Understanding the Latest Saudization Updates in Saudi Arabia

Saudi Arabia introduced important Saudization updates in April 2026, and many foreign companies may not realize how these changes can directly affect their Nitaqat classification.

The key issue is simple: your company status can change even if your headcount stays the same.

Here are the most important updates businesses should understand:

Qiwa Contract Registration Now Matters More

Saudi employees only count toward Saudization targets if their contracts are properly registered on Qiwa.

Even a single missing or incomplete employment contract may prevent an employee from being counted in the Nitaqat system, potentially impacting the company’s compliance status and overall rating.

Profession-Based Quotas Are Becoming Critical

Saudization percentages are now tied closely to the profession listed on the employee’s Iqama not just the internal job title.

For example:

• Sales roles may require 60% Saudization.
• Marketing roles may require 60% Saudization.
• Procurement roles may require 70% Saudization.

A company can still hold a strong overall Nitaqat rating while remaining non-compliant within a specific department.

Why This Matters

Falling into a lower Nitaqat category can affect work permits, hiring flexibility, and business operations.

This is why companies should regularly review Qiwa registrations, employee professions, and departmental compliance, not only overall headcount.

At Innovation-sa, we help businesses stay aligned with Saudi labor regulations, Saudization requirements, and operational compliance to reduce risk and support long-term growth.

FAQs

Q1: What are the latest Saudization updates in Saudi Arabia?

Saudi Arabia introduced major Saudization updates in April 2026. These include profession-specific quotas — 60% for sales and marketing roles, 70% for procurement — and a requirement to register all Saudi employee contracts on the Qiwa platform for them to count toward Nitaqat.

Q2: What is the Saudization percentage for sales and marketing roles in 2026?

Sales and marketing roles now require 60% Saudization, effective April 19, 2026. This applies to any private sector company employing three or more workers in these roles. Saudi nationals in marketing roles must also earn a minimum monthly salary of SAR 5,500 to count toward the quota.

Q3: What is the Saudization requirement for procurement roles?

Procurement roles require 70% Saudization under the 2026 Nitaqat updates. The enforcement grace period runs until May 31, 2026. Companies with three or more employees in procurement roles must meet this threshold or face Nitaqat classification penalties.

Q4: Can a company pass Nitaqat overall but still be non-compliant?

Yes. Under the 2026 Nitaqat updates, profession-specific quotas apply at the department level. A company can hold a strong overall Saudization rating while falling below the required percentage in a single department such as sales, marketing, or procurement.

Q5: Does the Iqama profession affect Saudization calculations?

Yes. From 2026, Saudization percentages are tied to the profession listed on the employee’s Iqama, not the internal job title. If the Iqama profession does not match the required quota category, the employee may not count toward that department’s Nitaqat target.

Q6: What happens if a Saudi employee’s contract is not registered on Qiwa?

If a Saudi employee’s contract is not registered on Qiwa, they will not be counted toward your company’s Saudization (Nitaqat) percentage. This can lower your Nitaqat classification without any change to your actual headcount, potentially affecting work permits and government service access.

Q7: What are the consequences of falling into a lower Nitaqat category?

Falling into a lower Nitaqat band can freeze work permit renewals, restrict visa issuance, suspend access to government portals like Qiwa and Muqeem, and disqualify the company from government contract bidding. Red-category companies may also be unable to prevent expatriate employees from transferring to other employers.