Business Glossary /

Saudi Labor Law

Saudization

Saudization

Saudi Arabia's national policy requiring private sector companies to hire a minimum percentage of Saudi national employees.

Saudization is Saudi Arabia's national workforce nationalization policy implemented through the Nitaqat system. It mandates that private sector employers maintain a minimum proportion of Saudi national employees relative to their total workforce. The required Saudization percentage varies by industry sector and company size, ranging from 5% to over 30% in some sectors. Saudization compliance directly determines a company's Nitaqat band (Platinum, Green, Yellow, Red) which in turn affects visa quota access, government services eligibility and business licensing. Inclusive Solutions develops Saudization strategies and roadmaps that achieve compliance while building genuine Saudi talent pipelines.