Saudi Nitaqat 2026 Reform: What Korean Companies Need to Check Now
Qiwa Electronic Contracts, Profession-Specific Saudization, and Instant Work Visa Caps
Hello, this is Administrative Agent Jean.
Have you established a company in Saudi Arabia, or are you preparing to enter the Saudi market?
If so, you should carefully review the Nitaqat, نطاقات system changes that apply from 2026.
This is not simply a matter of “hiring more Saudi nationals.”
It is an operational risk directly connected to visa issuance, work permit renewal, retention of foreign employees, commercial registration, investment licenses, and participation in government projects.
In particular, the following changes are being applied together in 2026:
- New 2026–2028 cycle of Nitaqat Mutawar
- Saudization calculation based on Qiwa electronic contracts
- Strengthened profession-specific Saudization quotas
- Increased Red classification risk following removal of the Yellow band
- Instant work visa issuance caps
- Saudi employee wage thresholds
- Target of localizing more than 340,000 jobs by 2028
This article summarizes what Korean companies should check from a practical perspective, based on publicly available materials from Saudi Arabia’s Ministry of Human Resources and Social Development, MHRSD, Qiwa, KPMG, and other sources.
What Is Nitaqat?
Nitaqat, نطاقات is Saudi Arabia’s national employment classification system for private-sector companies.
The word means “ranges” or “zones” in Arabic, and it is a core system for implementing Saudization.
Companies are classified based on Saudi employee ratios, business activity, company size, and other factors.
The color bands are generally described as follows:
Platinum
→ High Green
→ Mid Green
→ Low Green
→ Red
The important point is that this is not a mere recommendation.
A company’s Nitaqat classification directly affects access to labor, visa, and administrative services.
Depending on the classification, the following may be restricted:
- Issuance of new work visas for foreign employees
- Renewal of work permits for existing foreign employees
- Change of occupation
- Transfer of sponsorship
- Use of government labor services
- Procedures related to Commercial Registration, CR
- Renewal of investment licenses
- Participation in government projects
In other words, Nitaqat is not just an HR metric.
It is an administrative regulation that can affect whether a Saudi entity can continue operating smoothly.
Change 1 — A New 2026–2028 Three-Year Cycle Has Started
MHRSD has launched a new phase of Nitaqat Mutawar, نطاقات المطور, to apply over three years starting in 2026.
MHRSD describes the goal of this phase as localizing more than 340,000 additional jobs for Saudi men and women in the private sector.
The important point in this reform is that Saudization thresholds by sector and company size are being recalibrated.
From a company’s perspective, even if the workforce has not changed, the classification may fall if the required benchmark increases.
For example:
Suppose a Korean construction company’s Saudi subsidiary was High Green last year.
It had:
20 Korean engineers,
15 Saudi employees,
and maintained the same structure.
After the new 2026 criteria apply, the company may find on Qiwa that it has dropped to Mid Green.
The problem is not that headcount changed.
The benchmark changed.
Therefore, from 2026 onward, companies should not rely on their previous classification.
They should recalculate under the current standards using the Qiwa portal or Nitaqat Calculator.
Change 2 — Annual Nitaqat Checks Are No Longer Enough
In the past, many companies checked Nitaqat only once a year or only when visa work became necessary.
That approach is no longer safe.
Nitaqat classifications are connected to Qiwa, GOSI, and other labor and social insurance data, and they are continuously updated.
In particular, the following can affect the Saudization calculation:
- One Saudi employee resigns
- A Qiwa electronic contract is missing
- A profession code is incorrect
- Wage requirements are not met
Korean companies should therefore establish at least a quarterly review system for the following:
- Current Nitaqat classification
- Number of Saudi employees
- Number of foreign employees
- Qiwa electronic contract status
- GOSI registration status
- Profession codes
- Saudi employee wages
- Profession-specific quota compliance
- Available visa quota
Nitaqat is no longer a scorecard checked only when needed. It is an HR and visa compliance indicator that must be managed continuously.
Change 3 — Without a Qiwa Electronic Contract, a Saudi Employee May Not Count
A major change took effect on April 15, 2026.
MHRSD announced that Saudization calculations under Nitaqat would be based on employment contracts electronically documented through the Qiwa platform.
