# What is Saudization?

Saudization is the Saudi national policy requiring private-sector employers to hire a minimum proportion of Saudi nationals, enforced through the Nitaqat banding system.

## Saudization explained

Sector-specific Saudization targets apply on top of the general Nitaqat framework, and several professions have been progressively restricted to Saudi nationals only.

Compliance is assessed on genuine employment: nationals must be registered with GOSI, paid at or above the applicable threshold, and performing real work.

## Related terms

- [Nitaqat](https://neuralhr.ai/en/hr-glossary/nitaqat): Nitaqat is Saudi Arabia's Saudization programme, which grades private-sector establishments into coloured bands according to the proportion of Saudi nationals they employ.
- [GOSI](https://neuralhr.ai/en/hr-glossary/gosi): GOSI is Saudi Arabia's social insurance authority, collecting mandatory contributions from employers and employees to fund pensions and occupational hazard cover.
- [Qiwa](https://neuralhr.ai/en/hr-glossary/qiwa): Qiwa is the Saudi Ministry of Human Resources digital platform used to authenticate employment contracts, manage work permits and track establishment compliance.

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Canonical page: https://neuralhr.ai/en/hr-glossary/saudization
Last verified: 2026-08-01

Published by NeuralHR.AI — AI-native HR and payroll platform for the UAE, Saudi Arabia and India.