Topics

Saudization (Nitaqat)

السعودة (نطاقات)

Overseen by: Ministry of Human Resources and Social Development (Nitaqat) · Last reviewed: 27 محرّم 1448هـ (13 July 2026)

In brief

Nitaqat is the MHRSD workforce-nationalization programme that requires private-sector establishments in Saudi Arabia to employ a minimum share of Saudi nationals. Establishments are classified into bands — Platinum, Green (high/mid/low) and Red — by their Saudization rate, sector and size. Red-band establishments lose Ministry services such as visa issuance and work-permit renewal.

Who must comply

  • All private-sector establishments in Saudi Arabia must employ a set number of Saudi nationals.
  • Each establishment is classified by three factors: its registered activity, its total workforce size, and its Saudization rate.
  • Very small establishments (5 or fewer employees) use a simplified two-band Green/Red classification and must employ at least one Saudi to be Green.
  • Engineering employers with 5 or more workers in the covered professions must reach a 30% Saudization rate.
  • Establishments with 3 or more workers in the covered procurement professions must reach a 70% Saudization rate.

Penalties

  • A Red-band establishment cannot apply for new visas, use transfer visas, renew work permits, or open files for new branches — in general it stops receiving Ministry services. Nitaqat is enforced through service suspension, not a fixed monetary fine. ↗
  • Only establishments in the Mid-Green band and above can renew foreign work permits, obtain new work visas, and transfer or reclassify employees — dropping below that band withdraws these privileges. ↗
  • For the sector-specific Saudization decisions, statutory legal penalties apply to violators after the grace period ends; the Ministry urges compliance to avoid them. ↗

Effective dates

  • The Developed Nitaqat Ministerial Decision No. 182495 was published on 3 Sha'ban 1447 AH (22 January 2026). ↗
  • MHRSD announced (19 February 2026) a new three-year phase of the Developed Nitaqat programme, beginning in 2026, aiming to localize more than 340,000 additional jobs. ↗
  • The 70% Saudization rate in procurement professions takes effect from 31 May 2026. ↗
  • The 30% Saudization rate in engineering professions takes effect from 30 June 2026, for establishments employing 5 or more workers in the covered professions. ↗

How to comply

  1. Check your establishment's current band and Saudization rate on the Qiwa platform — it is computed from your registered activity, workforce size and number of Saudi employees.
  2. Understand the two calculation methods: the 26-week rolling average, and the immediate single-week calculation used for new, grouped, or recently-stabilized establishments.
  3. Identify the sector-specific decisions that apply to you (e.g. engineering 30%, procurement 70%) and their profession lists in the Ministry's procedural guides.
  4. Aim for at least the Mid-Green band — the band from which you can renew work permits, obtain visas and move employees. Falling to Red suspends these services.
  5. Read the Developed Nitaqat procedural guide and Ministerial Decision No. 182495 to confirm your sector's three-year Saudization targets.
  6. Keep an obligations register tracking your band, the Saudization thresholds and effective dates for every profession you employ, and review it weekly against Qiwa.

Track every obligation in one place

Bawadir's Compliance tier turns a topic like this into a downloadable obligations register — every requirement, owner, deadline and source in one Excel workbook.

See the Compliance tier →

Latest updates on this topic

MHRSDMinistry of Human Resources and Social Development 2 items
MOHMinistry of Health 1 item
SOCPASaudi Organization for Chartered and Professional Accountants 1 item

Official sources

Some official pages are rendered dynamically and may need a browser to open.

Questions & answers

What are the Nitaqat bands?

Establishments are classified as Platinum, High Green, Mid Green, Low Green, or Red, based on their Saudization rate and workforce size, with the calculation varying by activity and size. Very small establishments (5 or fewer employees) use a simplified two-band Green/Red system.

What happens if my establishment falls into the Red band?

A Red-band establishment cannot apply for new visas, use transfer visas, renew work permits, or open files for new branches, and in general it stops receiving Ministry services. Nitaqat is enforced through service suspension rather than a fixed monetary fine.

When does the new Developed Nitaqat phase start and what changes?

MHRSD announced (19 February 2026) a new three-year phase of the Developed Nitaqat programme, starting in 2026, aimed at localizing more than 340,000 additional jobs. It is built on Ministerial Decision No. 182495 (published 22 January 2026) and works by merging similar activities into unified groups and linking the Saudization rate to headcount.

What are the new engineering and procurement Saudization rates?

The engineering rate rose to 30% for establishments employing 5 or more workers in the covered professions, effective 30 June 2026. The procurement rate rose to 70% for establishments with 3 or more workers, effective 31 May 2026.

Subscribe to the daily brief

Stay current — one brief, every working morning.

This page is a reference summary compiled from official sources — it is not legal advice. The authoritative text is always the original instrument; always verify against the official source before acting.

Compiled by Bawadir from the cited official Saudi sources, cross-referenced with the daily regulatory record. Reviewed and dated below. Last reviewed: 27 محرّم 1448هـ (13 July 2026)