Tawteen Guide 2025: New updates, ratios, and standards that every organization should know

Introduction: Why do you need to understand "localization" today more than ever?

In 2025, "Saudization" is no longer just a recruitment policy, but a strategic factor that determines the sustainability and competitiveness of organizations in the Saudi market. Many business owners and HR managers are wondering: How do we properly implement the new decisions? What percentages are required? When will penalties be imposed?
This practical guide provides a detailed and simplified explanation of all stages of Tawteen 2025 - from definition and ministerial decisions to calculation methods, digital platforms (Qiwa/Taqat/Jadarat), and support programs (HRDF) - with a 90-day implementation roadmap, templates, checklists, and KPI dashboard, so that your organization comes out with an actionable compliance plan from today.

What is "localization"? Definition, goals, and why it matters to businesses

"Tawteen" is a national program to increase the participation of Saudi cadres through gradual and deliberate replacement in occupations that can be filled by qualified nationals, while linking employment to training and professional accreditation to ensure quality and continuity. It differs from purely quantitative solutions because it focuses on the quality of jobs and competencies and their impact on productivity and business value.
For organizations, compliance is not only a regulatory burden, but a human capital investment that unlocks government contracts, reduces regulatory risk, and enhances organizational reputation. Understanding the mechanisms and operating them accurately has become a competitive necessity for every organization operating in the Kingdom.

Define "Tawteen" briefly and differentiate from "Nitaqat" to ensure faster compliance

The difference can be summarized as follows: "Nitaqat measures how much you hire, while Tawteen is concerned with who and how you hire. "Tawteen combines recruitment, qualification, accreditation, and minimum wage, and is an advanced stage in the smart incentive and compliance system. Organizations that start early gain an immediate competitive advantage in contracting, funding, and support.

How does "localization" support labor market goals and enhance HR compliance?

The program supports three pillars: Raising the competency of Saudis through training, reducing reliance on foreign labor in strategic sectors, and improving organizational compliance through clear frameworks and measurable KPI's. Digitally, linking with Qiwa/Taqat/Jadarat enables real-time compliance monitoring and accelerates reporting and internal control.

The latest "localization" updates in 2025 in a nutshell

Decision 2025/01/26 and the grace period: What has changed in Tawteen?

On January 26, 2025, an update to the Localization Guide for Engineering Technician Occupations was approved. Establishments with five or more workers in the targeted occupations are required to achieve the 30% ratio within a 6-month grace period ending July 27, 2025. Saudi nationals will only be counted in the ratio if their salary is ≥ SR5,000 and they hold a professional credential. The goal is to move from formal localization to qualitative, competency-based localization.

Implementation begins 07/27/2025: Direct operational implications for "localization"

As of July 27, 2025, the decision came into effect. Non-compliance is subject to warnings, suspension of services, and fines in accordance with regulatory decisions. Operationally, GOSI staff data must be updated and linked with Qiwa, and an internal localization coordinator must be appointed to follow up on indicators and document actions.

30% ratio to localize engineering technical professions and a wage limit of SAR 5,000 - are you ready?

Required: 30% Saudi nationals among qualified technicians, with a minimum salary of SAR 5,000 and professional accreditation. The challenge is to achieve the ratio without hurting productivity. The solution is to redistribute tasks, training and gradual replacement to turn compliance into a competitive advantage.

Is your organization included in Tawteen? Scope and Eligibility

Number of workers and targeted sectors: When do Tawteen rules apply?

The rules apply to all private establishments with five or more employees within the specified occupations. Sectors include: Construction, Energy, Manufacturing, Engineering Services, and Information Technology. The scope is determined by social insurance occupation codes, so the data must be matched with the Saudi Standardized Classification of Occupations.

Matching job title to reality to ensure Emiratization

Many rejections occur because the title is different from the actual job. To avoid this:

• See Titles and Tasks vs. Saudi Standardized Classification.
• Update job descriptions within the HR system to reflect reality.
• Document the scope of the work and its relevance to the target profession to ensure accountability.

