Saudi Arabia’s Ministry of Human Resources and Social Development said it has issued two decisions to raise localization (Saudization) rates across a number of specialized professions, according to a statement.
The first decision raises the Saudization rate in engineering roles to 30% and sets a minimum monthly wage of SAR 8,000 in the private and non-profit sectors, implemented in partnership with the Ministry of Municipalities and Housing, and took effect on Dec. 31.
The decision applies to companies employing five or more workers in engineering positions, based on approved professional definitions and job titles.
It covers 46 engineering professions, including architectural, power generation, industrial, electronics, vehicle, marine and sanitary engineers, among others.
The decision also requires professional accreditation from the Saudi Council of Engineers, with implementation beginning six months from the date of issuance to allow companies time to prepare and ensure compliance.
The second decision raises the Saudization rate to 70% in procurement-related roles in the private sector, effective Nov. 30.
It applies to establishments employing three or more workers in the covered professions, in line with approved definitions and job titles under the Saudi Standard Classification of Occupations.
The decision covers 12 professions, including procurement manager, purchasing officer, contracts manager, warehouse supervisor, logistics services manager, warehouse manager, tenders specialist, procurement specialist, e-commerce specialist, market research specialist, warehouse specialist and private-label sourcing specialist.
The ministry said this decision will enter into force six months from the date of issuance, allowing companies to complete implementation requirements and achieve the targeted localization rate.
It said both decisions are based on extensive studies of labor market needs, the number of jobseekers in relevant specializations, and future requirements of the procurement and engineering sectors.
The measures are expected to improve workplace quality, expand high-quality job opportunities for Saudi men and women, and boost participation in vital sectors, including the non-profit sector.
The ministry said it has published procedural guidelines for both decisions on its website, detailing targeted professions, Saudization calculation mechanisms and required compliance steps.
It urged all covered establishments to comply to avoid regulatory penalties and to use the grace period to prepare and meet the requirements.
Private-sector companies will benefit from incentive packages offered by the human resources ecosystem, including support for recruitment, training, qualification, hiring and job retention.
The incentives also include priority access to localization support programs and initiatives run by the Human Resources Development Fund (Hadaf).