Saudi Arabia has announced a major update to its workforce nationalisation programme, raising Saudisation targets in engineering and procurement professions as part of its long-term strategy to strengthen local employment and reduce reliance on expatriate labour. The move, unveiled by the Ministry of Human Resources and Social Development, represents a significant policy shift aimed at expanding high-quality job opportunities for Saudi nationals while supporting the Kingdom’s broader economic transformation agenda under Saudi Vision 2030.
Under the revised rules, private-sector employers will be required to ensure 30 per cent Saudi representation in engineering roles and 70 per cent in procurement roles, with implementation set to begin in late 2025. Companies will receive a six-month grace period to prepare for compliance. The policy is expected to reshape hiring practices across multiple industries, influence salary structures, and accelerate skills development among Saudi professionals.
This article explains the new Saudisation requirements in detail, identifies the professions affected, outlines how businesses can comply, and examines the expected impact on Saudi Arabia’s labour market.
Understanding Saudisation in Saudi Arabia
Saudisation is a national policy designed to increase the employment of Saudi citizens in the private sector. For years, the Kingdom has relied heavily on expatriate labour, particularly in technical, engineering and operational roles. However, as part of its economic diversification strategy, the government has steadily expanded Saudisation targets across industries.
Today, Saudisation focuses not only on increasing numbers but also on improving job quality, wages and career sustainability. The latest update reflects a shift toward high-value professional roles that play a critical role in economic growth and operational decision-making.
What Are the New Saudisation Requirements?
The updated Saudisation framework focuses on two strategic professional categories: engineering and procurement. These sectors influence infrastructure development, industrial growth and supply chain efficiency across the Kingdom.
Engineering Professions: 30% Saudisation Target
The Saudisation requirement for engineering roles in the private and non-profit sectors has been raised to 30 per cent. This marks a notable increase compared to previous thresholds and signals the government’s intent to localise technical expertise.
Key features of the engineering policy include:
-
A minimum monthly salary of SR 8,000 for Saudi nationals
-
Applicability to companies with five or more employees
-
Coverage of 46 designated engineering professions
-
A six-month compliance window from the policy’s effective date
Engineering roles covered under the policy include architects, industrial engineers, mechanical engineers, electrical engineers, electronics engineers and power generation engineers.
Importantly, Saudi nationals employed in these positions must hold professional accreditation from the Saudi Council of Engineers, ensuring consistent technical standards across the workforce.
Procurement Professions: 70% Saudisation Target
Procurement roles now face a significantly higher Saudisation requirement of 70 per cent. This reflects the strategic importance of procurement and supply chain management in business operations.
The policy applies to private-sector establishments with three or more employees in procurement-related roles. Covered positions include:
-
Procurement and purchasing managers
-
Contracts managers
-
Purchasing specialists
-
Warehouse managers and supervisors
-
Supply chain and logistics professionals
Companies must meet the new quota within the same six-month grace period.
By prioritising procurement, Saudi Arabia aims to increase national participation in areas that directly influence corporate spending, vendor relationships and operational efficiency.
Why Saudi Arabia Is Raising Saudisation Targets
The updated Saudisation rules align closely with the Kingdom’s long-term labour and economic goals. Several factors explain why the government has chosen to raise targets in these specific sectors.
Expanding Access to High-Value Jobs
Engineering and procurement roles offer stable incomes, career progression and strategic influence. By increasing Saudisation in these professions, the government aims to ensure that Saudi nationals gain access to roles that shape economic development rather than remaining concentrated in lower-value positions.
Reducing Dependence on Expatriate Labour
While expatriate expertise remains important, long-term reliance creates vulnerabilities. Therefore, localising key professional roles helps build domestic capacity and knowledge transfer within the Saudi workforce.
Improving Job Quality and Wages
The introduction of minimum salary thresholds ensures that Saudisation does not result in low-paid or symbolic roles. Instead, it promotes meaningful employment with competitive compensation.
Supporting Vision 2030 Goals
Under Vision 2030, Saudi Arabia seeks to diversify its economy beyond oil, strengthen the private sector and empower its citizens. Raising Saudisation targets directly supports these objectives by aligning workforce policy with economic reform.
Professions Affected by the New Rules
Engineering Roles Covered
The policy covers a wide range of technical and professional engineering roles, including:
-
Architects
-
Industrial engineers
-
Mechanical engineers
-
Electrical engineers
-
Electronics engineers
-
Power generation engineers
-
Other specialised engineering disciplines
Requiring professional accreditation ensures that Saudi engineers meet recognised standards and remain competitive within global markets.
Procurement and Supply Chain Roles
Procurement roles covered under the policy include:
-
Procurement managers
-
Contracts and tender managers
-
Purchasing officers
-
Warehouse supervisors
-
Logistics and supply chain specialists
These positions play a critical role in cost control, operational planning and supplier relationships. As a result, the government views their localisation as essential to strengthening business governance.
How Businesses Can Comply With the New Saudisation Targets
Employers affected by the policy have a six-month preparation period before enforcement begins. During this time, companies should take proactive steps to ensure compliance.
Key actions include:
-
Reviewing workforce composition and identifying gaps
-
Recruiting qualified Saudi nationals
-
Offering salaries that meet or exceed minimum thresholds
-
Supporting professional accreditation and training
-
Aligning HR strategies with Saudisation requirements
Meanwhile, companies can leverage government-supported recruitment programmes, training initiatives and employment platforms designed to connect employers with Saudi talent.
Non-compliance may affect business operations. In past Saudisation phases, violations have led to restrictions on work visas, licence renewals and access to government services.
Expected Impact on the Saudi Labour Market
The revised Saudisation targets are expected to produce several long-term effects across the Kingdom’s employment landscape.
Increased Employment for Saudi Nationals
Higher quotas will open more opportunities for Saudi professionals in sectors traditionally dominated by expatriates.
Stronger Skills Development
Mandatory accreditation and technical standards will encourage continuous learning, certification and professional growth among Saudi workers.
Rising Wage Levels
Minimum salary requirements may increase overall compensation levels, particularly in engineering roles, making private-sector employment more attractive to nationals.
Greater Workforce Sustainability
By building local expertise, Saudi Arabia strengthens its ability to support large-scale infrastructure projects, industrial expansion and supply chain resilience.
Challenges and Business Considerations
Despite its benefits, the policy also presents challenges for employers.
Talent Availability
Some companies may struggle to find sufficient numbers of qualified Saudi engineers and procurement professionals, particularly in specialised fields.
Increased Competition for Skilled Nationals
Higher demand for certified Saudi professionals could drive wage competition across industries.
Workforce Planning Adjustments
Businesses may need to revise hiring strategies, training programmes and long-term workforce planning models.
However, the phased implementation and grace period aim to minimise disruption and allow employers time to adapt.
Conclusion
Saudi Arabia’s decision to raise Saudisation targets in engineering and procurement professions marks a significant step in reshaping the Kingdom’s private-sector workforce. By setting higher quotas, introducing minimum salary thresholds and enforcing professional accreditation, the government is reinforcing its commitment to meaningful employment, skills development and sustainable economic growth.
As businesses adjust to the new requirements and invest in Saudi talent, these measures are expected to play a crucial role in advancing Vision 2030 goals. Over time, the policy is likely to strengthen workforce resilience, improve job quality and enhance national participation in critical sectors of the Saudi economy.
