Documenting contracts through the Qiwa platform is a requirement for calculating localization within the Nitaqat system
In a strategic move aimed at regulating the Saudi labor market, the Ministry of Human Resources and Social Development announced a significant update to the mechanism for calculating Saudization ratios within the Nitaqat program. Under this update, documenting contracts through the Qiwa platform a mandatory requirement for counting Saudi employees towards establishments' Saudization quotas, effective April 15, 2026. This decision represents a qualitative leap in human resources management within the Kingdom, reflecting the government's commitment to implementing the highest standards of governance and digital transformation.
Historically, the Saudi Arabian labor market has undergone several radical transformations, most notably the launch of the Nitaqat program in 2011, which was specifically designed to incentivize establishments to employ Saudi nationals and combat unemployment. With the launch of Saudi Vision 2030, the pace of digital transformation has accelerated across all government sectors. The shift from traditional paper contracts to electronically documented contracts is part of this ambitious vision, aiming to eliminate irregular practices such as "sham Saudization" and ensure accurate and up-to-date data that reflects the actual employment situation in the private sector.
The importance of documenting contracts through the Qiwa platform for establishments and individuals
This new regulatory measure has far-reaching implications at both the local and regional levels. Locally, it ensures the protection of the rights of both parties (employees and employers) through a clear and electronically documented legal framework, significantly reducing labor disputes in the courts. Regionally and internationally, these steps enhance the attractiveness and competitiveness of the Saudi labor market and underscore the Kingdom's commitment to the International Labour Organization's standards regarding contract transparency and wage protection, making the Saudi work environment a model to be emulated in the Middle East region.
Legal basis and supporting ministerial decisions
This pivotal update is based on Cabinet Resolution No. (195) dated 4/4/1443 AH, which mandates the Ministry of Human Resources and Social Development to regulate and manage the contractual relationship between establishments and their employees. This mandate includes full oversight of the documentation, procedures, and regulation of employment contracts in the labor market. The Ministry clarified that this measure aims to enhance transparency, increase the reliability of labor market data, and improve establishments' experience in managing their contractual relationship with employees by unifying the source of contract data and directly linking it to the calculation of Saudization ratios.
“Qiwa” platform: The unified digital portal for the labor sector
The “Qiwa” platform is the unified and essential digital interface for labor sector services in the Kingdom, providing a comprehensive suite of electronic services that enable establishments to easily manage employment contracts and comply with relevant regulations. The platform has proven its high efficiency, having witnessed the creation and renewal of over 12 million electronically documented employment contracts to date. The Ministry continuously emphasizes the platform’s vital role in enhancing the transparency of contractual relationships and the stability of the work environment, urging all establishments to expedite the documentation of their employees’ contracts through the platform to ensure accurate calculations and avoid any negative impact on the establishment’s classification in the Nitaqat program.
