Nitaqat Saudisation is the way the Ministry of Human Resources and Social Development (HRSD) places private-sector establishments in one of five ranges, from Red to Platinum, by comparing the share of Saudi employees with a minimum set for the establishment’s activity and size. Since 15 April 2026 only Saudi employees whose contracts are documented on Qiwa count towards that share, so HR needs nationality, wage, employment type and Qiwa contract status on every employee record.
This is general information, not legal advice. Weightings and targets change between programme phases, so confirm them with HRSD or a qualified adviser before relying on them for your own establishment.
How the Nitaqat programme classifies an establishment
Nitaqat Saudisation rests on one ratio, which HRSD’s English pages spell Saudization. The Saudisation rate is the average number of Saudi employees divided by the average number of Saudi and expatriate employees together, multiplied by 100, taken across the establishment’s branches. That is how HRSD’s procedural guideline for Nitaqat Mutawar (Version 2.0, 2021) defines it. The same guideline defines an expatriate employee as someone who is not a GCC citizen.
The rate is compared with a minimum that depends on the establishment’s economic activity and its total workforce. The guideline calculates that minimum with a logarithmic formula of workforce size, with values set per activity and per year, instead of fixed size bands. The comparison places the establishment in Red, Low Green, Medium Green, High Green or Platinum.
The range matters because it decides which services the establishment can use, and the guideline lists them range by range. A Red establishment, for example, may not apply for any new visas or receive transferred expatriate workers.
Employers can test their Nitaqat Saudisation position with HRSD’s free Nitaqat calculator, which takes the number of workers and the economic activity and returns the Saudisation rate and the classification. In January 2026 the Ministry announced a new three-year phase of Nitaqat Mutawar, with target Saudisation rates proposed after sector studies, according to Argaam’s report. Targets move, so any Nitaqat Saudisation report built on today’s figures needs a way to change them.
What changed in Nitaqat Saudisation on 15 April 2026
From 15 April 2026 the Ministry calculates Saudisation rates in the Nitaqat programme from employment contracts documented electronically on Qiwa. HRSD says that documenting a Saudi employee’s contract on Qiwa is a fundamental requirement for including that employee in the rate, and it urged every establishment to complete its documentation to avoid any effect on its classification. The announcement was published on 15 March 2026, and HRSD’s English notice gives Council of Ministers Resolution No. 195 of 4/4/1443H as its basis.
In practice, contract status becomes a Nitaqat field. On Qiwa the establishment creates the contract, the employee can approve it, reject it or ask for amendments, and the Ministry certifies it once both sides agree (HRSD, Contract Management). Check where every Saudi employee’s contract stands in that flow. The announcements do not say which status counts as documented, so ask HRSD before you treat a pending contract as counted.
Who counts in the Saudi nationals ratio, and how much
The ratio behind Nitaqat Saudisation is not a plain headcount. A ministerial decision announced by HRSD on 18 November 2020 ties the weight of each Saudi employee to monthly wage and working pattern. The table shows the weights it states. Confirm that they still apply to your establishment before you build them into a report.
| Saudi employee | Counted as |
|---|---|
| Monthly wage of SAR 4,000 or more | One employee |
| Monthly wage from SAR 3,000 to below SAR 4,000 | Half an employee |
| Monthly wage below SAR 3,000 | Not counted |
| Part-time, wage of at least SAR 3,000, social insurance contributions paid | Half an employee |
| Flexible-work arrangement, 168 working hours completed, social insurance contributions paid | One third of an employee |
Nationality also needs more than a Saudi or non-Saudi flag. Because the guideline defines an expatriate employee as someone who is not a GCC citizen, record GCC citizens separately and ask HRSD how they are treated in your establishment’s calculation.