Professional accreditation requirement and its impact on Tawteen calculation

Saudis are not counted in technical and engineering professions unless they have a valid professional credential (e.g. Saudi Board of Engineers). Start early with the registration process, periodically check the validity of credentials, and incorporate this into employment contracts and individual development plans.

How to calculate the "localization" percentage? The formula and options to reach compliance

Step-by-step "localization" equation with numerical example and approximations

Emiratization ratio = (number of Saudis meeting the conditions ÷ total workers in the targeted occupations) x 100.
A Saudi only counts if their salary is ≥ SR5,000, they are certified, and enrolled in GOSI full-time.
Example: The company has 10 technicians, of which 3 are Saudi, but one has a salary of less than 5,000; so only 2 Saudis are counted: (2÷10)×100 = 20%. The organization needs to raise the ratio to 30%. Simple rounding is allowed but maintaining monthly accuracy.

Substitution or net growth? The best way to quickly increase "localization"

The two strategic options: Substitution (replacing non-Saudis) and net growth (hiring additional Saudis). Substitution is faster but may cause operational disruption if not managed gradually. Net growth supports knowledge transfer and sustained productivity. The most successful models are hybrid: Hire an additional 10-15% and then gradually replace with short-term contracts.

[Checklist] Quick Data for Tawteen Account (Salaries/Appropriations/Titles)

Roadmap to implement Tawteen within 90 days

Days 0-30: Tawteen audits, title alignment, opening recruitment channels

Start with a thorough audit of GOSI data, salaries and titles, then match them to the Saudi classification. Open channels via Taqat/Jadarat with ads that specify the skills, salary, and nature of the contract. Assign a localization coordinator to submit weekly reports and standardize communications.

Days 31-60: Mentor recruitment, training and certification to increase Tawteen's readiness

Implement targeted recruitment of Saudis based on skill gaps, and start internal and external training programs. Work on professional certifications, create individual development plans (IDPs), and provide expert mentors to accompany new hires.

Days 61-90: Final Verification, Evidence Documentation, and Simulated Localization Inspection

Conduct a final compliance review and gather evidence: Contracts, certificates, payroll, monthly reports in a consolidated folder. Conduct a simulated internal inspection. When gaps are found, submit a corrective plan to avoid fines.

Digital platforms in "localization": Qiwa / Taqat / Jadarat

When do we use each platform in the localization journey? Contracts, Advertising, Nomination, Training

• Qiwa: Manage contracts, updates, and official reports.
• Taqat: Job posting, candidate recruitment, and interview management.
• Jadarat: Professional tests and smart filtering before hiring.
  Recommended sequence: Taqat → Jadarat → Qiwa to minimize recruitment time and enhance transparency.

Integrate data and avoid common "localization" errors (duplication/different labels)

The most common errors: Different labels, duplicate registrations, and outdated data. To avoid:

• Standardize nomenclature and code across platforms.
• Check and update everyone's national identity.
• Enable automatic integration in Qiwa to link payroll and hours to GOSI.

Recommended internal templates to accelerate Tawteen compliance

• Plan-To-Hire for annual needs and targeted careers.
• Monthly KPI tracker (Saudi hires/compliance/accreditations).
• An internal inspection model to simulate ministry visits.
  These templates increase the speed of compliance and minimize human error.

Incentives and support for successful localization (HRDF and HR ecosystem)

From recruitment to job stability: How do programs support the Emiratization journey?

HRDF provides comprehensive support:

• Tamhir: Partial coverage of training rewards.
• Financing technical/vocational training.
• Wage subsidies up to 24 months for new Saudis.
  The benefit isn't just financial, it improves loyalty and retention and lowers the cost of compliance.

Building a Business Case for Localization Cost Recovery and Margin Improvement

Treat "localization" as a long-term investment: Calculate direct costs (salaries/training/recruitment) versus indirect returns (avoided fines/government contracting opportunities). Use ROC/Compliance ROI to show the impact to management.

