Saudi Arabia is intensifying its workforce localisation agenda, rolling out a series of wide-ranging and sector-specific Saudisation mandates set to impact private sector companies across the Kingdom. Led by the Ministry of Human Resources and Social Development (HRSD), the new rules are a core component of Vision 2030, aimed at increasing Saudi participation in the private sector, enhancing job quality, and ensuring long-term labour market stability.
Over the past two years, the government has introduced phased requirements combining mandatory localisation ratios, minimum wage thresholds, and professional accreditation across numerous industries. The latest announcements extend these measures to marketing, sales, engineering, and procurement, signaling a structural shift for businesses operating in the country.
Marketing and Sales Next in Line
The latest expansion targets marketing and sales professions, with new rules scheduled for implementation in 2026. For private sector establishments with three or more employees, Saudisation rates for both marketing and sales roles will be set at 60 per cent.
The marketing mandate covers a broad spectrum of positions, including marketing and advertising managers, specialists, designers, and public relations professionals. Similarly, the sales requirement applies to roles such as sales managers, retail and wholesale representatives, and IT and communications equipment sales specialists.
Engineering and Technical Roles See Stricter Mandates
Engineering and procurement professions are also facing reinforced localisation requirements. For establishments with five or more workers, Saudisation in engineering roles has been raised to 30 per cent, with a new minimum monthly wage of SAR 8,000. This applies to 46 engineering professions and requires accreditation from the Saudi Council of Engineers.
Procurement professions will see a 70 per cent Saudisation requirement for companies with three or more employees, covering roles like procurement managers and contract managers. Separately, technical engineering roles were assigned a 30 per cent Saudisation target with a minimum salary of SAR 5,000.
Healthcare Localisation Intensifies in Phases
The healthcare sector has been a key focus, with a multi-phase Saudisation plan implemented by the HRSD and the Ministry of Health. The second phase, which rolled out nationwide, set ambitious targets for private sector healthcare providers.
Saudisation rates were raised to 80 per cent for therapeutic nutrition and physiotherapy, 70 per cent for medical laboratories, and 65 per cent for radiology. These roles come with minimum monthly wages of SAR 7,000 for specialists and SAR 5,000 for technicians. Similar phased targets were also set for pharmacy and dentistry professions, with minimum salaries of SAR 7,000 and SAR 9,000, respectively.
Tourism and Aviation Set Compliance Precedents
Beyond profession-based quotas, the tourism sector now faces new operational compliance rules. Licensed tourism facilities must register all employees within HRSD systems and are required to have a Saudi receptionist present during all working hours. Furthermore, outsourcing positions subject to Saudisation to entities outside the Kingdom is prohibited.
This follows the template set by the aviation sector, which began its second phase of Saudisation in March 2024. The rules established localisation rates of 60 per cent for flight attendants and 70 per cent for fixed-wing pilots in private sector establishments with five or more workers.
About Saudi Vision 2030
Saudi Vision 2030 is a strategic framework to reduce Saudi Arabia’s dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation, and tourism. A key pillar of the vision is the development of a thriving private sector and the creation of high-quality employment opportunities for its citizens.
Source: Gulf Business
