Saudization explained: What it means for jobs, expats, and employers in Saudi Arabia

Time of India

4 days ago

Saudization promotes hiring Saudi nationals across private sector industries under Vision 2030/ Represenatative Image
TL;DR
Saudization (
Nitaqat
) is a national policy requiring companies to hire Saudi nationals.
Businesses are ranked by how well they meet set quotas based on size and industry.
While expats face stricter competition, skilled professionals are still valued and needed.
Saudi Arabia
is facing a generational shift in how its workforce operates. For decades, the country leaned heavily on foreign workers, especially in the private sector. But that's changing.
With over half the Saudi population under 35 and unemployment among nationals a growing concern, the government is actively working to change the balance.
This shift is being driven by Saudization, officially called the
Nitaqat
program. It's part of a larger plan, Vision 2030, to diversify the economy and create more opportunities for Saudi citizens. At its core, Saudization is about getting more locals into private sector jobs, especially in industries that have long depended on expats.
Under this system, companies are required to hire a specific number of Saudi nationals, based on their size, sector, and existing workforce. The policy is mandatory and comes with real consequences, both incentives for compliance and penalties for falling short.
For companies, this means rethinking how they hire. For expats, it means being more strategic about where and how they fit into a changing job market.
What Is Saudization?
Saudization is a government program that sets hiring quotas for Saudi citizens within private companies.
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It was introduced by the Ministry of Human Resources and Social Development to tackle unemployment among Saudi nationals and build up the country's local workforce.
Unlike many public sector jobs, which already employ large numbers of Saudis, the private sector has long relied on expat labor, particularly for technical, administrative, and service roles. Saudization is focused on this part of the economy.
Linked to Vision 2030 Goals: The broader objective is to reduce unemployment to 7% by the next decade (from a high of 12.9% in 2018).
It also supports Saudi Arabia's efforts to build a more resilient, knowledge-based economy.
How the Nitaqat Classification Works
Six Tiers Based on Compliance: Private companies are placed into six zones depending on how many Saudi nationals they employ relative to their total workforce:
Platinum- Highest level of Saudization
High Green- Above average
Medium Green- Compliant
Low Green- Below target
Yellow- Minimal compliance
Red- Non-compliant
Why It Matters
Companies in higher zones (Platinum, High Green) get benefits such as quicker visa processing, easier labor approvals, and priority in certain government services.
Lower-zone companies (Yellow, Red) face delays, hiring restrictions, and even fines or suspension of services.
Who Needs to Comply?
Companies with 10 or more employees must follow the classification system. Smaller companies are not exempt, they must still hire at least one Saudi national.
Saudization Rules in 2025
As of 2025, the Saudization program is being updated with stricter enforcement and more targeted sector-specific requirements. For example:
In retail and customer service, Saudi nationals are required for front-line roles.
HR departments must be led by Saudi managers.
Sales roles in women's clothing stores must be filled by Saudi women.
Some sectors, like aviation, hospitality, and IT, now have sub-quota requirements for specific job titles.
The Ministry updates the quotas annually, so companies need to stay informed or risk slipping into a lower compliance category.
Jobs Reserved for Saudi Nationals
Some roles are now fully restricted to Saudi citizens. These positions are not open to expats, regardless of their qualifications. Examples include:
HR roles: Executive HR Manager, HR Director, Payroll Officer
Customer-facing jobs: Call Center Clerk, Reservation Agent, Cashier
Specialized roles:
Air Traffic Controller
, Meteorologist, Dispatcher
Sales roles: Sales specialist (especially in women-only stores)
Clerical work: Tourist
Info Clerk
, Complaint Clerk, Booking Agent
The list of restricted jobs grows each year as the government expands the Saudization policy into more fields.
What It Means for Expats
Saudization encourages companies to prioritize hiring Saudi nationals, especially in roles where local talent is increasingly available, such as HR, administration, and customer-facing services.
This means hiring decisions now take national employment goals into account more than before.
But this shift doesn't close the door to expats. In fact, professionals with specialized skills are still in high demand, particularly in industries where expertise remains scarce locally. These sectors include:
Engineering
Healthcare
Technology and software
Education
Senior management
Saudi Arabia continues to attract experienced professionals who bring value through technical skills, leadership, or global experience.
As the job market becomes more focused and selective, expats who offer unique capabilities remain key contributors to the country's growth.
Similar National hiring efforts across the Gulf
Saudization isn't unique. Other Gulf countries have introduced their own national hiring initiatives:
Emiratization (UAE):
Encourages companies to hire
Emirati
nationals, with increasing mandatory quotas.
Omanization (Oman):
Targets replacement of expats with Omanis, especially in oil, banking, and telecom.
Qatarization (Qatar):
Focuses on national employment in strategic sectors like energy and finance.
Bahrainization (Bahrain):
Aims to train and place Bahraini nationals in both public and private sectors.
Each program has different levels of enforcement and industry focus, but they all reflect a broader regional trend: governments want their citizens more involved in shaping the economy.
FAQs
1. Does Saudization apply to all companies in Saudi Arabia?
Yes. All private sector companies are expected to comply, especially those with more than 10 employees. Smaller companies still need to hire at least one Saudi citizen.
2. What happens if a company doesn't meet Saudization quotas?
Companies in the Red or Yellow zones may face restrictions, including blocked work visas, fines, and reduced access to government services. In serious cases, a business license can be suspended.
3. Can expats still find jobs under Saudization?
Yes, but it depends on the industry and role. Expats with strong qualifications in sectors like engineering, tech, and healthcare are still needed. However, roles in admin, sales, and HR are increasingly going to Saudi nationals.