Measuring the Return on Localization: ROI indicators that matter to management

Adopt indicators such as: Annual Compliance Rate, Retention Rate, Cost-to-Benefit, and Productivity Increase after Localization. Monitor them quarterly to make realistic budget and expansion decisions.

Localization risk management and sanctions: What happens when you don't comply?

Types of violations and escalation paths in Tawteen

Three categories: Procedural (delayed documentation/update), Operational (non-Saudi nationalized occupation/unrealized minimum wage), and Structural (failure to achieve the ratio/misleading data). Pathway: Warning → suspension of services → fines/partial closure with an option to settle within 30 days.

Documentation of evidence: What inspectors typically ask for in a "localization" inspection

Qiwa e-contracts, GOSI-compliant payrolls, professional credentials, monthly ratio reports in detail. Collect them in a unified digital folder named Saudization_Audit with a date stamp of the last update.

A contingency plan to address Tawteen gaps before penalties are imposed

When the ratio drops: Internal review within 5 days, temporary replacement/promotion of trainee via Taqat, evidence-based corrective report within 30 days. This shows good faith and commitment and increases the likelihood of exemption/mitigation.

Sector specificities in localization: Lessons and Practical Applications

Construction and infrastructure: The roles of surveyors, draftsmen and road monitors in Tawteen

Challenging sector; surveyors, draftsmen, and road monitors are targeted at ≥30%. Solutions: Extensive on-site training, partnerships with technical institutes and contractors, and field incentives for challenging environments.

Manufacturing and energy: Electromechanics and O&M under "localization" requirements

Focus on electrical/mechanical/operation/maintenance with progressively higher Saudization percentages. Establish dual training programs with technical colleges to ensure transfer of experience before full replacement.

Technology and information: Precision instrumentation and control and its impact on "localization"

An industry that is leading the way in achieving high percentages: Careers such as systems analyst, cybersecurity, and software engineer. Incentives include support for national AI and cybersecurity programs.

Supply and demand gaps: How do we fill them with training under Emiratization?

The reason for the delay is often a lack of specialized technical skills. Address the gap with short programs (3-6 months) in design/control, safety, and small business management, with active partnerships with technical colleges.

Measuring and monitoring "localization": Facility-level dashboard

Practical KPIs for "localization": Ratio, TTM, Credits, Wages, Turnover

Adopt 5 indicators: Overall Emiratization Rate, TTM (Time to Target), Number of Professional Certifications, Average Wages of Saudis vs. Non-Saudis, and Turnover Rate. Collect them monthly in a dashboard to predict risks early.

Monthly review cycle and internal quality checks for Tawteen

Conduct monthly audits: Audit Qiwa contracts/salaries, match occupations to reality, analyze withdrawals, and examine the impact of organizational changes. Assign a localization coordinator to update ratios and reporting; this promotes transparency and readiness for oversight.

Comparing "Localization of Engineering Technical Professions 2025" vs. "Nitaqat"

Frequently Asked Questions (FAQ) by role

For HR teams

Q: Does a Saudi trainee count towards the ratio?
A: Yes, if they are officially registered in Taqat and participate in an approved program for ≥12 weeks.
Q: What is the fastest way to raise the ratio before inspection?
c: Run qualified Saudi temporary contracts via HRDF/Tamehair with full documentation in Qiwa.

For executives

Q: Does non-compliance affect the credit rating?
A: Yes, some institutions tie funding to localization compliance, especially for government projects.
Q: How do we measure the return on "localization"?
C: Compare the cost of salaries/training + HRDF support versus increased government contracts and reputational gains/risk.

For candidates and employees

Q: Does "localization" give faster promotion opportunities?
C: Often yes, with early development paths in targeted professions.
Q: How do I know if my occupation is covered?
c: Via Qiwa's query service for localized occupations.

Process and resource "localization" supplements

Localization Quick Calculation Template (Input/Output) and Instructions for Use