Saudi Arabia ties Nitaqat credit to Qiwa contracts affecting expat permits

Headline: Saudi Arabia ties Nitaqat credit to Qiwa contracts, affecting expats

Saudi Arabia counts Saudi employees toward an employer’s Nitaqat rate only when their contracts are documented through Qiwa and they’re registered with social insurance.

Qiwa documentation now determines Nitaqat credit

The updated calculation took effect April 15. Registration with the General Organization for Social Insurance (GOSI) remains mandatory, but it no longer gives employers Saudization credit on its own, the Ministry of Human Resources and Social Development said.

A Saudi worker without an authenticated Qiwa contract is excluded from the calculation. That can lower an establishment’s Saudization rate and move it into a less favorable Nitaqat band.

Saudi Arabia separately required establishments to document at least 85% of all Saudi and non-Saudi employment contracts by April 30. The threshold increased to 90% on June 30.

The indirect impact on expats

The rule applies directly to Saudi employers and workers, but foreign employees face the practical consequences. A lower Nitaqat classification can restrict an employer’s ability to issue or renew work permits and iqamas, as covered in Saudi Arabia’s residency rules.

The catch for expats is that a Saudi colleague’s missing Qiwa record can affect the company’s immigration services even when the foreign employee’s own paperwork is complete.

Digital nomads, tourists and remote workers without Saudi employment contracts aren’t counted under Nitaqat. Their status instead depends on their visa or residence category.

Employers must align Qiwa and GOSI records

Contract documentation requires action from both the company and employee:

• Employer: Create the employment contract through Qiwa Business with the correct establishment, role, salary and terms.
• Employee: Review and authenticate the contract through a personal Qiwa account.
• GOSI registration: Keep the employee registered under the same establishment.
• Record matching: Check that Qiwa and GOSI details align so the worker appears in the Nitaqat calculation.

Foreign companies with Saudi entities, branches or sponsorship arrangements are subject to the same requirements. Employers must now maintain the 90% documentation rate while confirming every Saudi employee has both a documented Qiwa contract and active GOSI registration.