What Is Nitaqat? Requirements & Resources To Stay Compliant
What Is Nitaqat? Requirements & Resources To Stay Compliant
In Saudi Arabia, hiring foreign workers involves navigating a range of regulations. You must not only prepare the employee’s documents and confirm their eligibility to work in the Kingdom, but also comply with Nitaqat. This Saudisation programme sets quotas for the number of Saudi nationals that organisations must employ, based on their size and sector. If you're unsure where to begin or would like to learn more about Nitaqat, this article provides an overview. We’ll outline the programme’s requirements, explain its impact on foreign workers, and highlight resources to support compliance.
Cercli’s HR platform helps streamline your international hiring process, including compliance with local regulations such as Nitaqat. Our customisable platform enables you to manage employee documents, track onboarding milestones, and meet local requirements before arrival in Saudi Arabia.
What is Nitaqat, and Why Does it Matter?
Nitaqat is a classification system developed by the Ministry of Human Resources and Social Development in Saudi Arabia to encourage the employment of Saudi nationals in the private sector. Its core aim is to reduce unemployment among Saudi citizens by establishing minimum Saudisation targets for companies based on their size and sector.
Under the Nitaqat programme, businesses are grouped into categories based on how well they meet or exceed the required percentage of Saudi employees:
- Platinum
- Green (high, medium, low)
- Red
These classifications directly affect a company’s access to government services, such as:
- Visa issuance
- Work permit renewals
- Changes to job titles or roles
How Nitaqat Classification Works
Platinum
Platinum companies have the highest levels of Saudisation. They receive benefits such as priority access to government services, the ability to apply for new visas, and increased flexibility in employment matters.
High Green
High Green companies meet the required Saudisation targets for their category. These businesses may apply for new visas (subject to quota availability), renew work permits, and request changes to approved job roles.
Medium Green and Low Green
Medium Green and Low Green companies remain compliant but are subject to more restrictions compared to higher tiers. Red zone companies are considered non-compliant and face the most serious consequences. These businesses cannot issue new work visas, renew permits, or change professions, and may face further administrative penalties.
How Company Size and Sector Affect Saudisation Quotas
Company size and sector significantly influence the Saudisation targets required under Nitaqat. Larger companies or those in strategically important industries tend to have higher quota requirements.
For example, sectors such as healthcare, engineering, accounting, and dentistry are subject to higher targets, particularly under the 2025 updates.
Recent Updates to Saudisation in 2025
As part of Saudi Arabia’s Vision 2030, the government continues to expand the scope of the Nitaqat programme.
- Dentistry: Clinics with three or more dental professionals must meet a 45% Saudisation rate from 27 July, increasing to 55% by 27 January 2026.
- Engineering: Firms with five or more engineers must meet a 30% Saudisation requirement starting 27 July.
- Accounting: Businesses with at least five accountants are required to meet a 40% Saudisation target, effective from 27 October, with an annual increase of 10% until 2028.
- Pharmacies and Hospitals: Hospitals must meet a 65% target as of 27 July, community pharmacies a 35% target, and other pharmacy-related businesses a 55% target.
Expanded Eligibility and Adjustments to Saudisation Calculations
In addition to revised quotas, the MHRSD has introduced several changes aimed at supporting compliance and providing additional options for employers:
- Foreign Investor Classification: As of April 2024, foreign investors owning private businesses in Saudi Arabia are treated as Saudi nationals for Saudisation calculations.
- Remote Worker Inclusion: Saudi employees working remotely are now included in a company’s Saudisation quota.
- Partial Credit for Specific Nationalities: Palestinians with Egyptian passports and individuals of Baloch ethnicity are now partially exempt from compliance. For example, four Baloch workers are considered equivalent to one foreign worker in quota calculations.
Nitaqat’s Role in Long-Term Workforce Localisation
These adjustments reflect Saudi Arabia’s ongoing efforts to align private sector growth with national employment objectives. The Nitaqat programme remains a key part of this strategy, promoting long-term workforce localisation while providing clear guidelines for business compliance.
Practical HR Tools Built for Businesses in Saudi Arabia and Beyond
Cercli supports HR operations in line with the UAE’s commitment to efficient, business-friendly practices. Cercli is designed for MENA businesses, bringing together key workforce management functions in a single platform. Manage your team, whether local or international, with the ability to process payments in more than 150 countries.
Cercli covers multi-currency payroll, leave tracking, onboarding, and compliance documentation, all aligned with the needs of the MENA market.