This means that even if a Saudi employee is actually employed, the employee may be excluded from Saudization calculations if the employment contract is not properly documented on Qiwa.
In the past, GOSI registration was often enough for inclusion in Saudization calculations.
Now companies need to check both:
**GOSI registration
- Qiwa electronic contract documentation**
For example:
A Korean IT company’s Saudi entity employs 10 Saudi nationals.
However, three of those employees do not have completed Qiwa electronic contracts.
In that case, the company may actually employ 10 Saudis, but only 7 may be counted for Nitaqat purposes.
That difference of three employees may be enough to move the company from Low Green to Red.
A Qiwa electronic contract may not be complete just because the employer created it.
The employee may also need to review and accept the contract through their personal Qiwa account.
Companies should therefore check:
- Whether the contract has been created
- Whether the employee has accepted it
- Whether the contract status is active
- Whether GOSI data and Qiwa data match
- Whether occupation title and salary match the actual arrangement
Change 4 — Removal of the Yellow Band Increases Red Risk
Previously, there was a Yellow band between Green and Red.
Yellow was often understood as a warning range.
After the 2026 changes, the practical removal of the Yellow band increases the risk that companies previously around Yellow may be classified as Red.
Red is not merely a warning.
If a company becomes Red, the following issues may arise:
- Restrictions on new foreign work visas
- Restrictions on renewal of foreign employees’ work permits
- Restrictions on access to labor-related government services
- Restrictions on occupation changes
- Risk to retaining existing foreign staff
- Sponsorship transfer risk
- Possible delays in investment license or commercial registration-related procedures
The major practical concern is the possible loss of key foreign personnel.
In some situations, foreign employees of a Red-classified company may be able to transfer to another employer without the current employer’s consent.
In other words, Red classification does not only block new visas.
It can also destabilize the foreign workforce already secured by the company.
Change 5 — Profession-Specific Saudization Quotas Must Be Reviewed Separately
The era of managing only the overall Saudization ratio is over.
MHRSD operates separate localization requirements for various professional groups.
A company may be Green overall but still violate a separate Saudization requirement for a specific profession group.
Profession groups often discussed in practice include:
| Profession Group | Main Issue | Practical Caution | |---|---|---| | Marketing and sales | Required Saudi ratio for relevant roles | Sales team may fail separately even if company is Green overall | | Administrative and support roles | Some administrative roles may have high localization requirements | Check profession codes for admin, secretary, reception, and similar roles | | Engineering | Separate Saudization ratio and minimum wage requirements | SCE registration or certification may be required | | Accounting and procurement | Separate profession-group localization may apply | Profession code matters more than job title | | Medical, pharmacy, dental | Field-specific requirements may apply | Check effective dates and detailed ratios by sector |
For example:
A Korean company’s Saudi entity maintains an overall Saudization ratio of 35% and remains Green.
But in the sales team, only 1 of 5 employees is Saudi.
The company may still fail the Saudization requirement for the sales profession group.
Therefore, companies should not rely only on the overall Nitaqat classification.
Saudization requirements must be checked by department and profession code.
Change 6 — Profession Codes Must Match Actual Duties
When managing Saudization in Saudi Arabia, the question is not only how many Saudi employees the company has.
It also matters which profession code each employee is registered under.
Problems may arise if:
- An employee actually performing marketing work is registered under another general profession
- An employee performing engineering work lacks SCE registration or is classified under another code
- A Korean employee is registered in an administrative support role subject to localization requirements
Incorrect profession codes may cause:
- Mismatch between actual workforce and Qiwa data
- Profession-specific Saudization violations
- Requests for correction during visa or work permit renewal
- Future labor inspection or platform review risks
- Constraints in employee transfer or occupation change
Korean companies should therefore check HR lists against:
- Actual duties
- Qiwa-registered profession
- GOSI information
- Salary
- Nationality
- Department
- Visa and work permit status
If the Excel HR list and Qiwa data do not match, the employee may exist in reality but not count correctly under the system.
Change 7 — Instant Work Visa Caps Affect Workforce Planning
The instant work visa rules on Qiwa also require attention in 2026.
