Nitaqat System in Saudi Arabi
Within the ongoing efforts exerted by the Kingdom of Saudi Arabia to achieve the goals of Vision 2030, the “Nitaqat” system emerges as one of the key initiatives launched by the Ministry of Human Resources and Social Development to regulate the labor market and increase Saudization rates. This system has had a wide-reaching impact, as the term “Nitaqat Saudi Arabia” has become closely associated with fundamental reforms in the employment structure of private sector establishments.
What is the Nitaqat System?
Nitaqat is a program launched by the Ministry of Labor (now the Ministry of Human Resources) aimed at classifying private sector establishments based on the percentage of jobs localized (Saudization). It is considered one of the most prominent Saudization initiatives in the Kingdom.
Establishments are categorized into several levels:
- Green Nitaqat (High, Medium, and Low)
- Platinum Nitaqat
- Yellow Nitaqat
- Red Nitaqat
This classification is based on the extent of a company’s commitment to hiring Saudi nationals compared to other companies of similar size and activity.
What’s the Difference Between Nitaqat Qiwa and Nitaqat Ministry of Labor?
Nitaqat Ministry of Labor was the common name for the system when it was directly managed by the Ministry of Labor.
Nitaqat Qiwa, however, is the upgraded version, implemented through the Qiwa digital platform, which offers a more streamlined and transparent experience for business owners.
Objectives of the Nitaqat System
The Nitaqat Saudi Arabia system aims to:
- Increase localization rates in the private sector
- Encourage companies to commit to hiring national talent
- Create a competitive labor market that supports Saudi capabilities
- Improve the quality of available jobs for citizens
- Balance between attracting foreign talent and empowering Saudis
Benefits of the Nitaqat System for Companies
- Establishments in the Green or Platinum categories receive facilitation in visa issuance and access to government services.
- Establishments in lower categories (Red and Yellow) face restrictions in employment, transfers, and government dealings.
- Improving classification in Nitaqat Qiwa opens doors for business expansion and eligibility for tenders and government contracts.
Updates in the Nitaqat System
The Ministry has introduced significant upgrades through the “Nitaqat Developer” version, which incorporates more performance metrics, such as:
- Average wages
- Employment continuity
- Targeted Saudization ratios over a 3-year period
These updates are part of the comprehensive Qiwa platform, which aims to centralize all labor-related services in one place.
How Does TATWEER ALPHA Help Companies Improve Their Nitaqat Rating?
Tatweer Alpha is a trusted partner for establishments seeking to enhance their classification in Nitaqat Saudi Arabia. The company provides end-to-end solutions for its partners, including:
- Analyzing current gaps in Saudization and workforce localization
- Designing effective Saudization strategies tailored to the size and nature of each business
- Offering support in recruitment, training, and professional development of Saudi talent
- Monitoring performance indicators and delivering periodic reports to help increase compliance levels
Tatweer Alpha simplifies the understanding and application of Nitaqat Qiwa mechanisms, helping companies move from low-performing Nitaqat categories to Green or Platinum levels in record time — thus enabling operational sustainability and competitive growth.
Whether you’re a small enterprise or a large corporation, partnering with experts like Tatweer Alpha is a strategic investment in improving your position in the ever-evolving Saudi labor market.
Contact Tatweer Alpha today for a free consultation from experienced professionals.