Foreign Investors Now Officially Classified as Saudis Under Nitaqat Saudization Program
In a groundbreaking decision, foreign investors can now be classified as Saudis under the Nitaqat Saudization program, approved by the Ministry of Human Resources and Social Development.
This move signifies a significant provision within the classification system, where these individuals will be treated as equal to citizens when calculating Saudization percentages, as reported by Saudi Gazette.
New Categories of Individuals Treated as Nationals
The Nitaqat program has introduced two new categories of individuals treated as nationals, including the children of local women married to non-Saudis and widows of residents who are not from the Kingdom.
Furthermore, Saudi citizens working remotely will also be considered on par with other regular local employees.
Equal Treatment for Certain Groups
Individuals from displaced tribes, citizens of Gulf countries, and players or athletes from the region will now be treated equally with Saudis in the calculation of Saudization percentages.
However, certain expatriates, such as Palestinians holding Egyptian passports and Baluchis, will be factored in at reduced rates for Saudization calculations.
Foreign Direct Investment on the Rise in Saudi Arabia
As part of its Vision 2030 economic diversification initiative, Saudi Arabia has seen a 6 percent annual increase in foreign direct investment (FDI) inflows in the first nine months of 2023, according to the Ministry of Investment.
With updated transparency and governance standards, FDI funds reached SR52.9 billion ($14.11 billion), excluding a significant Aramco deal in 2022.
Striving Towards Vision 2030 Targets
The Kingdom has implemented significant legal, economic, and social reforms to stimulate FDI inflows, aiming to reach SR83 billion by 2023 in alignment with the objectives outlined in the National Investment Strategy and Vision 2030 targets.
By the third quarter of 2023, Saudi Arabia had already achieved 64 percent of this ambitious objective, showcasing its commitment to attracting foreign investment and promoting economic growth.