According to KPMG and local reports, newly established companies less than two years old may obtain up to five instant work visas, while companies older than two years may obtain up to 50 if they satisfy applicable requirements.
This change is especially important for Korean companies establishing new entities in Saudi Arabia.
For example:
A Korean construction company wins a Saudi project and establishes a local project entity.
At the beginning, headquarters may want to send:
- Project manager
- Construction supervisor
- Safety manager
- Quality manager
- Engineer
- Procurement manager
- Finance manager
- Administration manager
But if the new entity’s instant work visa quota is limited, not all positions can be filled by foreign employees.
The company must ask from the beginning:
- Which roles must be held by Korean headquarters personnel?
- Which roles can be filled by Saudi local hires?
- Which personnel can work through short-term business travel?
- Which personnel need long-term work visas?
- In what order should visa issuance be planned based on project schedule?
The old approach of “we will apply for visas when needed” is risky.
Visa volume and Saudization planning should be designed from the Saudi entity formation stage.
Change 8 — Saudi Employee Wage Thresholds Must Be Checked
Saudi employees must meet wage thresholds to be counted in Saudization calculations.
In general, for full recognition under Nitaqat, companies should check whether Saudi employees receive at least SAR 4,000 per month.
If the wage is below this threshold, the employee may not be fully counted even if actually employed.
Some professions may require higher thresholds.
For example, engineering roles may involve a practical requirement of SAR 8,000 or more and registration or certification with the Saudi Council of Engineers, SCE.
Consider this example:
A company hires a Saudi engineer.
GOSI registration is completed.
The Qiwa electronic contract is completed.
But the salary is SAR 6,000 and SCE requirements are not satisfied.
In that case, the employee may not count properly for engineering Saudization purposes.
Therefore, Saudi hiring should not be managed only by headcount.
Companies should check:
- Monthly salary
- Profession-specific wage threshold
- Professional registration or certification
- Qiwa contract
- GOSI registration
- Actual duties
- Profession code
Change 9 — Part-Time, Student, and Special Counting Rules May Matter Strategically
Saudization calculations may include special counting rules for part-time workers, students, workers with disabilities, and other categories.
However, these rules are conditional and should not be approached simply as “part-time counts too.”
Small entities and new market entrants may find it difficult to hire many full-time Saudi employees immediately.
In that case, companies may consider:
- Hiring part-time Saudi employees
- Prioritizing high-risk profession groups
- Training and assigning Saudi entry-level employees
- Cooperating with local HR providers
- Hiring first in roles with Saudization shortfalls
However, the actual counting method may vary under Qiwa and MHRSD rules, so confirmation with local HR or labor professionals is safer.
Change 10 — Standards May Continue Rising Through 2028
MHRSD aims to localize more than 340,000 additional jobs under the 2026–2028 Nitaqat Mutawar phase.
This is not merely a declaration.
The following rules are all connected to that goal:
- Increased Nitaqat benchmarks
- Mandatory Qiwa electronic contract documentation
- Profession-specific Saudization quotas
- Instant work visa caps
- Wage thresholds
- Profession code management
- Restrictions on government labor services
Therefore, being Green in 2026 does not guarantee safety in 2027 or 2028.
Korean companies operating in Saudi Arabia should ask every year:
“Can our current workforce structure pass next year’s criteria?”
If this question cannot be answered, visa and work permit issues may arise after a project has already been awarded and workforce deployment begins.
Checklist for Korean Companies
If you operate or are preparing to establish a Saudi entity, review the following items first.
1. Have You Checked the Current Nitaqat Classification on Qiwa?
Your previous classification may have changed under the 2026 standards.
Recalculate using Qiwa or the Nitaqat Calculator based on current workforce data.
2. Are All Saudi Employees’ Qiwa Electronic Contracts Completed?
Check not only employer-side creation but also employee acceptance.
If the contract status is incomplete, the employee may be excluded from Saudization calculations.
3. Do GOSI Registration and Qiwa Data Match?
If an employee is registered in GOSI but has no Qiwa contract,
or if Qiwa contract information does not match occupation, wage, or work details,
problems may arise.
4. Have You Checked Profession-Specific Saudization Quotas?
Do not check only the overall Nitaqat band.
