Saudization 2026: Nitaqat Al-Mutawar Phase 2 Explained

Saudization 2026: Nitaqat Al-Mutawar Phase 2

The new Nitaqat Al-Mutawar phase began on 26 April 2026, with effects that hit both general company classification and profession-specific quotas at the same time.

Staggered enforcement dates

• Marketing and sales: 60% Saudization, effective 19 April 2026

• General Nitaqat phase switch: 26 April 2026

• Procurement: 70%, with a grace period until 31 May 2026

• Engineering: 30%, with a grace period until 30 June 2026

• Accounting: phased from 40% toward 70% through 2030

Yellow band fully retired

Companies previously in the Yellow band are now classified directly as Red, with all the visa and permit consequences that band carries.

Mandatory Qiwa documentation

Since 15 April 2026, a Saudi employee only counts toward Saudization if their contract is digitally documented and signed on Qiwa.

Frequently Asked Questions

Does Phase 2 mean higher targets across the board?

Yes. The c-values used in the Nitaqat formula were raised for most sectors, meaning required Saudization percentages increased even for companies with unchanged headcount.

Are there grace periods?

Yes, and they vary by profession: procurement until 31 May 2026, engineering until 30 June 2026.

Do the profession-specific quotas carry salary requirements?

Yes. Engineering requires SAR 8,000 minimum and marketing/sales requires SAR 5,500 minimum for the Saudi employee to count.

How Inclusive Solutions helps

We map your real exposure under Phase 2 and build a practical compliance roadmap. Try our Nitaqat calculator or talk to our team.