Saudi Arabia: Increased Engineering-Sector Saudization Requirements from July 2024

Effective July 21, 2024, Saudization targets for private-sector businesses employing five or more accredited engineers will increase to 25 percent, up from the current 20 percent. This Saudization target applies to all engineering roles, as classified by the Ministry of Human Resources and Social Development (MHRSD). There are limited exceptions. First, if an individual is not accredited, despite being an engineer by trade, and is not working in an engineering role, then they will not count towards a business’s Saudization percentages. Second, accredited Saudi engineers earning less than SAR 7,000 per month (approximately USD 1,850) do not count towards a business’s Saudization percentage. Affected employers should review their workforce composition in anticipation of this policy change and may need to restructure their talent management strategy in order to ensure compliance within the new Saudization requirements. Noncompliant employers will face penalties, including suspension of the MHRSD’s services (such as employee transfer services and work permit renewals).