What your HR system must hold for workforce nationalisation reporting
A Nitaqat Saudisation report can only reproduce the calculation if the employee record carries every input. The table lists each field and the official source of the requirement.
| Field | Why it matters | Basis |
|---|---|---|
| Nationality, with GCC citizens shown separately | Defines the Saudi and expatriate headcounts | Nitaqat Mutawar guideline |
| Establishment and branch | Averages are taken across the establishment’s branches | Nitaqat Mutawar guideline |
| Economic activity of the establishment | Sets the minimum and is an input to HRSD’s calculator | Guideline and calculator page |
| Monthly wage | Decides how much a Saudi employee counts | 2020 ministerial decision |
| Employment type (full-time, part-time or flexible) | Changes the weight | 2020 ministerial decision |
| Social insurance contributions paid | A condition for counting part-time and flexible-work employees | 2020 ministerial decision |
| Qiwa contract status and the date documented | Only documented contracts count from 15 April 2026 | HRSD announcement |
| Start and end dates | The rate uses average headcounts, so the timing of joiners and leavers moves it | Nitaqat Mutawar guideline |
| Job title or profession | Supports the separate profession-based decisions described below | HRSD announcement, December 2023 |
Keep thresholds and targets as settings
The wage threshold rose from SAR 3,000 to SAR 4,000 in 2020 and a new phase of targets was announced in 2026, so the numbers behind Nitaqat Saudisation will change again. Store weights, thresholds and target rates as settings with an effective date, not as formulas written into a report. Last quarter’s figures can then still be explained after a rule changes.
The monthly Nitaqat Saudisation report HR leaders need
- The current Saudisation rate for each establishment, next to the minimum for its activity and size from HRSD’s calculator.
- How many more fully counted Saudi employees the next range would need.
- Every Saudi employee who is not counted in full, with the reason, whether that is the wage band, part-time or flexible weighting, or no documented Qiwa contract.
- Expected joiners and leavers over the next quarter, including fixed-term contracts due to end, and their effect on the rate.
- Any gap between your figure and the Ministry’s, traced employee by employee.
Treat the system’s Nitaqat Saudisation figure as an internal estimate. The Ministry decides the classification, so reconcile your report with the calculator and with each establishment’s status on Qiwa every month.
Human capital management software that keeps nationality, contracts, wages and dates on one employee record can produce these reports without a side spreadsheet. When you compare vendors, ask each to run the Nitaqat Saudisation report on your own data, as how to choose HR software in Saudi Arabia suggests. If the data is coming from an older system, check contract status and wage fields first. The HR data migration checklist shows how.
Profession-based decisions sit outside the rating
HRSD has also announced Saudisation decisions for specific professions. Those for sales, purchasing and project management professions took effect on 24 December 2023. They are separate from Nitaqat Saudisation, so keep each job title mapped to the professions named in each decision and report against them alongside the Nitaqat figure.
Check your Nitaqat Saudisation data before the next report
Tell us how you count Saudi employees today and where contract status and wages are held. We will go through the fields above with you and show which ones your current system cannot yet produce.
Sources
- Procedural Guideline Nitaqat Mutawar Program, Version 2.0 (Ministerial Decision No. 182495, 11/10/1442H), Ministry of Human Resources and Social Development. hrsd.gov.sa. Accessed 2 October 2026.
- Nitaqat Calculator, Ministry of Human Resources and Social Development. hrsd.gov.sa. Accessed 2 October 2026.
- Electronic documentation of work contracts via Qiwa as a requirement for counting localisation rates in Nitaqat (Arabic), Saudi Press Agency, 15 March 2026. spa.gov.sa. Accessed 2 October 2026.
- The Ministry of Human Resources and Social Development has mandated the electronic documentation of employment contracts through the Qiwa platform, HRSD news. hrsd.gov.sa. Accessed 2 October 2026.
- Contract Management service, Ministry of Human Resources and Social Development. hrsd.gov.sa. Accessed 2 October 2026.
- Ministerial decision raising the minimum wage for counting Saudis in Nitaqat (Arabic), HRSD news, 18 November 2020. hrsd.gov.sa. Accessed 2 October 2026.
- Saudisation of sales, purchasing and project management professions has come into effect, HRSD news, December 2023. hrsd.gov.sa. Accessed 2 October 2026.
- Nitaqat Program launches new phase to localize 340,000 jobs, Argaam, 22 January 2026 (press report). argaam.com. Accessed 2 October 2026.
