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The Saudi labor market is undergoing continuous transformation under the Ministry of Human Resources and Social Development (MHRSD). One of the most important programs introduced to shape this transformation is the Nitaqat program. Designed to increase the employment of Saudi nationals across the private sector, Nitaqat directly impacts how businesses in the Kingdom hire, operate, and grow.
To help business owners assess their compliance and eligibility, the Ministry provides a Nitaqat Calculator. This tool allows establishments to measure their current nationalization rate and determine their Nitaqat level.
What is Nitaqat?
The Nitaqat program is a nationalization policy that requires establishments operating in Saudi Arabia to hire a specific number of Saudi nationals.
Companies are categorized into levels based on the percentage of Saudi employees in their workforce relative to total employees, adjusted for industry type and company size.
The categories are:
High Green
Mid Green
Low Green
Red
For small-sized entities (Small A) with five or fewer employees, the classification is simplified to only two categories:
Green (requires at least one Saudi national)
Red
Why Does My Nitaqat Level Matter?
Your establishment’s Nitaqat level determines the benefits and restrictions applied by the Ministry of Human Resources:
- Mid-Green and above
- Eligible to renew foreign employee work permits
- Can apply for new work visas
- Can transfer employees between departments
- Allowed to change employee profession classifications
Red Level
- Restricted from applying for new visas
- Cannot renew work permits
- Blocked from opening new branches or files
- Denied Ministry services
Maintaining a favorable Nitaqat status is therefore critical for uninterrupted operations.
What Affects My Nitaqat Level?
Your Nitaqat classification is determined by three main factors:
Entity Classification – The type of primary activity registered with the Ministry.
Size of Establishment – The total workforce in the establishment.
Nationalization Percentage – The ratio of Saudi to total employees.
Hiring a Saudi national directly impacts this percentage, often resulting in an improved Nitaqat level.
How is Nitaqat Calculated?
There are two methods:
1. Traditional Method
- Based on the average number of employees over a 26-week period.
- Reduces the risk of a sudden downgrade in case of employee departures.
2. Immediate Calculation Method
- Based on a one-week period.
- Applied if:
- The entity has remained at least Low Green for 13 consecutive weeks, or
- The entity is newly established (less than 13 weeks old).
- Grouped Small-A entities (with five or fewer employees across all branches combined) can only use this method.
Special Cases in Nitaqat Calculations
Not all employees contribute equally to the nationalization percentage. Below are key special cases:
Employees with Higher Nationalization Weight
- Saudi with special needs = 4x weight (capped at 10% of total workforce)
- Former prisoner = 2x weight (capped at 10% of workforce)
Employees with Lower Nationalization Weight
- Saudi student = 0.5x weight (capped at 10%, or up to 40% if in food sector)
- Part-time Saudi = 0.5x weight
Employees with Equal Weight
Counted as 1 Saudi in nationalization:
- Remote Saudi employees
- Sons/daughters of Saudis
- Mothers or widows of Saudis
- Displaced tribes individuals
- Gulf country citizens
- Non-Saudi professional athletes
- Owners (Saudi or non-Saudi)
- Borrowed Saudi employees
Employees with No Effect
- Non-Saudi spouse of a special expatriate (not counted as Saudi or expat)
Special Expatriate Categories (Lower Expat Rate)
- Palestinians with Egyptian passports and Baluchis = 0.25x expat rate (max 50% of workforce)
- Myanmar nationals = 0.25x expat rate (applies everywhere except Makkah and Madinah)
Using the Nitaqat Calculator
The official Nitaqat Calculator, available on the Qiwa platform, allows establishments to instantly measure their nationalization status and determine their level.
By inputting the number of Saudi and non-Saudi employees, business owners can evaluate current performance and forecast how future hires will impact their compliance.
