Saudization in Saudi Arabia: Nitaqat percentage, bands and requirements in 2026
Saudization requires every private company to employ a minimum share of Saudi nationals, measured by the Nitaqat programme of the Ministry of Human Resources and Social Development (HRSD). Your band decides what you can do for foreign staff: new visas, work permit renewals, transfers. Here is the official formula for the 2026–2028 phase, who counts as a Saudi employee, and what it means for a company that is just starting.
- Nitaqat bands, from Red to Platinum
- 51
- Salary for a Saudi to count in full
- SAR 4,0004
- Saudi employee required up to 5 staff
- 13
In brief
- Nitaqat is the HRSD programme that places every private company in one of five bands, Red, Low Green, Medium Green, High Green and Platinum, according to its share of Saudi employees.
- A new three-year phase applies from 2026 to 2028: the minimum for each band is calculated with the formula y = m × ln(headcount) + c, using coefficients set for each of 41 economic activities and each year in the HRSD procedural guide.
- A Saudi employee paid at least SAR 4,000 a month counts as one, between SAR 3,000 and 3,999 as a half, and below SAR 3,000 does not count (HRSD decision of 18 November 2020).
- An entity with 5 employees or fewer has no formula to follow: the ministry requires one Saudi employee. For a 10-person consulting company, the Low Green threshold is about 36% in 2026.
- Profession quotas apply on top of Nitaqat: 100% Saudis in 69 administrative roles since 5 April 2026, 30% in engineering roles, and 40% rising to 70% in accounting.
What is Saudization and the Nitaqat programme?
Saudization (السعودة, also called localisation, توطين) is the policy that reserves a share of private-sector jobs for Saudi nationals. Its main tool is Nitaqat (نطاقات, "bands"), launched in 2011 by the Ministry of Human Resources and Social Development (HRSD).
Nitaqat measures the Saudi share of each entity: all the establishments of one company that carry out the same economic activity. The result places you in a band, updated weekly on Qiwa, the ministry platform for contracts, visas and work permits.
The current version is Nitaqat Mutawar ("developed Nitaqat"). In 2021 it replaced size brackets with a continuous curve. On 19 February 2026 the HRSD launched a new three-year phase aimed at creating more than 340,000 additional private-sector jobs for Saudis, with new coefficients for 2026, 2027 and 2028.
The five Nitaqat bands and what each allows
Services available by band, from the HRSD Nitaqat Mutawar procedural guide (2026). Each service remains subject to its own rules.
Table 1
| Band | New work visas | Change a foreign employee's profession | Renew work permits | Receive a transferred employee |
|---|---|---|---|---|
| Platinum | Yes | Yes | Yes | Yes |
| High Green | Yes | Yes | Yes | Yes |
| Medium Green | Yes | Yes | Yes | Yes |
| Low Green | No | No | Yes | No |
| Red | No | No | No | No |
How is the Saudization percentage calculated?
1. Your Saudization rate. The ministry divides the weighted Saudi headcount (see the rules below) by the sum of that headcount and the expatriate headcount, then multiplies by 100. The official guide works on average headcounts, not a one-day snapshot, and the band is refreshed weekly in Qiwa.
2. The threshold of each band. For your activity, the minimum for each Green band and for Platinum follows the official formula y = m × ln(x) + c, where x is the entity's total headcount, ln the natural logarithm, m a slope set per activity and band, and c a constant set per activity, band and year (2026, 2027 or 2028).
3. Your band. You sit in the highest band whose threshold you reach. Below the Low Green threshold, you are Red.
Small entities. The ministry's official calculator states that the formula applies from 6 employees: with 5 employees or fewer, one Saudi employee is required.
To run the numbers with the official coefficients for your activity, use the Nitaqat calculator.
Who counts as a Saudi employee, and how much?
Counting rules published by the HRSD (decision of 18 November 2020, still applied in 2026).
Table 2
| Saudi employee's situation | Counts as | Condition |
|---|---|---|
| Monthly salary of SAR 4,000 or more | 1 employee | Registered with GOSI |
| Salary of SAR 3,000 to 3,999 | ½ employee | SAR 3,000 included |
| Salary below SAR 3,000 | 0 | Does not count |
| Part-time, students included | ½ employee | At least SAR 3,000, contributions paid, 2 employers at most |
| Flexible work | ⅓ employee | 168 hours a month in total, contributions paid |
Saudization percentage by activity in 2026
Thresholds calculated with the official 2026 coefficients (HRSD guide, annex 1) for activities often chosen by foreign investors. Thresholds rise with headcount, and year on year for most activities.
Table 3
| Activity | Low Green, 10 staff | Medium Green, 10 staff | Low Green, 50 staff | Medium Green, 50 staff |
|---|---|---|---|---|
| Business services (consulting) | 36.2% | 45.0% | 37.8% | 46.6% |
| IT solutions | 31.8% | 37.9% | 35.3% | 41.7% |
| Accommodation, entertainment and tourism | 30.2% | 36.6% | 34.1% | 40.5% |
| Wholesale and retail | 28.9% | 33.4% | 32.9% | 37.4% |
| Manufacturing | 18.9% | 26.2% | 21.7% | 29.2% |
| Full-service restaurants | 17.1% | 20.8% | 19.7% | 23.5% |
| Land transport and storage | 14.7% | 18.8% | 16.6% | 20.7% |
| Construction contracting | 13.3% | 15.3% | 12.7% | 14.7% |
Profession quotas on top of Nitaqat
The HRSD also issues localisation decisions for specific professions. They apply in addition to your Nitaqat band, role by role.
