Saudi Arabia Increases Localization in Procurement Professions to 70%
The Ministry of Labor of Saudi Arabia is implementing a decision to increase the Saudization rate in twelve procurement professions to 70 percent. This decision will affect the private sector and create new opportunities for local specialists.
What Has Changed in Saudization Policy
The Ministry of Human Resources and Social Development has announced the implementation of a new Saudization policy that applies to private companies and institutions with three or more employees. The decision covers twelve specialized professions in procurement and logistics, including positions such as procurement manager, contract specialist, warehouse manager, e-commerce specialist, and others. The classification of positions corresponds to the unified Saudi professional registry, ensuring transparency and uniformity in the application of requirements.
Covered Professions and Sectors
The new decision affects twelve key positions in the supply chain and procurement management. These include procurement manager, procurement department representative, contract manager, warehouse keeper, logistics manager, tender specialist, procurement specialist, e-commerce specialist, market research specialist, warehouse management specialist, and private brand management specialist. Each of these positions requires a high level of professionalism and specialized knowledge, making the development of local human resources essential.
Control Mechanism and Accountability
The ministry's inspection teams have already begun monitoring compliance with the new Saudization requirements in private sector enterprises. Companies and institutions that do not meet localization requirements within the established deadlines will face legal sanctions. The ministry emphasizes the seriousness of this initiative and its readiness to impose penalties on violators. This approach ensures fair competition and encourages companies to actively seek and hire Saudi specialists.
Impact on the Labor Market and Tourism Development
This policy is part of a broader strategy for developing the labor market in Saudi Arabia, aimed at creating jobs for national personnel and supporting Saudi talents. The increasing demand for qualified Saudi specialists in logistics and supply chain management contributes to the development of tourism infrastructure, including organizing pilgrimage tours and excursions. The development of local human resources in logistics and procurement improves the quality of service for tourists and pilgrims, creating a more stable and efficient service delivery system.
Frequently Asked Questions
When Did the New Saudization Policy Come into Effect?
The decision to increase the Saudization rate to 70 percent in twelve procurement professions came into effect on May 31, 2026. This gave companies time to prepare and adapt their personnel policies to the new requirements.
Which Companies Must Comply with the New Requirements?
The requirements apply to private sector institutions and companies with three or more employees in the covered professions. Government institutions and small businesses with fewer employees are not subject to these Saudization requirements.
What Sanctions Do Companies Face for Non-Compliance?
The ministry imposes legal fines and sanctions on companies that do not meet localization requirements after the established deadline. Inspection teams actively monitor compliance, ensuring the effectiveness of the new policy.
