If you’re planning to open a hotel, restaurant, or catering business in Saudi Arabia, there’s one key regulation you can’t afford to ignore Saudisation. Also known as Nitaqat, this policy requires businesses to hire a certain percentage of Saudi nationals in their workforce.
For hospitality businesses, where expat workers have traditionally dominated, this means adjusting hiring strategies, training local talent, and ensuring compliance to avoid penalties. But beyond being a legal requirement, Saudisation is also a chance to build a skilled, sustainable workforce that aligns with Saudi Vision 2030’s push for economic diversification.
So, what does Saudisation mean for your business? How can you ensure compliance while maintaining smooth operations? Let’s break it down.
What is Saudisation?
In simple terms, Saudisation is a government program that mandates the hiring of Saudi nationals in the private sector. Managed by the Ministry of Human Resources and Social Development (HRSD), the policy is designed to:
- Reduce dependence on foreign workers
- Create more jobs for Saudi citizens
- Develop a skilled local workforce
For the hospitality industry—hotels, resorts, restaurants, cafés, catering businesses—Saudisation is now a must-follow rule, and the compliance targets are increasing in July 2025.
What Are the Saudisation Requirements for 2025?
Starting July 2025, hospitality businesses will be expected to meet specific Saudisation thresholds, which vary depending on the type of business.
For Hotels & Resorts:
- Minimum Saudisation: 22.60%
- Higher Compliance Levels: Up to 40.52%
For Restaurants & Catering:
- Full-service restaurants: 15.98%–26.81%
- Fast food outlets: 19.04%–30.76%
- Catering services: 16.97%–28.93%
- Coffee shops: 19.49%–40.60%
Why Compliance Matters: The Nitaqat System
Your Saudisation percentage determines your company’s Nitaqat category, which directly impacts your ability to operate.
🚨 Red Category (Non-compliant):
- No new visas for foreign workers
- Expat work permits won’t be renewed
- Heavy fines and potential shutdown risks
🟡 Low Green (Limited compliance):
- Restricted hiring options
- Harder to bring in foreign employees
🟢 Medium & High Green (Better compliance):
- Smoother visa processing
- Fewer hiring restrictions
🏆 Platinum Category (Fully compliant & exceeding targets):
- Fast-track work permits and visa approvals
- Priority in government contracts and incentives
If your business doesn’t meet the Saudisation thresholds, you risk losing access to new work permits, struggling to renew existing ones, and facing operational headaches.
How to Build a Saudisation Strategy
Achieving Saudisation isn’t just about meeting quotas—it’s about creating a long-term, sustainable workforce. Here’s how you can make it work for your business:
- Priorities Saudi hires in customer-facing roles (reception, waitstaff, front desk)
- Train local employees to take on leadership and management positions
- Use HRSD incentives, such as wage subsidies and training programs
- Regularly monitor your Saudisation percentage and adjust hiring plans accordingly
Many hospitality businesses are already seeing success by integrating Saudi employees into key operational roles while using government support to offset costs.
Final Thoughts: Turning Saudisation into an Advantage
Saudisation is a legal requirement, but it’s also an opportunity to build a strong, skilled local workforce that aligns with Saudi Arabia’s Vision 2030. Instead of seeing it as a challenge, think of it as a way to enhance your business with well-trained, locally invested employees.
At BM Events, we understand that Saudisation is more than just a requirement—it’s a key factor in building a successful hospitality business in Saudi Arabia. That’s why we offer comprehensive hospitality solutions, including workforce planning, recruitment support, and compliance guidance to help businesses meet Saudisation targets smoothly. Whether you’re launching a restaurant, hotel, or catering service, our expert team ensures you have the right staffing, premium accommodations, and seamless operations to thrive in the Saudi market. Partner with BM Events to navigate Saudisation effortlessly and create a strong, sustainable future for your business.
