Details of the updated guide for the Developer Nitaqat Program 2026 and localization ratios
The Ministry of Human Resources and Social Development in the Kingdom of Saudi Arabia announced the release of the updated procedural guide for the “Developed Nitaqat” program for the year 2026, in a strategic step aimed at enhancing the efficiency of the labor market and raising the rates of participation of national cadres in private sector establishments, in line with the ambitious goals of the Kingdom’s Vision 2030.
A clear roadmap for the labor market
This update is an extension of the Ministry's ongoing efforts since the launch of the Nitaqat program, which is the primary tool for Saudization. The new guide aims to provide a clear, multi-year Saudization plan, granting private sector establishments operational stability and the ability to plan their human resources in advance, thus mitigating the impact of sudden changes. This reflects the maturity of the Saudi labor market's regulatory framework.
Key features of the updated guide and the minister's decisions
According to a decision issued by the Minister of Human Resources and Social Development, Engineer Ahmed Al-Rajhi, a comprehensive restructuring of the program was approved. This restructuring included merging similar economic activities into a unified framework to streamline procedures. The new guide focuses on accurately calculating actual Saudization rates, ensuring fair classification among establishments. This guide serves as a comprehensive reference that clarifies the relationship between an establishment's Saudization performance and the government services it receives, thus enhancing transparency.
The most localized sectors and their economic impact
The updated report revealed tangible successes in several vital sectors, with the education sector (public and private training) topping the list of sectors with the highest Saudization rates, followed by the healthcare sector, which is undergoing a major transformation, and then the wholesale and retail trade and business services sectors. Promising sectors such as tourism and hospitality, manufacturing, and communications and information technology also emerged as key drivers of national employment, directly contributing to the diversification of the non-oil economy and increasing the private sector's contribution to GDP.
The incentive and punishment mechanism: the balance between encouragement and commitment
The procedural guide clearly outlines the consequences of establishment classification. Establishments in the "red zone" face strict restrictions, including the denial of essential services such as transferring employees, changing professions, issuing new visas, and even renewing work permits, all aimed at encouraging them to rectify their situations. Conversely, compliant establishments in the higher zones (platinum and green) enjoy full access to services and operational facilities, giving them a competitive edge in the market.
Strategic and future impact
The updated guidelines are not limited to the regulatory aspect; they also serve as a cornerstone for achieving economic and social sustainability. By stimulating investment in Saudi human capital, these policies contribute to reducing unemployment rates and achieving job stability, thereby strengthening local purchasing power and supporting the Kingdom's overall economic growth.
