KSA This Week: Nitaqat wage bar rises to SR5,000, 17,000 hotel jobs, new Enforcement Law
This week from the Kingdom: a Saudi employee will soon need to earn SR5,000 a month to count fully in Nitaqat, rising to SR6,000 a year later; 19 new hotel projects worth SR6.7 billion are set to create more than 17,000 jobs; new Enforcement Law rules start on 29 October; Arada launched a $3.8 billion Riyadh project; Aramco awarded $763 million of offshore work; construction costs rose 2.2%; and the FII10 conference moved to 2027. Here is what it means for employers and businesses in Saudi Arabia.
Labour & Saudisation
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SR5,000 monthly wage a Saudi must earn to count fully in Nitaqat, rising to SR6,000 a year later |
The salary a Saudi employee must earn to count fully toward your Saudisation quota is going up. Under royal directives issued on 25 October, the Nitaqat threshold (the minimum wage at which a Saudi counts as one full worker, currently SR4,000) will rise to SR5,000 six months after the measures take effect, and to SR6,000 twelve months after that. Saudi Gazette, citing the Ministry of Human Resources and Social Development (MHRSD), dates the two steps to April 2027 and April 2028.
The change is part of a wider package announced as Saudi Energy and the National Water Company confirmed new electricity and water tariffs from 1 January 2027. The package also adds SR500 a month for civil service and military staff, retirees and social security families. The directive says the Nitaqat change is meant to lift wages and support lasting private-sector jobs for citizens.
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The TASC Take Check your payroll now. Any Saudi employee paid below SR5,000 (based on the wage registered with GOSI, the social insurance body) may stop counting as a full head in Nitaqat from around April 2027, and that could move your band. Decide early whether to raise pay, reshape roles or change hiring plans, and budget for the SR6,000 step in 2028. |
Source: Asharq Al-Awsat (SPA announcement)
Tourism & Investment
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17,000+ jobs expected from the first 19 approved hospitality projects |
Saudi Arabia has approved the first 19 projects under its Hospitality Investment Enablers Program, led by the Ministry of Tourism with the Ministry of Investment. The projects are expected to attract SR6.7 billion ($1.78 billion) of investment and create more than 17,000 jobs. They are spread across Al-Baha, Al-Ahsa, Jeddah, Asir and the Eastern Province, with 19 companies taking part, including BSF Capital, Sedal, Rikaz and Jenan.
The programme gives targeted support to cut operating costs and make hotel projects more viable in these destinations. Together the projects will add more than 3,000 hotel rooms, around 40% of them in coastal areas. The first is due to open by the end of 2026, with the rest opening through 2029. By 2030 they are expected to add more than SR2.4 billion a year to GDP and generate over SR5.3 billion in local content.
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The TASC Take Hotels in Al-Baha, Al-Ahsa and Asir need people who are hard to find locally: general managers, chefs, engineers and front-office teams. With openings spread from late 2026 to 2029, operators should plan recruitment and training now, build Saudi talent pipelines to meet hospitality Saudisation targets, and use contract staffing to cover pre-opening peaks. |
Source: Arab News (SPA)
Ministry & Legal
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54 articles in the Enforcement Law regulations, in force from 29 October 2026 |
Saudi Minister of Justice Dr. Walid Al-Samaani has approved the implementing regulations of the new Enforcement Law. The regulations take effect on 29 October 2026, the same day as the law, and were published in the official gazette, Umm Al-Qura, on 23 October. The law was issued under Royal Decree No. M/237.
The 54 articles set out the procedures, timelines and requirements for enforcing court rulings and legal obligations. The aim is to make it more efficient to recover what you are owed, while protecting the legal rights of both creditors and debtors. The rules set the requirements for registering bills of exchange and promissory notes on approved electronic platforms, and list the orders and decisions that can be challenged through formal objections. They also cover how rulings on alimony, child custody and visitation are enforced.
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The TASC Take If you collect money through promissory notes or court judgments, review your credit-control process this week. Register new promissory notes on the approved electronic platforms, and ask your legal team how the new timelines affect any recovery cases you already have open. |
Source: Saudi Gazette
Real Estate & FDI
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100,000 homes Arada plans to build in Saudi Arabia over three to five years |
UAE developer Arada is entering the Saudi market with a Dh14 billion ($3.8 billion) residential project in Al Rimal, in Riyadh's north-eastern growth corridor. The community will have about 3,500 villas and townhouses, plus a school, shops, a community centre and sports facilities. Construction is due to start in mid-2027 and take about five years, funded through a Capital Market Authority-regulated fund managed by Al Rajhi Capital.
