Evolved Nitaqat 2026 and the profession-level Saudization wave: what changes for ICT vendors.
How the 2026–2028 Nitaqat cycle and the 2025–26 profession-specific quotas combine into a blended Saudization requirement well above the 25% ICT floor.
Saudi Arabia's Saudization regime changed shape in 2026. The Nitaqat band system was rebuilt around a dynamic, entity-level formula for the 2026–2028 cycle, and a wave of profession-specific ministerial decisions raised quotas for the roles that surround every technology delivery team — sales, procurement, project management, finance and administration — to between 50% and 100%. The core ICT professions remain at 25% per functional group under Ministerial Decision 28889, but no vendor delivers ICT with ICT staff alone. This briefing sets out both layers, computes what they add up to for a representative systems-integrator entity (about 42% of headcount once every decision is in force in February 2027, rising to about 44% as accounting reaches 70%), and draws out the practical consequences for vendors and for the government and national-champion buyers who contract them.
- 01
Two layers, one requirement. An entity-level Nitaqat band (Platinum, High, Medium and Low Green, with Red below; the Yellow band has been eliminated) now sits alongside profession-level quotas enforced through the Qiwa platform. A vendor can be Green at entity level and still be non-compliant on a profession quota 234.
- 02
The 25% ICT floor is now the exception. ICT engineering, development and support roles remain at 25% per functional group under Decision 28889 (2020) 1, but ICT equipment sales specialists fall under the 60% sales quota (effective 19 April 2026), procurement and contracts roles under 70%, accredited engineering roles under 30% with a SAR 8,000 wage floor, accounting under 50% from 27 October 2026 rising to 70%, administrative support under 100% from 4 October 2026, and project management under 70% from 14 February 2027 5678.
- 03
The blended requirement for a representative 100-person systems-integrator entity is about 42% Saudi headcount once every decision is in force (February 2027), 17 points above the 25% a vendor would budget from the ICT decision alone, and about 44% once accounting reaches 70% (Exhibit 3, illustrative role mix with stated assumptions).
- 04
Counting rules tightened. A Saudi employee counts only above a wage floor (SAR 4,000 for Nitaqat; SAR 5,500 to SAR 8,000 for the new marketing and engineering quotas 56), only with an electronically documented Qiwa contract from 15 April 2026, and Saudization is now assessed across all branches with the same economic activity rather than per establishment; the small-entity exemption has been removed 234.
- 05
The band is now a delivery-continuity risk. Low Green carries restrictions on new visas and profession changes and Red is fully restrictive; a vendor that slips a band mid-programme can lose the ability to mobilise expatriate specialists for the client it serves 3.
Saudization in 2026 has two layers
The first layer is Nitaqat, the band system that classifies every private-sector employer by its ratio of Saudi to total employees. On 22 January 2026 the MHRSD issued the Procedural Guide for the Evolved (Developed) Nitaqat programme, which governs the cycle running from April 2026 to December 2028, with Ministerial Decision 182495 remaining the underlying legal framework 23. Three structural changes matter for vendors. Saudization is now assessed on an entity basis across all branches carrying out the same economic activity, rather than per establishment. Band thresholds are no longer uniform percentages but a dynamic, activity-specific formula that varies with workforce size and sector and that carries forward-looking thresholds for 2026 to 2028. And the exemption for very small establishments has been removed, so Nitaqat applies to all entities regardless of size 234.
The consequences of a weak band are also sharper. The Yellow band has been eliminated; Low Green now carries meaningful operational restrictions, including limitations on new visas and profession changes, while Red remains fully restrictive 34. Higher bands continue to attract incentives, including access to Human Resources Development Fund (HRDF) support 11.
The second layer is profession-level localisation: ministerial decisions that fix a Saudization percentage for a named list of professions, applied to any establishment employing at least a stated number of workers in those professions, with a wage floor below which a Saudi does not count. These decisions apply irrespective of the entity's Nitaqat band. The ICT decision is the oldest in the set: Ministerial Decision 28889 of 5 October 2020 localised 25% of jobs in each of three ICT functional groups — communications and IT engineering, application development, programming and analysis, and technical support — in establishments with five or more workers per group, with wage floors of SAR 7,000 for specialised and SAR 5,000 for technical roles, effective 27 June 2021 1. What changed in 2025–26 is everything around it.
