Saudi Arabia Announces New 35% Saudization Mandate for Engineering Professions

New Localization Targets for Engineering

The Saudi Ministry of Human Resources and Social Development (MHRSD) has officially announced a significant update to its nationalization strategy, commonly known as Saudization. Starting in May 2027, private sector establishments employing professionals in 94 specific technical engineering roles will be required to ensure that at least 35% of their workforce in these positions consists of Saudi nationals.

Scope and Implementation

This policy is part of a broader effort by the Saudi government to empower the local workforce and reduce reliance on expatriate labor in high-skill sectors. The mandate applies to a wide range of engineering disciplines, ensuring that local talent is integrated into critical infrastructure and development projects. Key aspects of the policy include:

• A minimum localization threshold of 35% for targeted engineering roles.
• Coverage of 94 distinct technical engineering professions.
• A transition period allowing companies until May 2027 to adjust their hiring practices and training programs.

Alignment with Vision 2030

The introduction of this policy aligns with the objectives of Saudi Vision 2030, the Kingdom's strategic framework designed to diversify the economy and create sustainable employment opportunities for its citizens. By focusing on technical and engineering fields, the government aims to build a knowledge-based economy driven by local expertise. Officials have emphasized that this move is intended to enhance the quality of the labor market and provide Saudi engineers with the necessary experience to lead major national projects.

Compliance and Future Outlook

The Ministry of Human Resources and Social Development has indicated that it will monitor compliance closely as the deadline approaches. Establishments are encouraged to invest in training and development programs to bridge any skills gaps and meet the new requirements. As noted by industry observers, this policy represents a 'strategic shift toward long-term human capital development' within the Kingdom's private sector.