Nitaqat and Saudization, explained for small companies
Nitaqat is the system that rates every Saudi private company on how many Saudis it employs. Your band decides whether you can get visas, transfer staff and renew permits. Here is how it works and how to stay out of red.
The short answer
HRSD sets a Saudization rate for each economic activity and company size. Your actual rate, measured over recent weeks, places you in a band: Platinum, High Green, Medium Green, Low Green or Red. Green and Platinum keep Qiwa services open; Red blocks most of them.
Under the developed Nitaqat that applies through 2026, only employees with a documented contract in Qiwa and active GOSI registration count.
The bands
| Band | What it means |
|---|---|
| Platinum | Well above target: the widest access to services and the fastest processing |
| High, Medium and Low Green | Compliant: visas, transfers and renewals within limits that tighten from High to Low |
| Red | Below target: no new visas or renewals for expats, and expats can transfer out without the employer’s consent |
Very small companies (under a set headcount) usually need at least one Saudi, often the owner, registered in GOSI.
How Saudis are counted
- A Saudi counts fully when paid at least the minimum wage HRSD sets for Nitaqat (SAR 4,000 a month at the time of writing); lower wages count partially
- The employee must have a Qiwa contract and be registered with GOSI under your establishment
- Some groups count extra, such as Saudis with disabilities; students and part-time workers count partially
- The rate is a weighted average over recent weeks, so a hire this week moves the band gradually
The developed Nitaqat
HRSD’s developed Nitaqat sets a gradual path of rising rates and replaces fixed company-size bands with a formula linked to headcount. Check your target in Qiwa: it shows your current rate, band and what it takes to move up.
Staying green
- Check your band in Qiwa every month, not just when you need a visa
- Keep contracts documented in Qiwa and GOSI records current for every employee
- Plan Saudi hires before expanding the expat headcount
- Use HRDF (Hadaf) programmes to support Saudi wages and training
- Avoid fake Saudization: HRSD audits it and the fines are heavy
Sources
- Ministry of Human Resources and Social Development (HRSD): Labor Law
- Qiwa: Nitaqat and Saudization services
Rules change. Check the official text, or ask your accountant or lawyer, before you rely on a figure.
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