t enjoy the same speed or benefits as higher-tier companies.
Implications:
- Slower service timelines
- More scrutiny in labor-related requests
- Limited approval flexibility
- Encouraged to increase hiring of Saudi nationals
This tier often serves as a warning zone businesses may start facing pressure to improve.
Low Green
A low green status indicates minimal compliance. The company meets just enough criteria to avoid being downgraded but is at risk of slipping if it doesn’t act.
Operational concerns include:
- Delayed service access
- Unstable workforce support
- Restricted future growth options
- Potential monitoring from authorities
It’s a red flag to internal HR teams that changes are necessary soon.
Red Tier
This is the lowest classification, and it comes with serious consequences. Red-tier companies fail to meet Saudization benchmarks and are flagged as non-compliant.
What happens in the Red zone:
- Inability to renew or issue new work visas
- Delays in all labor-related services
- Employees may legally transfer to other companies without consent
- Loss of access to several government services
- Increased chances of fines or suspension
For any company in the Red tier, urgent adjustments are required not just to restore operational access but to maintain a basic level of business continuity.
Yellow Tier (Phased Out)
The Yellow category once existed as a transitional warning level. It was phased out to streamline the system. Companies previously in this tier are now classified based on updated Saudization standards.
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What Determines a Company’s Tier?
The classification isn’t based on headcount alone. Several factors are assessed:
- Number of Saudi employees vs. total workforce
- Type of activity (some sectors have higher quotas)
- Company size (micro, small, medium, large, or mega)
- Consistency of compliance over time
The system is data-driven and updated frequently. Employers can check their real-time status through official platforms linked to the Ministry of Human Resources.
Whether you're an employer planning to expand, or a job seeker comparing companies, understanding Nitaqat status is essential.
Red or Green isn't just about color it reflects policy compliance, hiring ethics, and long-term sustainability.
Need to move your business into the Green zone or keep it there?
Partner with Motaded and stay ahead. Their solutions are built to align your goals with Saudi Arabia’s evolving business environment efficiently, legally, and with confidence.
What It Means to Be Company red or green in Saudi Arabia
In Saudi Arabia, companies are not only judged by their balance sheets or office size. Their standing in the eyes of the government also depends on how well they integrate Saudi nationals into their workforce.
This is where the Nitaqat system comes in, assigning colors like Green or Red to companies based on their nationalization performance.
These colors aren’t just labels; they come with real consequences for business operations, employee mobility, and access to essential government services.
Understanding what each status means helps businesses avoid restrictions and gives job seekers insight into which companies are stable and which may be at risk.
What Does Green Status Really Mean?
A company holding Green status under the Nitaqat framework is recognized as compliant with the current Saudization requirements for its sector and size.
It doesn't necessarily mean the company is hiring more Saudi employees than required but it does mean it’s meeting the government’s baseline expectations.
There are three levels within the Green category: Low Green, Medium Green, and High Green. Each level reflects how closely the company’s Saudization ratio matches the national target or exceeds it slightly.
Practical Advantages of Green Status:
- Access to Visa Services: Green companies are eligible to apply for new work visas. This means they can continue hiring foreign workers as needed, provided other conditions are met.
- Renewal of Work Permits: Expatriate employees working in Green companies don’t face obstacles renewing their work permits. The company can handle renewals without extra conditions or delays.
- Smooth Transaction Processing: Green-tier companies receive normal processing timelines for labor-related procedures, including job title changes, sponsorship transfers (under approved scenarios), and GOSI registrations.
- Stable Employer Reputation: In public tenders and private sector partnerships, having a Green classification sends a signal that the company is structured, reliable, and aligned with national goals.
- Employee Retention and Recruitment: Job seekers both Saudi nationals and foreign professionals, often prefer companies in the Green band. These businesses are less likely to face sudden restrictions or be denied service access.
The Business Implication of Being in the Green Zone
For companies, Green status is more than just avoiding penalties. It opens the door to strategic growth. With legal backing to hire, renew, and expand, Green companies can scale operations smoothly.
This is especially valuable for firms involved in high-volume projects, logistics, retail, or international partnerships.
It also simplifies contract eligibility; many public sector projects require companies to be Green or above. Falling below this tier could disqualify a company from government work entirely.