| Date | Instrument | What it does | Effective |
|---|---|---|---|
| 5 Oct 2020 | MHRSD Ministerial Decision 28889 1 | 25% Saudization in each of three ICT functional groups; wage floors SAR 7,000 / 5,000; scope ≥5 workers per group | 27 Jun 2021 |
| 26 Jan 2025 | MHRSD localisation measures 8 | Localisation covering 269 professions across sectors | Phased |
| 30 Nov 2025 | MHRSD decision — procurement professions 6 | 70% Saudization, 12 roles, scope ≥3 workers | Six-month preparation period |
| 31 Dec 2025 | MHRSD decision — engineering professions 6 | 30% Saudization, 46 roles, SAR 8,000 wage floor, SCE accreditation | Six months after decision |
| 19 Jan 2026 | MHRSD decisions — marketing and sales professions 56 | 60% Saudization; sales list includes ICT equipment sales specialists; marketing wage floor SAR 5,500 | 19 Apr 2026 |
| 22 Jan 2026 | Evolved Nitaqat Procedural Guide 2026 23 | Entity-based assessment; dynamic thresholds; Yellow band removed; Low Green restrictions; small-entity exemption removed | Apr 2026 – Dec 2028 |
| 15 Apr 2026 | Qiwa contract documentation rule 4 | Saudi employee counts only with an electronically documented, authenticated contract | 15 Apr 2026 |
| 4 Oct 2026 | Administrative support professions 7 | 100% Saudization across 69 additional roles | 4 Oct 2026 |
| 27 Oct 2026 | Accounting professions 78 | 50% Saudization, rising to 70% over five years | 27 Oct 2026 |
| 14 Feb 2027 | Project management professions 7 | 70% Saudization, scope ≥3 workers | 14 Feb 2027 |
The profession-level wave
Between January 2025 and January 2026 the MHRSD issued localisation measures covering 269 professions and then a sequence of higher, profession-specific rates 8. Engineering professions moved to 30% with a SAR 8,000 wage floor, covering 46 roles and requiring Saudi Council of Engineers accreditation, with implementation six months after the 31 December 2025 decision 6. Procurement professions moved to 70% for establishments with three or more workers in twelve roles including procurement manager, contracts manager and warehouse keeper 6. Marketing and sales professions moved to 60% from 19 April 2026 for establishments with three or more workers; the sales list expressly includes ICT equipment sales specialists, and the marketing decision carries a SAR 5,500 wage floor 56. Accounting professions, at 40% since October 2025, reach 50% from 27 October 2026 on a path to 70% over five years; administrative support professions reach 100% across 69 roles from 4 October 2026; and project management professions reach 70% from 14 February 2027 78.
| Profession family | Quota | Scope threshold | Wage floor to count | In force | Source |
|---|---|---|---|---|---|
| ICT engineering, development, technical support | 25% per group | ≥5 workers per group | SAR 7,000 specialised / SAR 5,000 technical | Since 27 Jun 2021 | 1 |
| Engineering (46 accredited roles) | 30% | ≥5 workers | SAR 8,000 | From mid-2026 | 6 |
| Sales (incl. ICT equipment sales specialists) | 60% | ≥3 workers | Profession-specific criteria | 19 Apr 2026 | 56 |
| Marketing | 60% | ≥3 workers | SAR 5,500 | 19 Apr 2026 | 56 |
| Procurement and contracts | 70% | ≥3 workers | Per decision | From mid-2026 | 6 |
| Accounting | 50% → 70% over five years | Per decision | Per decision | 27 Oct 2026 | 78 |
| Administrative support (69 roles) | 100% | Per decision | Per decision | 4 Oct 2026 | 7 |
| Project management | 70% | ≥3 workers | Per decision | 14 Feb 2027 | 7 |
What it adds up to for a technology vendor
Exhibit 3 applies the quotas to an illustrative 100-person Kingdom entity of a systems integrator. The role mix is an assumption chosen to be representative, not a benchmark; readers should substitute their own. Under that mix the entity needs about 42 Saudi employees once every decision above is in force (February 2027), rising to about 44 as accounting reaches 70%. That compares with the 25 a vendor would plan for if it read only the ICT decision. The arithmetic ignores the separate Nitaqat band requirement, which is computed on a different base (all employees, with a SAR 4,000 wage floor and Qiwa-documented contracts) and may bind first or second depending on the activity code and size 24.
