Saudi Arabia's Developed Nitaqat Programme: Key updates from May 2026
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Insight Article 25 June 2026 25 June 2026
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Middle East
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People dynamics
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Employment, Pensions & Immigration
The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has issued a new Developed Nitaqat Programme Procedural Guide 2026, updating the operation of Nitaqat 2.0 while leaving Ministerial Decision No. 182495 in place as the underlying legal framework.
The most significant structural change is the shift to an entity-based model, under which Saudisation is assessed across all branches carrying out the same economic activity, rather than at individual establishment level. The Guide also introduces a more data-driven and flexible approach to Saudisation thresholds, replacing fixed percentages with a dynamic model that takes account of workforce size, sector and Nitaqat band. Thresholds are now calculated using a logarithmic formula (Y = M × log(X) + C), meaning Saudisation targets increase progressively as headcount grows, rather than through step changes at fixed workforce brackets.
While the Nitaqat band structure itself remains unchanged (Low Green, Medium Green, High Green and Platinum, with Red below), the entry thresholds are no longer uniform and vary significantly across sectors, reflecting activity-specific constants and forward-looking thresholds set for 2026 to 2028. The practical effect is a system with greater variation between industries and more continuous movement between bands. Importantly, the Guide reinforces the link between Nitaqat compliance and access to labour and immigration services, with Low Green now carrying meaningful operational restrictions, including limitations on new visas and profession changes, while Red remains fully restrictive.
In this more dynamic framework, employers will need to actively monitor their Saudisation rate, applicable thresholds and band position, particularly as headcount changes or restructuring may affect compliance at entity level.
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