How to Meet Saudization Targets: A Practical Plan for Employers

To meet Saudization targets, an employer needs to know its gap exactly, pick the cheapest legitimate way to close it, and hold the result. This page is the working plan: how to diagnose each rule, the six levers that move the numbers, what does not work, a quarterly plan, a budget view and the KPIs HR should watch each month. It is written for HR directors and CEOs of private-sector entities in the Kingdom.

How do I diagnose my Saudization gap?

Measure your gap once for Nitaqat and once for every profession rule that touches your workforce. They are separate tests and do not offset each other: MHRSD says the Nitaqat band does not affect a profession rate.

Work through five inputs in order.

The profession rules in force or announced as of 8 October 2026 are summarized below. Each uses its own trigger, so a company can sit inside several at once.

How do I calculate the gap by rule?

For a profession rule: required Saudis = covered headcount x rate, rounded to the nearest whole number. Gap = required minus Saudis who qualify. This is the method in MHRSD's guides.

Illustrative example, not a real company. An entity has six marketing employees (two Saudis earning SAR 5,500 or more), four procurement employees (two Saudis), and ten engineers (two Saudis who each earn at least SAR 8,000 and hold SCE accreditation).

The Nitaqat row is deliberately blank on numbers. The thresholds come from a formula with constants MHRSD publishes by activity, band and year, so take the live figure from Qiwa rather than from this site.

What are the levers for closing the gap?

There are six, and they work best in combination. The table shows what each one changes and how fast.

Should I add Saudis or replace non-Saudi roles?

Replacing is more efficient, because the denominator does not grow. Using the marketing team above (6 people, 2 qualifying Saudis, 4 required):

Adding Saudis alone needs three hires, because each hire also raises the requirement. Replacing needs two moves. Re-run the calculation after every change; rounding can shift the requirement by one person. For Nitaqat, the same logic applies with the formula in how to improve your Nitaqat band.

How do I hire Saudis effectively?

Open requisitions for every gap role early, use more than one channel, and make the offer clear of the relevant floor. Our guide to hiring Saudi talent covers channels (HRDF's Jadarat platform, Tamheer, university pipelines, specialist recruiters), the hiring steps and onboarding so each hire counts on Qiwa and GOSI.

Can I convert existing Saudi employees into covered roles?

Yes, and it is often the quickest source of qualifying Saudis. A Saudi in a non-covered role, such as operations or administration, can move into a covered marketing, procurement or project role if the skills fit. Plan the transfer with a development path, a pay review against any floor, and a documented change in duties, then update the registered occupation through the proper Qiwa process. Pair it with training: see careers in procurement, marketing and project management for the certifications that matter.

How do I restructure roles and occupation codes correctly?

Match each role to the code that reflects what the person actually does. MHRSD guides say decisions apply to listed occupations and to actual duties, so both must agree. If a record is wrong in either direction, log it and correct it with a reason and an approver. Under Low Green or Red, profession change on Qiwa is restricted; see Qiwa profession change.

Can I raise pay to make Saudis count?

Often, yes. A Saudi paid SAR 3,600 counts as half for Nitaqat; at SAR 4,000 the same person counts as one. A Saudi marketing employee below SAR 5,500 does not count toward the marketing rate at all. Review every Saudi salary against every floor that applies. See salary thresholds by profession.

How does HRDF support help?

HRDF's Employment Support (Hadaf) pays 30% of a qualifying Saudi's wage, plus 10% for each targeted category that applies, for up to 24 months, within a cap, for wages of SAR 4,000 to 15,000. Tamheer pays graduate trainees SAR 3,000 a month for 3 to 6 months. Neither adds weight to your Nitaqat count, but both cut the cost of the headcount that does. Details: support programs and Hadaf wage support.

How does retention fit in?

Every Saudi who leaves must be replaced before the next calculation, or your gap reopens. Retention is the cheapest lever and the most neglected. See retaining Saudi employees.

What does not work?

Three shortcuts look cheap and create larger problems.

Outsourcing is not described as an exemption in MHRSD's guides either; see does outsourcing exempt you. For how enforcement works, read Saudization violations and penalties.

What is a 30/60/90 day plan for meeting targets?

Start the clock at least 90 days before the nearest effective date. This plan aligns with the 90-day readiness checklist, which gives the task-level detail.

Planning before each effective date matters because hiring and support run on slow clocks. Check the calendar for the next date that touches your roles, including project management on 14 February 2027.

What does it cost to meet Saudization targets?

The cost has five lines: salary at or above the floor, on-costs, recruitment, training and the risk cost of a missed rule. Only floors are set by MHRSD.

Budget the base case without HRDF support and treat it as an upside; approval is not automatic. See cost of Saudization for a worked, labelled-illustrative example. Compare it against the cost of Low Green or Red restrictions in Low Green and Red Nitaqat.

Which KPIs should HR track every month?

Track eight numbers, each by entity and, where relevant, by rule.

Review on a fixed date each month with payroll, the heads of covered functions and Qiwa access holders. This page describes published rules and is not legal advice for your entity.