| Role family | Assumed headcount | Applicable quota | Saudis required (Feb 2027) | Saudis required (accounting at 70%) |
|---|---|---|---|---|
| ICT engineers, developers, technical support | 55 | 25% | 13.75 | 13.75 |
| Project managers | 12 | 70% | 8.4 | 8.4 |
| Sales and marketing (incl. ICT equipment sales specialists) | 10 | 60% | 6 | 6 |
| Accredited engineering roles | 6 | 30% | 1.8 | 1.8 |
| Accounting and finance | 6 | 50% → 70% | 3 | 4.2 |
| Procurement and contracts | 5 | 70% | 3.5 | 3.5 |
| Administrative support | 6 | 100% | 6 | 6 |
| Total | 100 | Blended | 42.45 | 43.65 |
Two timing effects sharpen the picture. First, the quotas phase in over 2026–27, so a vendor that mobilised in 2025 on a 25% plan has already crossed the sales and procurement lines and will cross the project-management line in February 2027 without changing its organisation. Second, Qiwa documentation became a counting condition on 15 April 2026: a Saudi employee without an electronically documented and authenticated contract does not count towards any ratio, so an entity's measured Saudization can fall on a compliance technicality while its headcount is unchanged 4.
Counting rules and economics
- Wage floors are counting conditions, not minimum wages: a Saudi earning below the floor is employed lawfully but does not enter the ratio (SAR 4,000 for Nitaqat; SAR 7,000 / 5,000 for ICT specialised / technical roles; SAR 5,500 for marketing; SAR 8,000 for engineering) 125610.
- Thresholds are per profession group: the ICT percentage applies to each of the three functional groups separately, and a group with four or fewer workers is outside scope; the newer sales, marketing, procurement and project-management decisions apply from three workers in the listed professions and the engineering decision from five 156710.
- Entity-based assessment means a vendor cannot isolate a low-Saudization delivery branch from a high-Saudization head office if both carry the same activity code 3.
- Nitaqat band incentives and HRDF co-funding instruments reduce the first-years cost of Saudi hires for compliant employers; the exact instruments and rates are set by HRDF programme terms and change over time, so they should be modelled from current HRDF publications rather than assumed 11.
Implications
For vendors. Model Kingdom headcount by profession code, not by entity ratio; the profession decisions bind independently of the band. Audit Qiwa profession codes and contract documentation now, because misclassified roles and undocumented contracts both reduce the measured ratio. Price Saudi roles into bids for the 2027 project-management threshold rather than the 2026 position. Treat the Nitaqat band as a delivery risk with a named owner: a slip to Low Green restricts the visas a client programme depends on.
For buyers. Ask for profession-level compliance evidence (Qiwa extracts by profession group) alongside the Nitaqat certificate, and ask how the vendor reaches the February 2027 project-management quota without changing the delivery team the proposal names. Sequence contract awards so that the vendor's Saudi hiring plan is funded before mobilisation rather than promised after it.
Desk research completed 7 October 2026. Primary instruments are MHRSD ministerial decisions and the Evolved Nitaqat Procedural Guide 2026, read through contemporaneous alerts by Al Tamimi & Company (September 2026), Clyde & Co (June 2026), DLA Piper (August 2026), EY (February 2026), EIG Law and Dezan Shira's Middle East Briefing (2026), through Gulf Business reporting (February 2026), and through 2020–21 reporting by Argaam and Albright Stonebridge Group, and a Qoyod explainer, on Decision 28889. The blended-requirement computation in Exhibit 3 is our own and rests on the stated role-mix assumption.
- Quota parameters (thresholds, wage floors, grace periods) are set in ministerial decisions and procedural guides that are amended from time to time; values should be confirmed on the MHRSD and Qiwa platforms before use in a bid.
- The Nitaqat band formula is activity- and size-specific; this briefing does not compute band thresholds for any activity code.
- Exhibit 3 is illustrative: the role mix is assumed and the result scales with it.
- Secondary sources (law-firm and advisory alerts) were used to read the instruments; where they differ on an effective date by a few days (for example the start of the 2026 cycle in April 2026), the briefing uses the month.