Centralised HR Management for Regional and Remote Teams
Cercli reduces the need for multiple disconnected systems by offering a centralised platform that helps businesses stay compliant and manage their workforce more efficiently.
Whether managing a team of 25 or coordinating 500 employees across different countries, Cercli offers localised expertise and practical tools to support remote workforce management across the MENA region.
Explore an HR platform tailored to how businesses operate across the Middle East. Arrange a demonstration to learn more about Cercli’s global HR system.
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Compliance Requirements for Businesses
Understanding Saudisation Compliance for Businesses in Saudi Arabia
The Saudisation, or Nitaqat, programme aims to increase employment of Saudi nationals in the private sector and reduce reliance on foreign workers. Compliance with Saudisation requirements in Saudi Arabia involves more than meeting a basic quota.
Businesses must navigate a structured system that varies depending on their:
- Size
- Sector
- Workforce composition
Saudisation Quotas by Sector (2025)
These requirements form part of the Kingdom’s broader goal of increasing national employment and building a sustainable labour market. There is no universal ratio of Saudi to non-Saudi employees; instead, each sector has its own Saudisation threshold.
For example, retail businesses operating in large shopping centres or major retail hubs are generally expected to maintain a Saudisation rate of at least 50% to qualify for Green or Platinum Nitaqat classifications. In contrast, the construction industry typically has a lower requirement, ranging from 10% to 30%, depending on the nature of the work and company size.
Meeting Reporting Requirements
Employers are responsible for ensuring they meet their industry’s specific targets. This includes hiring the required number of Saudi nationals and reporting workforce data accurately through platforms such as Qiwa and the General Organisation for Social Insurance (GOSI).
These systems track employee status and company compliance in real time, meaning that any inconsistencies in reporting can lead to classification downgrades or administrative penalties.
Maintaining Accurate Employee Records
Maintaining compliance also requires keeping employee records up to date.
This includes:
- Salaries
- Job titles
- Employment status
- Contract types
Regular monitoring of Saudisation performance helps employers identify any shortfalls and take corrective action before facing restrictions, such as an inability to renew visas or bid on government contracts.
Adapting to Evolving Saudisation Requirements
As requirements evolve, particularly in sectors with rising Saudisation targets, HR teams must stay informed and respond quickly. Regular audits of workforce data and alignment with the Ministry of Human Resources and Social Development’s (MHRSD) systems are central to avoiding disruptions to business operations and ensuring continued access to essential government services.
Scalable HR Solutions for MENA-Based Businesses
Cercli is designed for companies in the Middle East who need a flexible, compliant, and reliable way to manage their workforce, whether teams are local, remote, or spread across multiple countries.
Built for the realities of doing business in the region, Cercli helps companies in the UAE, Saudi Arabia, and across MENA simplify HR operations, stay fully compliant with local regulations, and run payroll with confidence. From managing WPS (Wage Protection System) registrations in the UAE, processing GOSI in Saudi, handling DEWS contributions, and ensuring contracts and benefits are fully compliant, Cercli takes the complexity out of regional payroll and HR.
As companies increasingly hire remote employees, contractors, and global teams, Cercli provides full support for global workforce management. Companies can pay contractors or full-time employees in over 150 countries through multicurrency payroll, Employer of Record (EOR) services, and compliant international contracts, all through a single platform.
Cercli gives HR teams a centralised system to manage every part of the employee lifecycle: onboarding, asset management, leave tracking, time off calendars, payroll processing, and offboarding. With one source of truth for all employee data, companies can eliminate manual processes, reduce payroll errors, and ensure full visibility across the entire organisation.
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Consequences of Non-Compliance with Saudization Targets
The Risks of Non-Compliance with Saudisation Targets
Companies that do not comply with Saudisation regulations in Saudi Arabia may face a range of consequences. The Ministry of Human Resources and Social Development (MHRSD) enforces these measures to support private sector alignment with national employment goals.
Restrictions on Expatriate Workforce Management
One of the most immediate impacts of not meeting Saudisation targets is the restriction on issuing new work visas and renewing existing ones for expatriate workers. Firms that are not compliant with Saudisation regulations may be unable to hire new foreign workers or retain their existing non-Saudi workforce.
Businesses in non-compliant categories are barred from changing the occupations of their expatriate employees or transferring those employees’ sponsorship to the company.
