Saudi Arabia to Hike Accounting Saudization Quota to 50%
Saudi Arabia will increase the Saudization quota for accountants to 50% by October 2026, with targets reaching 70% by 2028.
Saudi Arabia is accelerating its workforce localization strategy, announcing that the Saudi accounting Saudization quota will rise to 50% effective October 27, 2026. This move is part of a multi-year, phased approach designed to integrate more nationals into the kingdom's vital financial sector.
A Phased Roadmap to 70% Localization
The Ministry of Human Resources and Social Development (HRSD), working alongside the Ministry of Commerce, has outlined a clear and aggressive timeline for these changes. Following an initial 40% mandate set for October 27, 2025, the government plans to continue increasing the requirement for Saudi nationals in the following stages:
- October 27, 2026: 50% Saudization rate
- October 27, 2027: 60% Saudization rate
- October 27, 2028: 70% Saudization rate
As these quotas climb, the permissible share of the workforce that can be comprised of non-Saudi accountants will steadily shrink, dropping from the current 50% to just 30% by 2028.
Who is Affected by the New Rules?
The regulations target private sector establishments that employ five or more workers across 44 designated accounting professions. However, there is an exception: licensed accounting offices will remain exempt from these specific quotas under a separate regulatory framework.
To ensure the quality of the localized workforce, the government has implemented strict criteria for Saudi nationals to be counted toward the mandatory quota. Simply hiring a national is not enough; they must meet specific professional and financial benchmarks:
- Professional Accreditation: Nationals must hold accreditation from the Saudi Organization for Certified Public Accountants (SOCPA).
- Salary Thresholds: Bachelor's degree holders must earn a minimum of SAR 6,000 per month, while diploma holders must earn at least SAR 4,500 per month.
Employers are also advised to be meticulous with their headcount calculations. The quota is subject to rounding; for instance, a firm with 23 accounting roles would be required to employ 12 Saudi nationals to meet the 50% threshold.
High Stakes: Penalties for Non-Compliance
The Saudi government is taking a hardline stance on enforcement, urging Chief Financial Officers (CFOs) to ensure that employment titles in their payroll data perfectly match their records with the General Organization for Social Insurance (GOSI).
Attempting to circumvent these requirements through role reclassification is strictly prohibited, as the HRSD maintains rigorous oversight of all localization efforts.
Failure to comply with the rising quotas can lead to severe operational consequences. Companies that fall short of the mandate face:
- Financial Penalties: Fines ranging from SAR 4,000 to SAR 6,000 per violation.
- Nitaqat Reclassification: Being moved to the 'Red' Nitaqat band.
- Operational Restrictions: An inability to issue new work permits or renew existing iqamas for expatriate staff.
- Blacklisting: Removal from official government supplier databases.