Khaberni - The Ministry of Human Resources and Social Development in Saudi Arabia announced the issuance of two decisions to increase the localization rates in a number of quality professions, within the framework of the ministry's efforts aimed at enhancing the participation of national competencies in the labor market, and providing stimulating and productive job opportunities for citizens in various regions of the kingdom.
The first decision stipulates raising the localization percentage in engineering professions to 30% with raising the minimum wage to 8000 Riyals in the private and non-profit sectors, in partnership with the Ministry of Municipal and Rural Affairs and Housing, starting from December 31, 2025, for establishments that employ (5) workers or more in engineering professions, according to the approved occupational definitions and titles, and includes the decision (46) engineering professions, including: (architect, power generation engineer, industrial engineer, electronics engineer, vehicle engineer, marine engineer, sanitary engineer, and others), in addition to professional accreditation from the Saudi Engineering Council, with the implementation of the decision starting six months from the issuance date; to ensure the readiness of the targeted establishments and ensure compliance.
The second decision stipulates raising the localization percentage to 70% in procurement professions in the private sector starting from November 30, 2025, for establishments employing (3) workers or more from the professions included according to the definitions and titles approved in the unified Saudi classification of professions, including 12 professions, among the most prominent are: (purchasing manager, purchasing representative, contracts manager, warehouse keeper, logistics services manager, warehouse manager, tenders specialist, purchasing specialist, e-commerce specialist, market research specialist, warehouses specialist, and private brands supply specialist), with the decision coming into effect six months after the date of issuance; to enable the targeted establishments to complete the application requirements and achieve the targeted ratio.
The ministry confirmed that the two decisions are based on intensive studies of labor market needs, in line with the numbers of job seekers in the related specialties, and future requirements of the procurement and engineering sectors, indicating that the implementation of the decisions will improve the quality of the work environment and increase quality job opportunities for Saudi men and women, and enhance their participation in vital sectors including the non-profit sector.
The ministry clarified that it has published the procedural guide related to the decisions on its website, which includes details of the targeted professions, localization rate calculation mechanisms, and required compliance steps, calling on all covered establishments to comply with the implementation to avoid systematic penalties, and to benefit from the specified grace period for preparation and meeting requirements.
The ministry indicated that private sector establishments will benefit from a package of incentives offered by the Human Resources and Social Development ecosystem, including support for recruitment operations, training and qualification, employment, job stability, and priority access to localization support programs and Human Resources Development Fund programs "Hadaf".
