Saudization
السعودة
Definition
Saudization (Tawteen) is Saudi Arabia's national policy requiring private-sector companies to employ a minimum percentage of Saudi citizens. Mandated under the Nitaqat system, it aims to reduce unemployment among Saudi nationals and is a key pillar of Vision 2030's employment goals.
Why Saudization Matters in Saudi Arabia
Understanding Saudization is essential for any business operating in Saudi Arabia. The Kingdom's Vision 2030 economic transformation plan places heavy emphasis on labor market reform and nationalization. Companies that fail to comply with employment regulations face significant penalties including fines, service suspension, and visa blocks. Whether you are an HR manager, business owner, or employee, mastering this concept helps ensure compliance and operational continuity in the Saudi market.
Saudization Formula
The basic Saudization percentage is calculated as:
Saudization % = (Weighted Saudi Employees ÷ Total Employees) × 100
The 'weighted' count applies special multipliers: employees with disabilities count as 4, while part-time Saudis and those earning below SAR 4,000 count as 0.5.
Sector-Specific Targets (2025/2026)
Targets vary by industry — Medical Labs require 70%, Physiotherapy 80%, Engineering 30%, Accounting 40% (rising to 70% over 5 years). Use our Saudization Calculator to check your sector's specific target.
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