What Happens When a Company Is Classified as Red?
A Red status is the lowest possible ranking under the Nitaqat classification.
It indicates that the company does not meet the minimum Saudization percentage required for its industry and size. It’s more than a compliance issue; it's a red flag that the company is out of alignment with national labor policy.
The implications are significant and can affect nearly every function of business management.
Operational Restrictions for Red Companies:
- Blocked Access to New Work Visas: Companies in the Red category cannot apply for new foreign work visas. Their hiring capabilities become limited to Saudi nationals only.
- Inability to Renew Expat Work Permits: Red companies are often blocked from renewing iqamas (residency permits) or work permits for their current expatriate workforce. This can lead to staffing instability.
- Loss of Control Over Sponsorship Transfers: Expatriate employees working in Red-tier companies can transfer their sponsorship to Green or Platinum companies without their current employer’s consent. This can result in rapid employee loss.
- Limited Access to Government Portals: Certain government platforms and services may restrict features or deny access to companies in the Red category. This includes systems for social insurance, digital commercial services, and more.
- Negative Perception in the Market: Red status harms the company’s reputation. Business partners, potential hires, and financial institutions often view Red-tier firms as unstable or non-compliant.
The Cost of Falling into the Red Zone
Being labeled as Red doesn’t just interrupt internal workflows. It threatens a company’s long-term viability. Labor constraints make it harder to operate effectively.
Losing skilled foreign staff without control can drain a business’s experience pool. Add to that the reputational damage and potential loss of key contracts, and it becomes clear: staying in the Red zone is not sustainable.
Even if a company isn’t immediately fined, the indirect consequences of missed opportunities, high turnover, and longer processing delays can become financially crippling.
What Can a Company Do to Climb from Red to Green?
While the penalties are serious, the system does allow companies to improve their classification. But action needs to be deliberate and timely.
Steps Toward Recovery:
- Hire more Saudi nationals in roles recognized under your CR activity code
- Update job titles and ensure they are properly registered with social insurance and labor platforms
- Join national employment support programs, which help offset the cost of hiring and training Saudi workers
- Work with HR advisors who specialize in compliance to restructure hiring practices and documentation
- Monitor your status weekly, not just annually data is updated frequently, and minor improvements can lead to status upgrades
Green or Red status isn’t a label to ignore. It determines what a business can or cannot do when it comes to hiring, operations, and credibility.
Green companies enjoy streamlined processes, workforce flexibility, and access to growth channels. Red companies face the opposite restrictions, workforce loss, and stalled progress.
For businesses operating in Saudi Arabia, staying within the Green band or higher isn’t just about legal safety, it's a signal to the market that you’re serious, sustainable, and ready for the future.
Whether your business needs to improve its Saudization status or you're planning to launch in the Kingdom, taking the right steps early is essential to avoid operational blocks and missed opportunities.
That’s where Motaded steps in. With deep expertise in local regulations and workforce strategy, we help companies establish, correct, and grow their presence with full compliance and clarity. Contact With Us.
FAQs About Company Red or Green Status in Saudi Arabia
What does it mean if a company is classified as Green?
A Green status means the company meets or exceeds the Saudization percentage required for its industry and size. It has full access to labor services, visa processing, and government systems.
What happens if a company is labeled Red?
Red-tier companies are below the required Saudization level and face restrictions. They can’t renew work permits for expats, issue new visas, or stop employees from transferring to other companies.
What are the different Nitaqat categories?
Companies fall into tiers: Platinum, High Green, Medium Green, Low Green, and Red. Each reflects how well the business is aligned with Saudization goals.
Why is company color status important for job seekers?
Green and Platinum companies offer more stable work environments, faster visa processing, and fewer legal complications making them more attractive and secure for employment.
Where can I check a company’s Nitaqat status?
Employees and business owners can check status through official government platforms linked to the Ministry of Human Resources and Social Development.
Does Nitaqat apply to all sectors?
Yes. While Saudization targets vary by industry, all registered businesses are evaluated under the Nitaqat system regardless of their field.
Is there any Agency that supports businesses with Nitaqat compliance?
Motaded helps companies improve their Saudization status by offering strategic guidance, handling documentation, and aligning HR practices with current Nitaqat requirements to ensure smooth, long-term compliance.