Saudization
In one sentenceA government policy to increase the employment of Saudi citizens in the private sector, applied through required percentages for each activity and business size, and Saudization decisions for specific occupations.
Simply put
Saudization means a share of your employees must be Saudi, and some occupations or activities may be limited to Saudis by special decisions. The required percentages differ by activity and size and are updated, so check them on the Qiwa platform and in the competent authority's decisions.
For the accountant and the owner: the Saudization rate affects the business's services, such as issuing visas, so it is part of planning hiring costs, not only an HR decision.
Worked example
A store has 20 employees, 6 of whom are Saudi (a simplified calculation for illustration; the official calculation has its own counting rules).
Number of Saudi employees6
Total employees20
Approximate Saudization rate: 6 ÷ 2030%
Formula: Number of Saudi employees ÷ total employees
Don't confuse it with
Nitaqat programSaudization is the goal and the policy, while Nitaqat is the program that measures the business's rate and classifies it.