Saudization and Nitaqat: What Contractors Should Know About Supplied Manpower
How supplied manpower affects your Nitaqat ratio, why the supplier's own band matters to your site, and what to check before you sign.
Under Saudi HRSD regulations, supplied workers operating under valid Ajeer notices remain counted on the primary supplier’s Nitaqat establishment file, not the client contractor's file, so a contractor can add project headcount without lowering its own Saudization ratio.
Key takeaways
- Supplied personnel on Ajeer notices do not dilute the client contractor's Nitaqat Saudization percentage.
- A supplier in the Low Green or Red band loses Qiwa services, which can stop it keeping workers' permits current.
- Supplied crews cover civil, mechanical and electrical peaks without adding permanent staff to your file.
- Public sector and mega-project contracts may impose separate project-level Saudization requirements distinct from corporate Nitaqat.
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Whose Nitaqat file the workers count on
For contractors on large EPC projects, every directly hired expatriate counts against the company's Saudization ratio. Bringing on hundreds of tradesmen, such as pipe fabricators, scaffolders, and welders, through direct hiring means hiring Saudi nationals in proportion to keep the ratio.
When contractors engage temporary manpower through legally compliant supply arrangements backed by Ajeer notices, the expatriate workers are recorded on the supplier's establishment file within the Ministry of Human Resources and Social Development (HRSD) database. They do not enter the client contractor's establishment file. The contractor's own band is therefore not affected by the size of the supplied crew.
Why the supplier's Nitaqat band is your risk
Supplied workers do not affect your ratio, but they do depend on the supplier's band, because Qiwa limits services by band. Band effects as summarised by Al Tamimi & Co. in September 2026; check the current rules on Qiwa.
| Supplier's band | Qiwa services (as of September 2026) | Effect on supplied workers | Risk to your site |
|---|---|---|---|
| Platinum, High Green, Medium Green | Full access to visas, profession changes, work permit renewals and service transfers | Permits renewed and workers added as normal | Low |
| Low Green | New visa applications and profession changes suspended | Existing workers continue; adding workers or correcting a profession can stall | Moderate: scale-ups and corrections can be delayed |
| Red | Low Green restrictions, plus service transfers suspended and no work permits for non-Saudi employees | Permits cannot be renewed | High: workers can lose site access when permits lapse |
Ajeer temporary dispatch vs. Direct hiring on contractor quotas
The alternative to supply is hiring directly on your own file. That means visa fees, recruitment lead times measured in months, GOSI registration, iqama issuance, and Saudi hires to keep the ratio.
With manpower supply, labour becomes a cost of the project. When a turnaround or installation phase ends, the crew demobilizes; the end-of-service obligations stay with the supplier as the employer, and your Saudization ratio is unchanged. That matters most for contractors running several sites at once, in Dammam, Jubail, Yanbu or remote plants.
Corporate Nitaqat vs. Project-specific Saudization requirements
Procurement and HR teams need to keep two requirements apart: Corporate Nitaqat and Contractual / Local Content Saudization:
- Corporate Nitaqat: The statutory rating of your legal entity assessed by HRSD based on total employees registered under your Commercial Registration. - Project / Client Saudization: Specific contractual clauses mandated by project owners (such as Aramco, SABIC, the Royal Commission, or giga-project entities) requiring a set share of Saudi nationals in the project team on site.
While supplied manpower under Ajeer protects your Corporate Nitaqat, it does not automatically fulfill project-specific Saudi national headcount quotas unless the supplier provides qualified Saudi trades or supervisory personnel. Check the client contract for both.
How to check a supplier's Nitaqat standing
Three checks reduce the risk of a supplier losing services mid-project:
1. Ask for the Qiwa establishment certificate: before signing and at intervals during the contract, to confirm the supplier is in Medium Green or above. 2. Track Ajeer notice expiry dates: at least 30 days ahead, so renewals happen before gate passes lapse. 3. Agree replacement terms: state in the contract how quickly the supplier replaces a worker who cannot continue, and at whose cost.
To see which company documents Gulf Orbit provides and how worker documents are reviewed per project, visit our trust and compliance page, or submit your project staffing requirements via our manpower request form.
*This article is practical guidance for contractors in Saudi Arabia, not legal advice. Check requirements against current HRSD and Qiwa rules. Last reviewed: October 2026.* For the terms used here, see the glossary.
Frequently asked questions
Do supplied workers increase the number of Saudi nationals we need to hire?
No. Because workers supplied under Ajeer remain registered on the supplier's GOSI and Nitaqat file, they do not increase your company's total foreign workforce count, meaning your corporate Saudization hiring target remains unchanged.
What happens if our manpower supplier drops to Low Green or Red?
In Low Green, new visa applications and profession changes are suspended. In Red, service transfers are also suspended and work permits for non-Saudi employees cannot be issued or renewed, which can end workers' site access. Check the supplier's band before signing, and again during long contracts.
Can we ask for Saudi nationals in specific roles?
List any roles your contract requires to be filled by Saudi nationals in the RFQ. Availability for those roles is confirmed per request.
How do we verify a supplier's Nitaqat rating before signing a contract?
You can request an official Qiwa Establishment Status Certificate from the supplier, or verify their compliance standing through government prequalification channels and official chamber documents.