The company needs ten new employees. The budget is ready. Department managers want the vacancies advertised immediately. Before recruitment begins, the HR manager checks Qiwa, the government platform used to manage employment information and contracts.
The company is currently at a Green Nitaqat level. However, recruiting ten more people could change the number of Saudi employees the company needs. The vacancies are still necessary. The company simply needs to plan before hiring. This is how Saudization affects everyday HR decisions. It is not just a percentage that we check at the end of the year. It can influence recruitment, employee records, company growth, and workforce planning.
Four terms we need to understand
Before we continue, here are four important terms.
Saudization: Employing and developing more Saudi citizens in private sector jobs.
Nitaqat: The government program that measures a company’s Saudization performance.
Qiwa: The government platform where companies manage employment information and contracts.
HRSD: The Ministry of Human Resources and Social Development. It manages Saudi labor policies and programs such as Nitaqat.
What is Saudization?
Saudization is the national effort to increase the number of Saudi citizens working in private sector companies. It is also called Tawteen. The purpose is not simply to add Saudi employees to a company’s records. It is to create meaningful jobs, develop local skills, and provide long term career opportunities for Saudi men and women.
Saudization requirements are not the same for every company. They can change according to:
- The type of business
- The number of employees
- The professions within the company
- Specific government decisions covering certain jobs
A hospital, retail business, construction company, and technology company may therefore have different requirements.
What is Nitaqat?
Nitaqat is the program used by HRSD to measure a company’s Saudization performance. It looks at information such as:
- The company’s type of business
- The total number of employees
- The number of Saudi employees who meet the counting rules
- Employment information recorded in official systems
- The Saudization requirements that apply to the company
The company is then placed within a Nitaqat level.
The main levels are:
- Platinum
- High Green
- Medium Green
- Low Green
- Red
A higher level normally means the company has achieved stronger Saudization results. A lower level may affect access to some Ministry services. The exact effect depends on the company’s situation and the current rules.
Are Saudization and Nitaqat the same?
No, but they are closely connected. Saudization is the wider goal of increasing Saudi employment. Nitaqat is the program that measures how well a company is working toward that goal.
Saudization is the goal. Nitaqat shows the company’s progress.
Why hiring ten people can change the result
Let us return to the company that needs ten new employees. It currently has fifty employees. After recruitment, it will have sixty. That change may affect its Nitaqat requirement because the expected number of Saudi employees can depend on both the type of business and the total number of workers. There is no single Saudization percentage for every company in Saudi Arabia. HRSD provides an official Nitaqat calculator. It uses the company’s type of business, total workforce, and number of Saudi employees to estimate its position. www.hrsd.gov.sa. Before recruitment begins, the HR manager should use the calculator to understand how the additional employees could affect the company. This does not mean the company should stop hiring. It means the company should plan its recruitment properly.
One calculation may not be enough
The HR manager checks the Nitaqat calculator and reviews the expected result. Is the work complete? Not yet. Some professions have their own Saudization rules. These rules may apply in addition to the company’s general Nitaqat requirement. A company could have a suitable overall Nitaqat level but still have a problem within a specific profession.
Separate rules may cover areas such as:
- Sales
- Marketing
- Accounting
- Engineering
- Health care
- Project management
- Administrative support
For example, increased Saudization requirements for sales and marketing professions became effective on 19 April 2026. The decisions included conditions related to company size, covered jobs, and salary requirements.
Before advertising a job, HR should ask:
- Is this job covered by a separate Saudization rule?
- What percentage is required?
- Does the rule apply to a company of our size?
- Is there a minimum salary?
- When did the rule become effective?
The answers should come from the latest HRSD guide. We should not depend on an old presentation, social media post, or another company’s information.
Then HR discovers a missing contract
While checking the records, the HR manager finds another issue. One Saudi employee is working normally. The employee receives a salary, appears in the internal HR system, and has an employee file. However, the employment contract has not been properly recorded through Qiwa. This can affect how the employee is counted. From 15 April 2026, Nitaqat calculations began using employment contracts recorded electronically through Qiwa. HRSD states that contract documentation is necessary for Saudi employees to be included in the Saudization calculation.