Review the following profession groups separately:
- Sales
- Marketing
- Administration
- Engineering
- Accounting
- Procurement
- Medical
- Technical roles
5. Have You Replanned Foreign Visa Issuance?
Entities less than two years old should consider instant work visa caps.
From the project planning stage, divide positions between foreign assignees and Saudi local hires.
6. Do Saudi Employee Wages Meet the Required Threshold?
Check whether the general monthly threshold of SAR 4,000 is satisfied.
Some roles, such as engineering, may require higher wages and professional registration.
7. Do Profession Codes Match Actual Duties?
If the registered profession and actual duties differ, profession-specific Saudization violations may occur.
The roles of Korean expatriates and Saudi local employees should be clearly distinguished.
8. Is There a Workforce Plan Reflecting 2027 and 2028 Standards?
Meeting the current standard is not enough.
Because Nitaqat Mutawar operates on a three-year cycle, future benchmark increases should be reflected.
Internal Management Table for Saudi Entities
A table like the following can help manage HR, visa, and labor compliance risks.
| Item | What to Check | Responsible Team | |---|---|---| | Nitaqat classification | Current Qiwa-based classification | HR / local entity head | | Saudization ratio | Overall Saudi employee ratio | HR | | Qiwa contracts | Completion of Saudi employee electronic contracts | HR / employees | | GOSI registration | Social insurance registration status | HR / accounting | | Profession codes | Match between actual duties and registered professions | HR / department heads | | Wage threshold | SAR 4,000 or profession-specific threshold | HR / accounting | | Engineer certification | SCE registration status | Technical team / HR | | Visa plan | Available instant work visa quota | HR / project team | | Local hiring | Saudi roles to be hired | HR / department heads | | Future standards | 2027–2028 benchmark readiness | Management |
If this table is updated monthly or quarterly, companies can reduce the risk of discovering Red classification issues only when applying for visas.
Summary — Saudization Is Not Just a Hiring Issue; It Is an Entity Operation Issue
The core of the 2026 Nitaqat reform is clear.
Saudi Arabia is managing Saudi employment in the private sector more precisely in line with Vision 2030.
Companies can no longer look only at how many Saudi nationals they have hired.
They must review the following together:
Qiwa electronic contracts
GOSI registration
Nitaqat classification
Profession-specific Saudization quotas
Profession codes
Saudi employee wage thresholds
Professional registration or certification
Instant work visa availability for foreign employees
2027 and 2028 benchmark changes
In other words, Saudization is not only an HR issue.
It is an entity operation issue connected to visas, project deployment, local entity maintenance, investment licenses, and access to government services.
For Korean companies already in Saudi Arabia or preparing to enter, the first step is not simply posting more Saudi job openings.
The first step is to open the current workforce table,
compare it with Qiwa and GOSI data,
and review profession-specific quotas and visa plans together.
If You Are Reviewing Workforce and Visa Structure for a Saudi Entity
You do not need to prepare every document yet.
First, organize the following information to identify current risk points:
- Current Nitaqat classification of the Saudi entity
- Full employee list
- Saudi and non-Saudi employee classification
- Qiwa electronic contract status
- GOSI registration status
- Profession codes
- Monthly salaries
- Future foreign assignees
- New visa issuance plan
Ethos Administrative Agent Office reviews, within the scope of Korean administrative agent services, powers of attorney between Korean headquarters and Saudi entities, dispatch-related documents, English and Arabic administrative documents, foreign investment documents, and Middle East submission document structures.
However, Nitaqat classification calculations, Qiwa and GOSI registration, Saudi labor law employment and visa determinations, and MHRSD sanctions are matters requiring confirmation from Saudi competent authorities and local labor or legal professionals.
References
- MHRSD, Ministry of Human Resources Announces the Launch of a New Phase of the Nitaqat Mutawar Program
- MHRSD, Qiwa electronic documentation of employment contracts and Saudization calculation
- Qiwa, Support National Competencies — Nationalization
- Saudi National Platform, Nitaqat Calculator
- Saudi National Platform, Instant Work Visas
- KPMG, Saudi Arabia — Qiwa Introduces Instant Work Visa Caps and Company Eligibility Requirements