How the Nitaqat (Saudization) Program Works
Discover how Saudi Arabia's Nitaqat program affects your workforce strategy in 2025.
What is Saudization?
A key component of Vision 2030, the Saudization (Nitaqat) Program is a national policy aimed at increasing participation of nationals in the workforce. This workforce nationalization scheme mandates that foreign companies setting up a business in Saudi Arabia hire a specific number of nationals based on a quota system. The required quotas vary depending on the company's size and the industry or activity in which it is setting up.Compliance is essential for obtaining the Saudization certificate, which is a prerequisite for companies aiming to bid on governmental projects.
Saudization Certificate and Compliance Categories
What is the Saudization Certificate?
The Saudization Certificate is an official document issued by the Ministry of Human Resources and Social Development (HRSD) that validates a company's compliance with the Saudization requirements. The Saudization system uses six distinct zones to classify companies based on their compliance with mandatory hiring quotas. These categories include Platinum, High Green, Mid Green, Low Green, Yellow, and Red.
When Companies Need it
• Bidding on government projects and tenders • Seeking private sector contracts • Applying for additional work visa quotas for non-Saudi employees• Renewing its commercial registration (CR) • Requiring access to Ministry of Labor (MOL) and HRSD services
How to Obtain the Saudization Certificate
1. Achieve the required Saudization percentage for your sector2. Submit your application and all necessary documents through the Qiwa portal3. Submit employee data and payroll records4. Pay fees and await the HRSD’s approval5. Once verified, the Saudization certificate is issued
Key Considerations for Global Companies
A Saudi employee with a salary less than SAR 4,000 is counted as only 0.5 person towards the Saudization quota
Employing 1 person with a disability counts as 4 persons towards the Saudization quota
All GCC nationals are counted towards the Saudization quota as Saudi nationals
A Saudi employee who is registered under two companies is counted towards the first company's quota only.
There are no differences in hiring quotas for women and men; both are counted equally towards the Saudization quota.
Saudization Rules and Requirements for Companies Setting Up a Business in the KSA
Company Size Requirements
• Small companies (up to 5 employees): Minimum 1 Saudi national• Medium-sized companies (6-100 employees): Varies by sector• Large-sized companies (100+ employees): Minimum 30% Saudization rate
Non-Compliance Consequences
• Blocked visa quotas for foreign workers• Inability to renew Iqamas and other licenses• Disqualification from participating in government tenders• Fines and operational restrictions• Limited access to MoL services
AstroLabs Advantage
| Offering | AstroLabs | Corporate Services Companies offering PRO & GRO | Law Firms | In-House |
|---|---|---|---|---|
| 40+ on-ground local team of experts |  |  | | |
| Government portal management and compliance support | | | | |
| Full management of your company licenses and certificates | | | | |
| Management of registered employees across the employee journey, from hiring to ongoing management | | | | |
| Full suite of support: PRO, GRO, HRs support and access to a pool of Saudi talent | | | | |
| National Address Registration with varied coworking and private office locations | | | | |
| Seamlessly manage GRO services online using a digital platform | | | | |
| Corporate bank account opening | | | | |
| Access to a community of 700+ high-growth businesses in Saudi Arabia | | | | |
| Extended media and exposure support through press releases, social media coverage and articles | | | | |
| Opportunity-matchmaking with potential partners in governmental entities and corporates | | | | |
| Access to global and regional events such as BIBAN, LEAP, Seamless, etc | | | | |