- 01MHRSD Ministerial Decision 28889 (18/2/1442 AH, 5 October 2020) localising ICT professions at 25% per functional group; Albright Stonebridge Group, 'Saudi Arabia Enacts New Localization Rules for the ICT Sector', 16 October 2020; Argaam, 'HRSD ministry says 25% Saudization in communications, IT sector starts today', 27 June 2021. https://www.argaam.com/en/article/articledetail/id/1477489
- 02Al Tamimi & Company, 'Saudi Arabia's 2026/2027 Saudisation Overview — The Evolved Nitaqat Programme and New Sector Specific Localisation Requirements', 22 September 2026 (Procedural Guide issued 22 January 2026; cycle April 2026 to December 2028; small-entity exemption removed; SAR 4,000 counting threshold). https://www.tamimi.com/news/saudi-arabias-2026-2027-saudisation-overview/
- 03Clyde & Co, 'Saudi Arabia's Developed Nitaqat Programme: Key updates from May 2026', 25 June 2026 (entity-based model; dynamic thresholds; band structure; Low Green restrictions; Ministerial Decision 182495 as legal framework). https://www.clydeco.com/fr/insights/2026/06/developed-nitaqat-programme-key-update
- 04Dezan Shira & Associates, Middle East Briefing, 'Saudi Arabia's Nitaqat 2026 Update: Latest Quotas by Sector and What Foreign Employers Need to Comply Now', 2026 (Qiwa contract documentation mandatory from 15 April 2026; new cycle from April 2026; Yellow tier eliminated). https://www.middleeastbriefing.com/news/?p=6349
- 05EY, Tax Alert 2026-0386, 'Saudi Arabia increases Saudization rates for roles in the sales and marketing sectors', 9 February 2026 (60% requirement; three-month grace period). https://globaltaxnews.ey.com/news/2026-0386-saudi-arabia-increases-saudization-rates-for-roles-in-the-sales-and-marketing-sectors
- 06EIG Law, 'Saudi Arabia Expands Saudization Across Engineering, Procurement, Marketing, and Sales Roles', 2026 (engineering 30% and SAR 8,000, 46 roles, decision of 31 December 2025; procurement 70%, 12 roles; marketing and sales 60% including IT and communications equipment sales specialists). https://eiglaw.com/saudi-arabia-expands-saudization-across-engineering-procurement-marketing-and-sales-roles/
- 07DLA Piper, 'Saudi Arabia announces further Saudisation increases for key professions', 27 August 2026 (administrative support 100% from 4 October 2026; accounting 50% from 27 October 2026; project management 70% by 14 February 2027; sports centres 15% from 18 November 2026). https://knowledge.dlapiper.com/dlapiperknowledge/globalemploymentlatestdevelopments/2026/-saudi-arabia-announces-further-saudisation-increases-for-key-professions
- 08Gulf Business, 'Sales and marketing added to Saudisation framework in 2026', 3 February 2026 (269 professions announced 26 January 2025; accounting path from 40% to 70% over five years; engineering and procurement decisions). https://gulfbusiness.com/en/2026/jobs/326859-2/
- 09Deloitte Middle East, 'Saudization percentages announced for a new set of professions' (purchasing 50% and project management 35% announced 3 April 2023, effective 24 December 2023) — the prior rates superseded by the 2025–26 decisions. https://www.deloitte.com/middle-east/en/services/tax/perspectives/me-immigration-updates-sa.html
- 10Qoyod, 'Saudization of ICT Professions: Decree 28889 and 25% Per Functional Group' (per-group calculation; ≥5 workers scope; wage floors as counting conditions). https://www.qoyod.com/en/learn/ict-professions-saudization-28889/
- 11Human Resources Development Fund (HRDF) support instruments for Saudi hires and Nitaqat band incentives, as summarised in Mercans, 'Saudization (Nitaqat)' glossary, 2026, and in the HRDF's own programme publications. https://mercans.com/glossary/saudization-nitaqat/
- HRDF
- Human Resources Development Fund (Hadaf)
- ICT
- Information and communications technology
- IT
- Information technology
- MHRSD
- Ministry of Human Resources and Social Development (Saudi Arabia)
- Qiwa
- MHRSD's labour-market services platform
- SAR
- Saudi riyal
- SCE
- Saudi Council of Engineers
wesolutions Research. Desk-based analysis of Ministry of Human Resources and Social Development (MHRSD) decisions and procedural guides as reported by the Ministry and by tier-one law-firm and advisory alerts; all figures carry an endnote.
Public.
Every exhibit in this report can be downloaded as a CSV file, with its source line, for independent re-scoring.