Saudi Arabia Elevates Saudization Targets for Engineering and Procurement Sectors

New Saudization Mandates Set for Key Private Sectors

The Kingdom of Saudi Arabia has significantly increased Saudization requirements for private-sector engineering and procurement professions, a move spearheaded by the Ministry of Human Resources and Social Development (MHRSD). These updated mandates aim to bolster national participation in strategic roles and reduce reliance on foreign labor, aligning with the broader objectives of Saudi Vision 2030.

Engineering Professions See Increased Localization

For engineering roles, private-sector businesses employing five or more accredited engineers across 46 specified professions are now required to achieve a 30% Saudization rate. This marks an increase from the previous 25% target. To be counted towards this quota, Saudi engineers must receive a minimum monthly salary of SAR 8,000. The decision, made in partnership with the Ministry of Municipalities and Housing, covers a wide array of engineering disciplines, including:

• Architectural engineering
• Industrial engineering
• Electronics engineering
• Power generation engineering
• Marine engineering
• Vehicle engineering
• Sanitary engineering

Professionals in these roles must also hold accreditation from the Saudi Council of Engineers. The new regulations for engineering professions are effective from December 31, 2025, with a six-month grace period provided to ensure companies can achieve compliance by mid-2026.

Procurement Roles Face Higher Nationalization Targets

In the procurement sector, the Saudization requirement has been substantially raised to 70% for private-sector businesses. This applies to establishments employing three or more workers in 12 designated procurement professions. Key roles affected by this change include:

• Procurement manager
• Contracts manager
• Warehouse keeper
• Logistics services manager
• Tenders specialist
• E-commerce specialist
• Market research specialist

This decision became effective on November 30, 2025, also with a six-month grace period, pushing the compliance deadline to mid-2026.

Strategic Goals and Implementation Support

These updated Saudization measures are part of the Kingdom's ongoing Nitaqat program, designed to enhance the quality of the work environment and expand employment opportunities for Saudi nationals in specialized fields. The MHRSD has affirmed its commitment to supporting private sector establishments through various incentives and programs offered by the Human Resources Development Fund (Hadaf). Procedural guides detailing the new requirements, calculation mechanisms, and compliance steps have been published by the Ministry to assist businesses in adhering to the regulations and avoiding statutory penalties.