Saudi Arabia’s New Measures to Boost Saudisation in Key Sectors
Saudi Arabia has taken significant steps to enhance the participation of its citizens in the labor market by implementing new policies aimed at increasing Saudisation rates in specialized professions. These measures are part of a broader strategy to create more quality job opportunities and strengthen the country’s economic foundations.
Engineering Professions: A Major Shift
One of the key decisions involves raising the Saudisation rate for engineering professions to 30%. This means that 30% of the workforce in these roles must be Saudi nationals. In addition, the minimum wage for Saudi engineers in the private and non-profit sectors will be increased to SAR8,000 ($2,133) per month. This decision is set to take effect on December 31, 2025.
The policy applies to establishments that employ five or more workers across 46 specific engineering roles. These include positions such as architect, power generation engineer, and industrial engineer. To ensure compliance, employees counted toward the Saudisation target must be accredited by the Saudi Council of Engineers.
Companies will have a six-month grace period from the date of the announcement before the regulation comes into effect. This allows businesses time to adjust their hiring practices and meet the new requirements.
Procurement Roles: A Significant Increase
In another major move, the ministry has raised the Saudisation rate for procurement professions in the private sector to 70%. This change will become effective on November 30, 2025, and will apply to establishments with three or more employees working in 12 key procurement roles. These roles include procurement manager, contracts manager, and warehouse keeper.
Similar to the engineering sector, there will be a six-month preparation period to help companies align their workforce structures with the new requirements. This initiative aims to ensure that local talent is given priority in these critical areas of the economy.
Goals and Implementation
The Ministry of Human Resources and Social Development emphasized that these measures are designed to improve the work environment, expand employment opportunities for Saudi citizens, and increase national participation in essential economic sectors. By focusing on these areas, the government hopes to reduce reliance on foreign labor and promote long-term economic sustainability.
To support the implementation of these policies, the ministry has published a procedural guide on its official website. The guide outlines the professions covered, methods for calculating Saudisation rates, and the steps required for compliance. This resource is intended to assist businesses in understanding and adhering to the new regulations.
Compliance and Penalties
Establishments are urged to comply with the new rules to avoid potential penalties. The government has made it clear that failure to meet the Saudisation targets could result in legal consequences. This underscores the importance of proactive planning and adherence to the guidelines provided.
By introducing these changes, Saudi Arabia is taking a significant step towards building a more inclusive and self-sufficient labor market. The focus on engineering and procurement sectors highlights the strategic importance of these fields in driving the nation’s economic growth. As the deadline approaches, businesses will need to carefully review their staffing strategies to ensure they meet the new standards and contribute to the country’s vision of sustainable development.
