Saudi Arabia moves Nitaqat to an entity-based model with formula-driven targets
The 2026 Developed Nitaqat Procedural Guide assesses Saudisation across all branches in the same economic activity and replaces fixed percentage brackets with a logarithmic formula.
Photo: M.Bitton (CC BY-SA 4.0)
Saudi Arabia's Ministry of Human Resources and Social Development has issued a new Developed Nitaqat Programme Procedural Guide for 2026, updating how Nitaqat 2.0 operates while leaving Ministerial Decision No. 182495 in place as the legal framework.
The structural change is a shift to an entity-based model: Saudisation is now assessed across all branches carrying out the same economic activity rather than establishment by establishment. Fixed percentage thresholds give way to a dynamic model calculated with a logarithmic formula, so targets rise progressively as headcount grows instead of jumping at set brackets.
The band structure — Low Green, Medium Green, High Green and Platinum, with Red below — is unchanged, but entry thresholds now vary considerably by sector. Low Green carries meaningful operational restrictions including limits on new visas and profession changes, and Red remains fully restrictive.
What it means for employers
- Group your Saudi entities by economic activity before calculating where you sit.
- Model your band at projected headcount, not today's — the formula moves the target as you grow.
- Treat a Low Green classification as a hiring risk, not a comfortable position.
Related pages
Summarised by the Horizon GCC team. Original reporting: Clyde & Co
This briefing is general information, not legal advice. Confirm current requirements with the relevant authority before acting.
Get the latest HR, jobs and labour-market news
Labour law changes, visa rules, hiring trends and salary data from the UAE and the wider Gulf — sent with a link to read the full briefing on our site.
Talk to a Horizon GCC recruitment specialist.
Speak to one of the team and find out why UAE and GCC employers trust Horizon GCC to hire HR, technical and professional talent.