Arada plans to build 100,000 homes in Saudi Arabia over the next three to five years, with projects in Jeddah and Makkah to follow, through Arada KSA, its partnership with Saudi investor Xtopia. Its chief executive said demand is driven mainly by Saudis buying homes, as the government targets 70% home ownership among citizens by 2030. Ownership passed 66% at the end of 2024.
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The TASC Take A new developer building at this scale will need project managers, engineers, site supervisors and sales teams in Riyadh, Jeddah and Makkah. With construction costs rising and many projects chasing the same people, developers and contractors should line up Saudisation-compliant teams early and use flexible staffing for the sales and handover phases. |
Source: The National
Energy & Oil
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$763m offshore EPC work awarded by Aramco, to finish within 18 to 23 months |
Saudi Aramco has awarded Abu Dhabi-listed NMDC Energy new projects worth Dh2.8 billion ($763 million) for offshore engineering, procurement and construction (EPC) work. NMDC Energy told the Abu Dhabi Securities Exchange on 23 October that the projects will take between 18 and 23 months to complete, which means work running into 2028. The company did not give further details of the scope.
The award adds to Dh2.2 billion of projects NMDC Energy won in the second quarter of 2026, and its order backlog stood at Dh3.3 billion at the end of June. NMDC Energy, a majority-owned subsidiary of NMDC Group, offers end-to-end services for the energy industry, from engineering, procurement and pipe-laying to fabrication, installation and commissioning. It reported first-half 2026 revenue of Dh9.5 billion.
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The TASC Take Offshore EPC work needs welders, riggers, marine crews, QA/QC inspectors and HSE (health, safety and environment) staff, often on rotation. Contractors and subcontractors bidding for Aramco packages should line up certified, Saudisation-compliant crews before work starts, because several offshore programmes compete for the same specialist skills. |
Source: The National
Construction & Economy
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2.2% annual rise in Saudi construction costs in September 2026 (GASTAT) |
Saudi Arabia's construction cost index rose 2.2% year on year to 104 points in September, up from 101.8 a year earlier, according to the General Authority for Statistics (GASTAT). The index has held at 104 points since June. The main drivers were a 4.4% rise in equipment and machinery rental costs and a 3% rise in energy costs. Labour costs rose 1.6%, and basic materials, which make up almost half the index, rose 1.7%.
Non-residential building costs rose faster, up 2.6%, with equipment rental up 5.8% and labour up 2%. Residential construction costs, which make up 77.5% of the index, rose 2.1%. The annual rate has eased slightly, from 2.7% in June and 2.3% in July and August.
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The TASC Take Cost growth is steady rather than sharp, but labour and equipment are rising fastest on commercial jobs. Contractors pricing multi-year bids should build in wage and rental escalation, and plan workforce numbers carefully, because idle crews and hired equipment are where margins leak. |
Source: Arab News (GASTAT data)
Investment & Events
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$250bn agreements and pledges signed through FII since its first edition, says the FII Institute |
The Future Investment Initiative (FII) Institute has moved FII10, the tenth edition of its flagship investment conference, to 2027. The event, themed "The Power of Legacy", was due to run from 26 to 29 October 2026 at the King Abdulaziz International Conference Center in Riyadh. The Institute said it would announce the new 2027 dates very soon, and that all current registrations and partnerships remain valid.
In a message to the FII community, Institute CEO Princess Dr. Maha bint Mishari Al Saud said the landmark tenth edition must deliver the full scale and quality members expect. FII was launched in 2017 by the Public Investment Fund (PIF). The Institute says its conferences have facilitated $250 billion in signed agreements and pledges since the first edition, and that its teams will contact delegates and partners directly.
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The TASC Take Big deals and partnerships are often announced at FII, so some signings expected this week may now shift into 2027. If you planned Riyadh meetings around the conference, keep those conversations going directly, and tie hiring plans to signed contracts rather than event dates. |
Source: FII Institute
TASC in Saudi Arabia
Saudization in 2026: key hiring rules for employers
The Nitaqat wage threshold for Saudi employees is rising to SR5,000 and then SR6,000, on top of new Saudisation quotas across more professions. Our guide sets out what changed this year, what it means for your Nitaqat band, and how to stay compliant while you hire.
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