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Saudi Arabia is taking significant steps to enhance local workforce participation in specialized jobs. The Ministry of Human Resources and Social Development has announced two major decisions to increase Saudization targets and introduce minimum wage standards, ultimately aiming to create improved opportunities for citizens in key sectors.
Understanding Saudization
Saudization, or “Nitaqat,” is a national policy designed to enhance the employment of Saudi citizens across both public and private sectors. This initiative aims to reduce dependence on expatriate labor and ensure a stronger representation of Saudi nationals in essential professions. The policy defines specific targets for businesses, mandating a certain percentage of Saudi workers based on the industry and job role. Compliance is monitored by the Ministry of Human Resources and Social Development, which also provides guidance on calculation methods, required documentation, and enforcement procedures.
New Measures for Engineering Roles
Under the first decision, the Saudization requirement in engineering professions will increase to 30 percent. This change specifically targets companies with five or more employees within 46 specialized engineering roles, including:
- Architect
- Power Generation Engineer
- Industrial Engineer
- Other Accredited Engineering Positions
A new minimum wage of SAR 8,000 will be implemented for Saudi engineers in both private and non-profit sectors. To qualify, professionals must possess accreditation from the Saudi Council of Engineers. This decision will be effective from December 31, 2025, with a preparatory grace period of six months for businesses to align their hiring practices and ensure proper accreditation.
The ministry emphasizes that this initiative will not only increase local participation but also enhance the work environment by fostering skilled and certified professionals within the sector.
Expanding Saudization in Procurement Professions
The second decision focuses on procurement roles in the private sector, establishing a Saudization target of 70 percent. This will apply to establishments employing three or more workers in 12 key procurement positions, including:
- Procurement Manager
- Contracts Manager
- Warehouse Keeper
- Other Procurement-Related Roles
This regulation will come into force on November 30, 2025, and companies will be given a six-month grace period to adjust and meet the new requirements. The ministry highlights that increasing Saudi participation in procurement roles will boost national engagement in crucial business operations, expand job opportunities for citizens, and enhance overall productivity in the sector.
Implementation and Compliance
To assist businesses throughout this transition, the Ministry of Human Resources and Social Development has published a comprehensive procedural guide on its website. This guide includes:
- A complete list of targeted professions
- Methods for calculating Saudization percentages
- Step-by-step compliance instructions
Companies are urged to adhere to these guidelines closely, as failure to meet the new targets may result in penalties, thereby reinforcing the government’s commitment to building a more locally-driven workforce. The ministry has characterized these measures as a strategic step toward enhancing employment opportunities for Saudis, improving workplace standards, and strengthening national participation in vital sectors.
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