In April 2026, the Ministry of Human Resources launched "Nitaqat Developer," the largest restructuring of the localization program since its founding, aiming to localize more than 340,000 jobs over three years. The update applies detailed localization ratios per economic sector instead of the previous general ratios, eliminates the "jump gap" between bands, and requires the Saudi employee's role to be genuinely substantive, not just a nominal headcount.
Platinum (the top band, full privileges), Green (in three tiers: high, medium, low, within the statutorily "safe entity"), Yellow (a formal warning of moving to Red if the situation doesn't improve), and Red (near-complete freezing of Ministry services). Businesses outside Green face a ban on issuing new work visas, and in the Red band specifically, expatriate employees are allowed to transfer to another employer immediately without the current business's approval.
A Saudi employee working under the flexible work system (remote or organized part-time) counts as a full Nitaqat point if they complete 160 working hours monthly, documented electronically via the Qiwa platform. This flexibility opens real options for small businesses unable to offer full-time positions, but needs precise hour documentation, not just nominal registration.
Registering a Saudi in social insurance without genuine work within the business is treated as a serious violation potentially carrying criminal penalties for the business (where forgery or collusion exists), along with an obligation to repay any government support disbursed based on this fake registration, plus a fine of up to SAR 10,000 on the employee themselves for each instance of fake registration they participate in.
To improve your business's Nitaqat band or address a Saudization violation in Jeddah, contact us on WhatsApp.
You may also find it useful to review Work & Occupational Injury Lawyers in Jeddah or GOSI & Social Insurance Disputes Lawyers in Jeddah, both topics our team handles regularly in Jeddah and which may relate to your situation.Reach out now on WhatsApp or by phone: a licensed Jeddah lawyer will respond quickly.
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