Financial Penalties for Non-Compliance
There are also financial implications for failing to meet Saudisation targets. The MHRSD may impose fines and administrative penalties on companies that fail to adhere to their quota obligations or maintain inaccurate workforce records. These penalties vary depending on the severity and frequency of the non-compliance.
Operational Impacts of Non-Compliance
The effects of non-compliance extend beyond HR operations. Companies that fail to meet Saudisation requirements may be ineligible to apply for or renew work permits and may face restrictions on opening new branches within the Kingdom. This can limit business growth and expansion, particularly for companies seeking to expand their presence in Saudi Arabia.
Impact on Government Engagement and Opportunities
Non-compliance can affect a company’s relationship with government entities. Businesses that fall into the lower Nitaqat categories (such as Yellow or Red) may lose eligibility to participate in government tenders or benefit from public sector contracts.
This may limit market access and reduce opportunities to engage with public sector initiatives in Saudi Arabia’s expanding economy.
Aligning HR Operations with Regional Compliance Standards
To avoid these disruptions, businesses must ensure ongoing compliance with Saudisation targets, maintain accurate employee data, and respond proactively to any regulatory updates issued by the MHRSD.
Cercli is designed for companies in the Middle East who need a flexible, compliant, and reliable way to manage their workforce, whether teams are local, remote, or spread across multiple countries.
Built for the realities of doing business in the region, Cercli helps companies in the UAE, Saudi Arabia, and across MENA simplify HR operations, stay fully compliant with local regulations, and run payroll with confidence. From managing WPS (Wage Protection System) registrations in the UAE, processing GOSI in Saudi, handling DEWS contributions, and ensuring contracts and benefits are fully compliant, Cercli takes the complexity out of regional payroll and HR.
As companies increasingly hire remote employees, contractors, and global teams, Cercli provides full support for global workforce management. Companies can pay contractors or full-time employees in over 150 countries through multicurrency payroll, Employer of Record (EOR) services, and compliant international contracts, all through a single platform.
Cercli gives HR teams a centralised system to manage every part of the employee lifecycle: onboarding, asset management, leave tracking, time off calendars, payroll processing, and offboarding. With one source of truth for all employee data, companies can eliminate manual processes, reduce payroll errors, and ensure full visibility across the entire organisation.
Tools and Resources to Manage Nitaqat Compliance
To manage Nitaqat compliance effectively, businesses in Saudi Arabia must use digital tools that support:
- Ongoing monitoring
- Accurate reporting
- Efficient workforce planning
The Qiwa platform, operated by the Ministry of Human Resources and Social Development (MHRSD), is a key resource for employers.
Tools for Tracking Nitaqat Classification and Quotas
It enables companies to view their Saudisation status in real-time, access key workforce services, and manage employee-related transactions. Through Qiwa, employers can also access the official Nitaqat calculator, which helps them understand how different hiring decisions affect their classification.
The calculator considers company size, sector, and workforce composition to provide a current compliance rating, enabling businesses to adjust their staffing plans as needed.
Supporting Regional Compliance Through Integrated HR Systems
In addition to government platforms, HR software plays a crucial role in ensuring compliance. Cercli is an example of a platform designed to support the workforce management needs of businesses across the MENA region. Cercli supports both local and international teams.
It includes tools for:
- Managing multi-currency payroll
- Onboarding
- Leave policies
- Documentation
They are all aligned with the region’s legal and regulatory requirements. By consolidating these processes into a single system, Cercli helps companies:
- Reduce errors
- Maintain accurate employee records
- Remain audit-ready
Together, these resources help organisations navigate the complexities of Saudisation more effectively. By utilising government tools such as Qiwa, alongside platforms like Cercli, employers can stay aligned with national requirements, avoid penalties, and manage hiring in a manner that supports long-term compliance and continuity.
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Book a Demo to Speak with Our Team about Our Global HR System
Cercli is built for companies in the Middle East to manage their entire workforce, whether local or spread across 150+ countries, all in one platform. Run fully compliant payroll across the UAE, Saudi Arabia, and the wider MENA region, manage leave, onboard employees, track assets, and handle global contractor payments in multiple currencies with ease.
Whether you’re managing 25 employees or scaling to 500+ across multiple markets, Cercli combines deep local expertise with global capabilities, giving your HR team one simple, compliant system to run operations and pay your workforce anywhere.
Book a demo to see how Cercli helps MENA companies simplify HR, payroll, and global team management and stay fully compliant every step of the way.
