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Saudi Arabia has quietly updated how companies count local employees under its workforce nationalisation policy. The change is simple on paper, but it could have real consequences for businesses that rely on foreign workers.

What’s New: Two-Step Requirement for Saudi Employees

Until now, companies only needed to register Saudi employees with GOSI to include them in Saudization targets.

That’s no longer enough. From now on, employers must complete both steps:

• Upload and document the employee’s contract on the Qiwa Platform
• Ensure the employee is registered with the General Organisation for Social Insurance (GOSI)

If either step is missing, the employee won’t be counted as a Saudi hire under the system.

Why This Matters for Companies

This change goes straight to the core of Saudization calculations. If companies fail to upload contracts on Qiwa:

• Saudi employees may not be counted
• The company’s Saudization percentage could drop
• Their Nitaqat category may be downgraded

And that leads to bigger issues. A lower Nitaqat rating can affect:

• Work permit approvals
• Visa issuance and renewals
• Access to key government services

In short, missing paperwork can now directly impact hiring flexibility.

What is the Nitaqat Program?

The Nitaqat Program is Saudi Arabia’s system to increase employment of its citizens in the private sector. It divides companies into categories based on how many Saudi nationals they employ.

How it works:

• Companies are grouped into bands like Platinum, Green, Yellow, and Red
• Each category reflects how well a company meets Saudization targets
• The better the category, the more benefits the company gets

Why it exists:

Saudi Arabia introduced Nitaqat to:

• Reduce unemployment among Saudi citizens
• Encourage private companies to hire locals
• Balance reliance on foreign workers

How Nitaqat Ratings Affect Businesses

Your Nitaqat rating is not just a label. It directly affects how your business operates.

Higher-rated companies (Platinum or Green):

• Faster visa processing
• Easier hiring of foreign workers
• Fewer restrictions

Lower-rated companies (Yellow or Red):

• Limits on hiring expatriates
• Difficulty renewing work permits
• Possible operational restrictions

That’s why even a small drop in Saudization percentage can create bigger compliance risks.

The Bigger Picture: A Push for Transparency

This update shows a clear shift.

Saudi authorities want better tracking of employment relationships, not just registrations. By linking Saudization eligibility to both Qiwa contracts and GOSI records, the system becomes harder to bypass.

For employers, it means one thing: Documentation is now just as important as hiring.

What Employers Should Do Now

If you’re managing a workforce in Saudi Arabia, this is not something to ignore.

Make sure:

• All Saudi employees have contracts uploaded on Qiwa
• GOSI registrations are complete and accurate
• Records are regularly reviewed to avoid gaps

A quick audit today can prevent compliance issues later.

Final Thoughts

Saudi Arabia hasn’t changed its Saudization goals. It has simply tightened how companies prove they are meeting them. For businesses, the message is clear. Hiring Saudi nationals is no longer enough. You also need to show it properly in the system.