How to Calculate Your Saudization Percentage

• You need to know your Saudization percentage before you can fix it. Without the number, you are guessing at hires, guessing at timelines, and guessing at whether you will stay out of Red band next quarter.

• Here is how to calculate it — the weighted formula Developed Nitaqat uses, what each input means, and where to verify the result.

The basic formula

• At its core, Saudization percentage is a ratio:

• **Saudization % = (Weighted Saudi headcount ÷ Total weighted headcount) × 100**

• That percentage is then compared to a **required percentage** set by your economic sector and total establishment size. Your **band** — Red through Platinum — depends on how your actual rate compares to that required rate.

• The official calculation lives in the [MHRSD Nitaqat Mutawar procedural guide for 2026 (PDF)](https://www.hrsd.gov.sa/sites/default/files/2026-01/aldlyl-alajray-y-ntaqat-almtwr-alnskht-2026--1-.pdf). MHRSD also provides an [official calculator](https://es.hrsd.gov.sa/services/Inquiry/NitaqatCalculatorMotawar2026.aspx). [Qiwa](https://www.qiwa.sa/) shows your live band. Everything below explains the logic so you can plan hires before they hit GOSI.

Step 1: Count your headcount

• Start with every employee registered to your establishment through GOSI and Qiwa:

• **Saudi nationals** (including GCC nationals treated as local)
• **Expatriate employees** (non-GCC foreign workers)

• Only employees actively registered to your establishment count. Contractors, dependents, and employees registered to a different entity do not enter your calculation.

Step 2: Apply salary weighting

• Developed Nitaqat does not treat every Saudi equally. Salary weighting prevents establishments from listing Saudis on paper at token wages to inflate compliance without creating real jobs.

• Expatriate employees typically count at full weight (1.0 each) in the denominator.

• **Example:** You have 8 Saudis earning SAR 5,000 (full credit each = 8.0 weighted) and 4 Saudis earning SAR 3,500 (half credit each = 2.0 weighted). Your weighted Saudi headcount is 10.0, even though you have 12 Saudi employees on payroll.

• Additional weighting rules from the procedural guide:

• **Part-time and co-op Saudis** count at half weight (0.5)
• **Saudis with registered disabilities** receive a multiplier (up to a capped contribution)

• These adjustments reward genuine employment and penalize paper compliance.

Step 3: Calculate your actual percentage

• With weighted counts in hand:

• **Worked example:**

• Actual Saudization % = (16.5 ÷ 56.5) × 100 = **29.2%**

• Note: weighted Saudi total is 15.0 + 1.5 + 0.0 = 16.5.

Step 4: Find your required percentage

• Your required rate is not a flat number. It depends on:

1. **Your economic sector** (ISIC activity classification)
2. **Your total establishment headcount**

• Developed Nitaqat uses a logarithmic curve: larger establishments in the same sector generally face higher required rates. Sector consolidation under Nitaqat Mutawar merged similar activities so targets align with economic reality rather than arbitrary size buckets.

• The exact coefficients per ISIC4 activity are published in the MHRSD procedural guide. If you do not know your precise ISIC code, use your sector category as a directional starting point — then confirm on Qiwa.

Step 5: Determine your band

• Your band is a function of your **ratio**: actual percentage divided by required percentage.

• **Continuing the example:** If your required rate is 25% and your actual is 29.2%, your ratio is 1.17 — placing you in **High Green** (directional estimate).

• We break down what each band unlocks in [Nitaqat bands explained](/spaces/nitaqat-bands-explained).

Step 6: Account for the 26-week moving average

• Your band on Qiwa is not calculated from today's headcount alone. Developed Nitaqat uses a **26-week moving average** — roughly six months of historical performance.

• What this means in practice:

• A Saudi hire today moves your average incrementally, not instantly
• A Saudi departure hurts for weeks after they leave
• Short-term fixes that revert do not sustain a band change
• Plan compliance as a trajectory, not a single transaction

• When you model hires, project forward week by week. Our [Saudization calculator](/saudization-calculator) shows a 26-week trajectory so you can see when a planned hire actually moves your band.

Micro-establishments: the simplified rule

• If your establishment has **fewer than six total employees**, the full weighted formula does not apply. The requirement simplifies to: **at least one Saudi national on payroll.**

• Once you reach six employees, the standard calculation kicks in. Plan ahead — crossing that threshold can shift your compliance obligations overnight.

Profession-specific quotas: a separate calculation

• Your entity-level Saudization percentage and band are one gate. **Profession-specific quotas** are another.

• Certain roles — administrative support, HR, sales, marketing, engineering, pharmacy, and others — carry their own Saudization floors that tighten on a phased schedule through 2028. You can be Green at the entity level and still non-compliant for a specific profession.

• Always check both: entity band on Qiwa and profession quota status for roles you fill with expatriates.

Calculators vs. Qiwa: what to trust

• No third-party tool replaces Qiwa. Calculators help you answer "if I hire three Saudis at full credit, where am I in 26 weeks?" Qiwa answers "where am I right now?"

• Use our [Saudization calculator](/saudization-calculator) for planning. Confirm on Qiwa before issuing contracts or visa requests.

Common calculation mistakes

• **Counting unregistered employees.** Only GOSI-registered, Qiwa-documented employees count. Informal arrangements do not move your percentage.

• **Ignoring salary weighting.** Twelve Saudis on paper at SAR 2,500 contribute zero weighted credit. You may think you are compliant and still sit in Red.

• **Using a snapshot instead of a trajectory.** Today's headcount is not your band. Model the 26-week average before you celebrate or panic.

• **Forgetting profession quotas.** A Green entity band does not mean every seat is compliant. Audit role-level quotas separately.

• **Treating calculator output as official.** Directional estimates help you plan. Qiwa is the only number that matters for compliance.

What to do with your number

• Once you know your actual percentage, required percentage, and estimated band:

1. **Verify on Qiwa** — compare your estimate to the official band
2. **Calculate hires to Green** — how many full-credit Saudis move your 26-week average above the Medium Green threshold
3. **Check profession quotas** — identify roles where expatriate headcount creates separate risk
4. **Plan sourcing** — compliance hires still need to do the job; source and evaluate with the same rigor as any critical role

• For the full compliance picture, read the [Saudization (Nitaqat) 2026 employer guide](/spaces/saudization-nitaqat-2026-guide). For regional context, see [/compliance](/compliance).

• Your Saudization percentage is not a mystery. Weight your headcount, compare to your sector target, account for the 26-week average, and verify on Qiwa. That is the calculation — and it is the number that controls whether you can keep hiring tomorrow.