Hiring a Saudi employee is therefore only the beginning.
The company must also make sure that:
- The contract is recorded through Qiwa
- The job title is correct
- The salary information is accurate
- The employment status is current
- Joining and leaving dates are correct
- Internal and government records match
A company spreadsheet may show one result, while Qiwa shows another. When that happens, HR should investigate the difference immediately.
Why 2027 requires early planning
The new phase of the updated Nitaqat program began in 2026 and will continue for three years. HRSD says this phase aims to localize more than 340,000 additional private sector jobs for Saudi men and women. For companies, this means that workforce planning will become even more important during 2027.
HR teams should look ahead and ask:
- How many employees will we recruit?
- Which departments will grow?
- Which Saudi employees may leave or retire?
- Are any professions covered by new rules?
- Do we have Saudi candidates for future positions?
- Which employees could be trained for larger roles?
- Are all employee contracts and records complete?
- These questions help us prepare before a problem appears.
Want to connect recruitment, workforce planning, and business goals? Explore Blue Ocean Academy’s Mastering Strategic HR program.
Saudization should create real careers
Reaching the required number is important, but good Saudization planning should not end with recruitment. Saudi employees need opportunities to learn, perform, and grow.
Companies can support them through:
- Clear job responsibilities
- Proper orientation and training
- Support from managers
- Fair performance reviews
- Career development plans
- Opportunities for promotion
- Recognition for good work
Hiring someone only to improve a number may solve a short term problem. Developing that person can create long term value for both the employee and the company.
HR should therefore ask two questions:
Are we meeting the Saudization requirement?
Are we creating careers that Saudi employees want to continue?
Both questions matter.
A simple monthly check for HR
Nitaqat does not need to become a large project every month. A short monthly review can help the company stay prepared.
Step 1: Check Qiwa
Review the company’s current information and Nitaqat level.
Step 2: Compare employee records
Make sure the information in Qiwa matches the company’s internal HR system.
Step 3: Review recent changes
Check new employees, resignations, transfers, and contract updates.
Step 4: Look at future recruitment
Study how planned hiring may change the workforce size and Saudization requirement.
Step 5: Check new HRSD announcements
Look for decisions covering the company’s industry or professions.
Step 6: Inform management
Explain any possible risk in clear business language. Do not wait until recruitment or government services are affected.
The recruitment plan can now move forward
The HR manager returns to the ten vacancies. The company still needs the employees. The difference is that the team now understands how the recruitment plan may affect its Nitaqat level. The team checks the rules for each profession. It corrects the missing contract. It reviews the expected number of employees and includes Saudi candidates in the recruitment plan. The ten vacancies are no longer treated as separate hiring requests. They are part of the company’s wider workforce plan. That is the practical meaning of Saudization for HR teams.
We need to understand where the company stands, know where it plans to go, and prepare the people it will need in the future.
Build stronger workforce plans with the Mastering Strategic HR program.
Frequently Asked Questions
What is Saudization?
Saudization is the national effort to increase the employment and career participation of Saudi citizens in private sector companies.
What is Nitaqat?
Nitaqat is the government program that measures a company’s Saudization performance and places it within a level.
Does every company need the same percentage of Saudi employees?
No. The requirement can depend on the type of business, number of employees, and any separate rules covering specific professions.
What is Qiwa?
Qiwa is a Saudi government platform used by companies to manage employment information, contracts, and other workforce services.
Why must Saudi employment contracts be recorded through Qiwa?
From 15 April 2026, employment contracts recorded through Qiwa became important for including Saudi employees in Nitaqat calculations. www.hrsd.gov.sa
How often should HR check the company’s Nitaqat level?
A monthly review is useful. HR should also check before major recruitment, expansion, restructuring, or employee departures.
