Saudization (Nitaqat) & Employment Priority
Written in plain language for general understanding. This is educational content, not legal advice. Based on Saudi royal decrees, regulations, and ministerial decisions.
Saudi National Law
What is this right?
Saudi Arabia requires private sector companies to hire a minimum percentage of Saudi nationals through the Nitaqat (Saudization) programme:
- Colour-coded bands: Companies are classified as Platinum, Green (high/medium/low), Yellow, or Red based on their Saudi employee ratio.
- Green and Platinum companies get benefits like easier visa processing and employee transfers.
- Yellow and Red companies face restrictions — they cannot get new work visas, renew existing ones, or open new branches.
- Sector-specific rules: Some sectors and job roles are reserved exclusively for Saudi nationals (e.g., HR roles, certain retail positions, security guard roles).
- Salary threshold: A Saudi employee must earn at least SAR 4,000/month to count toward the Nitaqat quota.
This system gives Saudi nationals priority in the job market while still allowing companies to hire foreign workers within limits.
When does it apply?
- You are a Saudi national looking for work — employers have a legal incentive to hire you.
- You are an expatriate worker — your employer must maintain Nitaqat compliance to keep your visa active.
- You are a business owner — you must meet Nitaqat ratios for your sector and company size.
What should you do?
- Saudi job seekers: Check the MHRSD portal for jobs in Saudized sectors where employers must hire nationals.
- Verify your employer's Nitaqat status — a Red or Yellow company may face visa freezes that affect your job security.
- If you are a Saudi employee and your employer is paying you below SAR 4,000 while counting you for Nitaqat, report it to MHRSD.
What should you NOT do?
- Do not participate in fake Saudization — registering as an employee but not actually working is a criminal offence for both the worker and employer.
- Do not ignore your employer's Nitaqat colour — a Red company may not be able to renew your visa or transfer your sponsorship.
- Do not assume all jobs are open to expatriates — check whether the role is in a Saudized category first.
Legal Resources
We may earn a commission if you use these services — at no extra cost to you. This supports our mission to make legal information free for everyone.
LawDepotCreate employment contracts, demand letters, and workplace documents in minutes. State-specific templates reviewed by lawyers.Create Business Documents →LegalNatureCreate employment agreements, NDAs, and workplace policy documents online. Attorney-drafted templates customized to your state.Create Documents →LegalZoomSend a demand letter or consult an employment attorney online. Fast, affordable, and no office visit required.Get Legal Help →