Saudi Arabia continues to reshape its labour market , and the latest update will directly affect companies operating in engineering and procurement functions.
The Ministry of Human Resources and Social Development has announced higher Saudization targets for both professions, reinforcing the Kingdom’s long-term goal of increasing Saudi participation in skilled and strategic roles across the private sector.
With over 63% of Saudi Arabia’s population under the age of 35 and a growing pool of locally trained professionals, these changes signal a clear shift: localisation is no longer a future objective, it is an operational requirement.
Higher Saudization Targets for Engineering Roles
Under the new decision, companies employing engineers will need to meet stronger localisation and salary standards.
What’s changing for engineering roles?
Saudization rate increased to 30%
Minimum monthly salary set at SAR 8,000
Applies to companies with five or more engineers
Covers 46 recognised engineering professions
Saudi Council of Engineers accreditation is mandatory
Implementation date: 31 December 2025
A six-month grace period has been provided for preparation
Why this matters
Engineering roles sit at the heart of Saudi Arabia’s Vision 2030 infrastructure, energy, construction, and industrial projects. With billions of riyals invested annually in mega-projects, the demand for qualified Saudi engineers continues to rise — and employers are expected to align their workforce strategies accordingly.
Procurement Roles Face a 70% Saudization Requirement
A second decision focuses on procurement and supply-chain functions, increasing localisation expectations significantly.
Key updates for procurement professions
Saudization rate increased to 70%
Applies to establishments with three or more employees in covered roles
Effective from 30 November 2025
Includes a six-month preparation window
Roles affected include:
Procurement Manager and Procurement Specialist
Contracts Manager
Logistics Services Manager
Warehouse Manager and Warehouse Specialist
Tenders Specialist
E-commerce and Market Research Specialists
Private Label Supply Specialists
Procurement functions play a critical role in cost control, vendor management, and operational continuity — making them a key focus area for workforce localisation.
Why Saudi Arabia Is Tightening Saudization Rules
According to government labour data, Saudi national participation in the private sector has increased by more than 30% over the past five years, driven by targeted Saudization policies and employer incentives.
These new decisions are based on:
Labour market demand analysis
Availability of qualified Saudi professionals
Long-term workforce sustainability goals
For employers, this means greater accountability, but also greater access to local talent when planning correctly.
What Employers Should Be Doing Now
Although implementation is set for late 2025, companies should not wait.
The Ministry has published a procedural guide detailing:
Covered job titles
Saudization calculation methods
Compliance steps and timelines
During the grace period, employers should:
Review current job titles and classifications
Assess Saudization exposure in engineering and procurement teams
Align salary structures with minimum thresholds
Plan Saudi hiring, training, and succession strategies
Delaying preparation increases the risk of penalties, system restrictions, and last-minute hiring pressure.
Incentives Available for Compliant Employers
To support compliance, eligible employers can benefit from government programmes that include:
Recruitment and onboarding support
Training and upskilling initiatives
Employment stability incentives
Priority access to programmes through the Human Resources Development Fund (Hadaf)
These incentives are designed to reduce the cost impact of localisation when planning is done early.
How We Support Employers
At Northman and Sterling, we support employers in navigating Saudization changes with clarity and confidence. We begin by assessing the impact of new localisation requirements on your existing workforce, identifying risk areas across engineering and procurement roles. Our team reviews job classifications, salary structures, and compliance exposure to ensure alignment with Saudi labour regulations.
We then help you plan a practical localisation strategy that balances regulatory obligations with operational continuity, including guidance on Saudi hiring, role alignment, and workforce structuring. Throughout the process, we provide end-to-end advisory support, coordinating with HR and leadership teams to ensure compliance is achieved efficiently, cost-effectively, and without disruption to day-to-day operations.
