Saudization (Nitaqat) & Employment Priority in Saudi Arabia

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Source: Royal Decree No. M/51 (Labour Law), Articles 26-28; Nitaqat Programme (MHRSD); Ministerial Decisions on Saudization of Specific Sectors; HRDF/Hadaf Programmes

Reviewed by the Commoner Law Editorial Team. Sourced from Saudi royal decrees, regulations, and ministerial decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards

Saudi National Law

What is this right?

The Nitaqat programme is the most aggressive nationalisation scheme in the Gulf — it goes far beyond simple quotas by tying an employer's ability to operate directly to their Saudi hiring ratio:

  • Colour-coded bands: Every private-sector company is classified as Platinum, Green (high/medium/low), Yellow, or Red based on its Saudi employee percentage.
  • Platinum and Green: Full access to government services — easier visa processing, employee transfers, new branch openings, and access to government contracts.
  • Yellow: Restricted — cannot get new work visas, limited ability to renew existing permits.
  • Red: Severely restricted — cannot hire any new foreign workers, cannot renew existing work permits, cannot open new branches, and cannot change worker activities. Workers at Red companies risk having their visas lapse.
  • Sector-specific Saudization: Certain roles are reserved exclusively for Saudi nationals — HR departments, government relations officers, certain retail positions (e.g., jewellery, eyewear, electronics), mall security guards, and more.
  • 2025-2026 profession-specific quotas with minimum-wage anchors: MHRSD has moved beyond generic colour bands into hard profession floors. Dentistry: 45% from 27 July 2025; 55% from 27 January 2026 (M.R. 103107), SAR 9,000 minimum wage. Pharmacy: 35% community / 65% hospital / 55% other (M.R. 103111, from 27 July 2025). Engineering (46 technical professions): 30% from 27 July 2025 with SAR 5,000 floor. Accounting (44 professions): 40% from 27 Oct 2025, phased to 70% by 27 Oct 2028 (SAR 6,000 degree / SAR 4,500 diploma). Procurement: 70% from 31 Nov 2025. Marketing & Sales: 60% from 19 Jan 2026 (full enforcement 19 Apr 2026), SAR 5,500 marketing floor. The 2026-2028 plan targets 340,000 new Saudi jobs.
  • Salary threshold: A Saudi employee must earn at least SAR 4,000/month to count as a full Nitaqat unit (higher in the profession-specific decisions above). Part-time Saudis at SAR 3,000+ count as one-third.
  • HRDF (Hadaf) subsidies: The Saudi Human Resources Development Fund subsidises Saudi employee salaries (often 30-50% for the first 2 years) and provides free training through Tamheer and Doroob programmes.

When does it apply?

  • You are a Saudi national looking for work — employers in Saudized sectors have a legal obligation to hire you.
  • You are an expatriate worker — your employer's Nitaqat colour directly affects your visa security.
  • You are a business owner — you must meet Nitaqat ratios to maintain operational licences.

What to Do If Your Employer's Nitaqat Status Threatens Your Visa or You Suspect Fake Saudization

  • Saudi job seekers: Check the Jadarat platform (jadarat.sa) and the MHRSD portal for jobs in Saudized sectors.
  • Verify your employer's Nitaqat colour through the Qiwa platform — a Red or Yellow company poses real risks to your visa and job security.
  • If you are a Saudi employee being paid below SAR 4,000 while your employer claims you for Nitaqat, report it to MHRSD (19911) — this is fake Saudization.
  • Saudi job seekers: Check if you qualify for HRDF salary subsidies through Hadaf (hrdf.org.sa) — the fund may cover a significant portion of your salary for the first two years.

What should you NOT do?

  • Do not participate in fake Saudization (tawteen wahmi): Registering as an employee without actually working is a criminal offence. Both the worker and employer face fines up to SAR 200,000, prison, and permanent blacklisting.
  • Do not ignore your employer's Nitaqat colour — if they drop to Red, they cannot renew your visa, and you may need to transfer quickly.
  • Do not assume all jobs are open to expatriates — check the Saudization list for your sector and role before accepting an offer.

Common Questions

When does it applysaudization (nitaqat) & employment priority?

You are a Saudi national looking for work — employers in Saudized sectors have a legal obligation to hire you.You are an expatriate worker — your employer's Nitaqat colour directly affects your visa security.You are a business owner — you must meet Nitaqat ratios to maintain operational licences.

What should I do if my employer is in the Red Nitaqat band and my visa is at risk in Saudi Arabia?

Saudi job seekers: Check the Jadarat platform (jadarat.sa) and the MHRSD portal for jobs in Saudized sectors.Verify your employer's Nitaqat colour through the Qiwa platform — a Red or Yellow company poses real risks to your visa and job security.If you are a Saudi employee being paid below SAR 4,000 while your employer claims you for Nitaqat, report it to MHRSD (19911) — this is fake Saudization.Saudi job seekers: Check if you qualify for HRDF salary subsidies through Hadaf (hrdf.org.sa) — the fund may cover a significant portion of your salary for the first two years.

What should you NOT dosaudization (nitaqat) & employment priority?

Do not participate in fake Saudization (tawteen wahmi): Registering as an employee without actually working is a criminal offence. Both the worker and employer face fines up to SAR 200,000, prison, and permanent blacklisting.Do not ignore your employer's Nitaqat colour — if they drop to Red, they cannot renew your visa, and you may need to transfer quickly.Do not assume all jobs are open to expatriates — check the Saudization list for your sector and role before accepting an offer.

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