Saudi Arabia Launches Unified Employment Contract Initiative
New Ministry of Tourism Policy on Saudisation and Employee Registration
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Insight Article 10 February 2026 10 February 2026
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Middle East
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People dynamics
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Employment, Pensions & Immigration
In continuation of the Kingdom’s Saudisation policies; particularly within the tourism sector, the Ministry of Tourism (MOT) issued in November 2025 the Policies for Saudisation and Worker Registration in Licensed Tourism Establishments (the Policy).
Approved in August 2025 and rolled out in November of the same year, the Policy introduced by the MOT forms part of its annual workforce plan. This plan is designed to align with Saudisation objectives and regulatory requirements set by the relevant authorities, mainly the Ministry of Human Resources and Social Development (MHRSD), with the goal of achieving classification in line with the World Tourism Organisation and global best practices.
The Policy, now in effect, outlines new Saudisation targets and employee registration requirements for all licensed tourism establishments under the MOT.
In terms of Saudisation
The Policy echoes the regulations published by the MHRSD last April 2025, which introduced increased Saudisation quotas for specific professions within the tourism sector that will be implemented in three phases. Check out our earlier article on Navigating Saudisation in Saudi Arabia’s Tourism Sector: A Practical Guide for Employers, where we cover these quotas extensively.
In addition, the Policy increases the general Saudisation quota for tourism business activities, following the same phased approach, as follows:
| Stage | Saudisation Rate | Effective Date |
| First | 40% | 22 June 2026 |
| Second | 45% | 3 January 2027 |
| Third | 50% | 2 January 2028 |
The Policy also mandates that hospitality establishments have a Saudi receptionist present during working hours.
Restrictions on outsourcing
In alignment with the abovementioned requirements, tourism establishments are prohibited from outsourcing or assigning Saudised roles to entities or individuals outside the Kingdom . Outsourcing within the Kingdom is permitted, provided it is carried out through entities that are licenced by the MOT or MHRSD, as applicable.
Impact on hotel operators
The restrictions on outsourcing will require hotel operators in the Kingdom to adjust their staffing and compliance strategies. Key implications include:
- Roles designated for Saudi nationals cannot be outsourced to foreign entities or individuals outside the Kingdom.
- Hotels may face increased expenses for recruitment, training, and partnerships with approved outsourcing firms.
- Failure to adhere to these rules could result in penalties and/or licensing issues.
Employee registrations
Finally, the Policy addresses employee registration and the obligation to keep this information up to date. This includes registering employees with the MOT and MHRSD (e.g. Qiwa), as well as outsourced employees under the Ajeer platform.
Flexible Resourcing
While the Policy aims to increase the direct employment of Saudi nationals in tourism establishments, we understand that employers in the tourism sector will still need flexibility in managing workforce requirements, especially in hospitality where demand fluctuates. To address this, several options are readily available, such as:
- Part-Time work.
- Hourly-based employment through the Flexible Work Portal (Marn).
- Freelancing through the MHRSD’S Freelance Portal.
Conclusion
Businesses in the tourism sector should review their workforce strategies to take into account the Saudisation regulations, in addition to ensuring timely registration and updates for all employees in accordance with the new requirements. Please get in touch if you need assistance in navigating these obligations.
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