Saudization Updates 2026: Key Changes in Saudi Arabia Labor Regulations
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- 4 min read
February 7, 2026 | VisasUpdate.com
By Xavio | Riyadh
Employers in Saudi Arabia must prepare for significant Saudization updates 2026, including new GOSI contribution payment methods, higher localization requirements for marketing and sales roles, and restrictions on temporary work visas.
New GOSI Contribution Payment Methods
The General Organization for Social Insurance (GOSI) has rolled out new digital payment options for monthly social security contributions. Employers can now pay directly through the GOSI online portal using virtual account details or credit card, replacing the previous bank transfer-only system.
All registered companies will receive an email with their unique virtual account number. Invoices, payment tracking, and receipts are now exclusively available in the employer portal. Employers should activate their GOSI account immediately and update internal finance processes accordingly.
Saudization Updates 2026: Marketing Professions
The Ministry of Human Resources and Social Development (MHRSD) has increased the Saudization requirement for private-sector companies employing three or more workers in 10 specified marketing professions (including marketing manager, public relations manager, marketing specialist, and graphic designer).
Effective April 19, 2026, at least 60% of these roles must be filled by Saudi nationals (up from 30%). Saudi professionals count toward the quota only if their GOSI-registered monthly salary is at least SAR 5,500.
Read more: MHRSD Official Website
Saudization Updates 2026: Sales Professions
Similarly, companies with three or more workers in nine sales professions (including sales manager, sales specialist, sales representative, and commodity broker) must achieve 60% Saudization by April 19, 2026 (previously 15% for certain categories with five or more workers).
Non-compliance may result in penalties such as suspension of MHRSD services, including work permit renewals and employee transfers.
Temporary Work Visa Suspension
Based on recent practice observations, Saudi authorities have suspended acceptance, processing, and issuance of Temporary Work Visas for nationals of the following countries: Algeria, Egypt, Ethiopia, India, Indonesia, Iran, Iraq, Jordan, Libya, Morocco, Nigeria, Pakistan, Somalia, Sudan, Tunisia, Türkiye, and Yemen.
Employers relying on short-term foreign talent should explore alternative staffing solutions and monitor official channels for updates.
Latest Regulatory Context from 2025
The 2026 Saudization updates are part of a broader series of reforms. Employers should also be aware of these key changes implemented in 2025, which form the regulatory foundation for current policies.
New Work Permit Classification System (Effective July 2025)
In July 2025, Saudi Arabia implemented a new work permit system that categorizes foreign workers into three tiers based on skill level: high-skilled, skilled, and basic. Key factors in this classification include:
Occupation type according to the Saudi Standard Classification of Occupations (SSCO).
Announced minimum salary levels for each tier.
Required professional accreditation (Qualification or Skills Verification Program).
An age limit of 60 years for workers in the "basic" category.
This system prioritizes high-skilled global talent and directly affects the hiring and renewal of foreign employees.
Pause on Block Work Visa Quotas (Mid-2025)
To manage operations during the Hajj season (June 4-9, 2025), the MHRSD temporarily paused the issuance of new block work visa quotas for nationals from 14 countries until the end of June 2025.
This pause applied to the block visa system on the QIWA portal, which allows companies to hire foreign workers in bulk. The affected countries included major labor-sending nations such as India, Pakistan, Egypt, Nigeria, Bangladesh, and Ethiopia.
New Ultimate Beneficial Ownership (UBO) Regulations (Effective April 2025)
In a push for corporate transparency, new UBO rules require companies to identify and report individuals who ultimately own or control at least 25% of the company's shares or voting rights.
Companies must maintain a local UBO register and report any changes within 15 days. Non-compliance can result in fines of up to SAR 500,000 (approx. $133,000). This regulation impacts all company formation and ownership verification processes.
Affected businesses are advised to review workforce composition, accelerate Saudi recruitment, and leverage government support programs to meet the new Saudization updates 2026 requirements within this evolving regulatory landscape.
Frequently Asked Questions – Saudization Updates 2026
What are the new Saudization rates for marketing and sales professions in 2026?
Both sectors require 60% Saudi nationals effective April 19, 2026 (previously lower percentages applied).
What is the minimum salary for Saudi marketing professionals to count toward Saudization?
The monthly salary registered with GOSI must be at least SAR 5,500.
What are the new payment options for GOSI contributions?
Payments can now be made via virtual account or credit card directly on the GOSI portal, in addition to traditional bank transfers.
Which nationalities are affected by the temporary work visa suspension?
Nationals of Algeria, Egypt, Ethiopia, India, Indonesia, Iran, Iraq, Jordan, Libya, Morocco, Nigeria, Pakistan, Somalia, Sudan, Tunisia, Türkiye, and Yemen.
How does the new 2025 work permit system affect hiring?
The system classifies foreign workers into high-skilled, skilled, and basic categories based on occupation, salary, and qualifications. This affects visa processing and imposes an age limit of 60 for basic workers.
What are the penalties for non-compliance with Saudization rules?
Possible suspension of MHRSD services, including work permit renewals and employee transfers.
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