Saudization requires private sector companies in Saudi Arabia to employ a minimum percentage of Saudi nationals. The Nitaqat programme classifies companies into colour-coded bands based on their Saudization ratio, which directly affects their ability to issue new work visas and renew existing ones.
What is Saudization?
Saudization is Saudi Arabia's labour nationalisation policy, requiring private sector employers to maintain a minimum percentage of Saudi national employees. The target percentage varies by sector and company size, and is enforced through the Nitaqat programme.
The policy has been progressively expanded since its introduction, with new roles and sectors being localised regularly. Certain professions are now fully reserved for Saudi nationals.
How Nitaqat works
Nitaqat classifies companies into bands based on their Saudization ratio: Platinum (exceeded targets), Green (meeting targets), Yellow (below targets), and Red (significantly below targets). The band directly determines what the company can do: Platinum and Green companies can issue new visas, transfer employees, and operate freely. Yellow companies face restrictions on new visa issuance. Red companies cannot issue new visas, cannot transfer employees from other companies, and face additional penalties.
The classification is dynamic — it updates as employee records change. Adding Saudi nationals or losing them immediately affects the band.
Impact on EOR operations
When you hire through an EOR in Saudi Arabia, your employees count toward the EOR entity's Nitaqat ratio — not yours. This means the EOR's Nitaqat band determines whether new visas can be issued for your hires.
Reputable EOR providers maintain healthy Nitaqat bands (Green or Platinum) to ensure visa availability. Before engaging an EOR in Saudi Arabia, confirm their current Nitaqat status and whether they anticipate any quota pressure that could delay your hires.
GlobalKinect actively manages our Saudi entity's Nitaqat band and will disclose our status during the proposal stage.
Sectors with full localisation
Saudi Arabia has progressively reserved certain roles for nationals only. As of 2026, fully localised roles include: HR positions, certain sales and marketing roles, accounting and finance roles in specific sectors, government relations, and reception and customer service in certain industries.
The list expands regularly. EOR providers must track these changes and advise clients when a planned hire falls into a localised category. In those cases, the role must be filled by a Saudi national — no visa will be issued for an expat.
Cost implications
Saudization affects costs in two ways. First, the expat levy — companies that fall below their Saudization targets may face additional fees per expatriate employee. Second, Saudi national employees typically command higher salaries than expatriate equivalents for the same role, and they have additional statutory entitlements (higher GOSI rates, unemployment insurance).
Our Saudi Arabia calculator includes Saudization-related cost factors so you can model the full employer cost for both national and expatriate hires.