HR & Labor Law

Saudization (Nitaqat) 2026: Calculate Your Compliance Ratio

Nitaqat classifies your business from Platinum to Red. Learn how to calculate and improve your percentage.

Published April 22, 202610 minPro Master Editorial
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Saudization (Nitaqat) 2026: Calculate Your Compliance Ratio

Nitaqat is the Saudi government's Saudization program that requires businesses to employ a minimum percentage of Saudi nationals. Your compliance tier determines everything from your ability to hire expats to government contract eligibility.

The Four Nitaqat Tiers

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Platinum🟣Exceeds requirement by 50%+
Green🟢Meets or exceeds requirement
Yellow🟡Below requirement (warning zone)
Red🔴Non-compliant

How Saudization Percentage is Calculated

Saudization % = (Number of Saudi employees ÷ Total employees) × 100

But it's not just about headcount — there are important rules:

  • Part-time Saudis count as 0.5
  • Saudis working less than the minimum legal hours may not count
  • Female Saudi employees in certain sectors receive enhanced weighting

Required Percentages by Sector (2026)

SectorRequired %
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Construction6%
Retail (General)15%
Retail (Automotive)35%
IT & Communications15%
Financial Services10%
Healthcare35%
Hospitality10%
Education35%

*Percentages vary by company size and activity. Always verify with Qiwa.*

Calculating Your Ratio — Step by Step

  1. Log into Qiwa Platform (qiwa.sa)
  2. Go to Nitaqat section
  3. Your current ratio is displayed automatically
  4. Download the employee breakdown report

Manual Calculation:

  • Total employees in GOSI: 45
  • Saudi employees: 8
  • Saudization % = (8 ÷ 45) × 100 = 17.8%

Consequences of Red Zone

If you're in Red tier:

  • Cannot issue new work visas
  • Cannot renew existing work visas
  • Cannot bid on government contracts
  • Cannot open new branches
  • Block on expanding business activities

Strategies to Improve Your Ratio

Short-term

  1. Hire Saudi nationals in entry-level positions
  2. Convert part-time Saudis to full-time
  3. Register trainees in Tamheer or Taqat programs

Medium-term

  1. Partner with HRDF for training subsidies
  2. Apply for Saudization exemptions for specialized roles
  3. Use On-Job Training contracts (OJT)

Exempt Roles

Some positions are exempt from Saudization requirements:

  • Roles requiring specific national certifications not available to Saudis
  • Roles where the company has applied and received a specific exemption
  • Certain executive positions in small companies

Monitoring Your Compliance

Check your Nitaqat status monthly on Qiwa. The system updates automatically based on GOSI data. Never assume you're compliant — check regularly.

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