Table 4
| Roles | Saudi share required | Who is covered | Since |
|---|---|---|---|
| 69 administrative roles (secretarial, writing, translation, data entry, admin support) | 100% | Any company employing at least one person in these roles | 5 April 2026 |
| 46 engineering roles | 30% | Companies employing at least 5 people in these roles | HRSD announcement, July 2026 |
| 44 accounting roles | 40%, rising to 70% over five years | Companies employing at least 5 accountants | 27 October 2025 |
Saudization requirements and GOSI: what each hire changes
Each foreign employee carries a monthly levy: SAR 700 a month while expatriates do not outnumber Saudis, SAR 800 otherwise, which is the usual case for a company starting with a foreign manager. Add the iqama (SAR 650 a year) and a GOSI contribution of 2% of basic salary plus housing.
For a Saudi employee, GOSI contributions are higher (about 21.5% in total) and the salary must reach SAR 4,000 to count in full. In return there is no levy and no iqama, and each properly registered Saudi keeps you further from Red.
The maths therefore works role by role, which is why it belongs in the set-up budget, not only in HR. See the cost calculator.
A new company: planning Saudization in four steps
- 1
Identify your Nitaqat activity
It follows from the activity registered with the Ministry of Investment (MISA) and on the commercial registration. The same project can fall under business services or IT solutions, with different thresholds: decide before registering.
- 2
Budget the Saudi hires
For each planned headcount (6 months, 1 year, 3 years), work out how many Saudis you need to stay at least Medium Green, the band that keeps access to visas. Put their salaries in the financing plan.
- 3
Check reserved roles
Assistant, translator, accountant, engineer: some roles fall under profession quotas. Better to know before promising a role to a foreign candidate.
- 4
Track your band weekly on Qiwa
Contracts documented on Qiwa, salaries registered with GOSI: a Saudi who is not properly registered does not count. One unplanned departure can tip a small team into a lower band.
The most expensive mistakes
What Tasis Partners does, and what is outside our control
Frequently asked questions
What is Nitaqat in Saudi Arabia?
Nitaqat is the Saudization programme of the Ministry of Human Resources (HRSD). It places every private company in one of five bands, from Red to Platinum, according to its share of Saudi employees, and that band decides its access to visas and work permits for foreigners.
What is the Saudization percentage for a small company?
With 5 employees or fewer, the ministry requires one Saudi employee. From 6 employees, the threshold depends on activity and headcount: about 36% for Low Green in a 10-person consulting company in 2026, and just under 19% in manufacturing.
Does a Saudi paid less than SAR 4,000 count in Nitaqat?
They count as half an employee between SAR 3,000 and 3,999 a month, and not at all below SAR 3,000. At SAR 4,000 or more they count as one full employee. Some profession quotas require a higher salary.
What happens if my company is in the Red band?
In Red, the company can no longer request visas, issue new work permits, renew its foreign employees' permits, change their professions or receive transferred employees. In Low Green, it keeps permit renewals but loses access to new visas.
What is a Saudization certificate?
It is a certificate issued on Qiwa to establishments that meet their Saudization requirements. It is often requested in government tenders and some procedures. Check its conditions and validity on Qiwa before you need it.
Does a foreign general manager count in the calculation?
Yes: every foreign employee of the entity counts in the total and expatriate headcounts. A foreign manager with a first foreign hire already makes two employees and no Saudi.
Will Saudization requirements increase?
For most activities, yes: the 2026–2028 phase sets coefficients that rise each year. For a 10-person consulting company, the Low Green threshold goes from about 36% in 2026 to about 42% in 2028.
Do profession quotas replace Nitaqat?
No, they apply on top of it. A company can be Green and still have to reserve some roles for Saudis, such as the 69 administrative roles saudized at 100% since 5 April 2026.
Notes and sources
- 1.HRSD: Nitaqat Mutawar procedural guide 2026 (formula, bands, coefficients by activity)
- 2.HRSD: launch of a new phase of Nitaqat Mutawar (19 February 2026)
- 3.HRSD: official Nitaqat Mutawar 2026 calculator (5-employee rule)
- 4.HRSD: SAR 4,000 minimum wage for a Saudi to count in Nitaqat (18 November 2020)
- 5.HRSD: Nitaqat Mutawar frequently asked questions
- 6.HRSD: 69 administrative roles saudized at 100% (April 2026)
- 7.HRSD: Saudization of 44 accounting roles (November 2025)
- 8.HRSD: 30% Saudis in engineering roles (July 2026)
Information verified in September 2026. Amounts and timelines are observed ranges provided for information only. Government fees are set by Saudi authorities and may change: we confirm them in writing before you commit to anything.
See also
Plan your Saudi hires before you register the company
In a free 30-minute call, we look at your activity, the team you plan for year one and year three, and how many Saudis you need to keep access to visas. Written proposal, public fees passed on at cost, Nitaqat band decided by the ministry.
- Free 30-minute first call
- Reply within one business day
- No commitment