Saudi Arabia: New Saudization Requirements Forthcoming in Certain Sectors
October 27, 2021
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At a Glance
- The Ministry of Human Resources and Social Development has issued several decisions relating to Saudization and other employment requirements for select professions in marketing, healthcare, medical appliances, dentistry, and pharmaceutical sectors.
- The Ministry has also restricted the employment of foreign nationals in secretarial, translation, storekeeping, and data entry jobs.
- These new regulations will become effective in April and May of 2022.
- Non-compliant employers will be subject to penalties, including the suspension of immigration and employment services such as the issuance of new work permits and employment transfer.
The situation
The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has issued several decisions relating to Saudization and other employment requirements for select professions in marketing, healthcare, medical appliances, dentistry, and pharmaceutical sectors.
A closer look
The below table illustrates new Saudization and employment requirements for select positions in the economic sectors identified by the MHRSD:
| Targeted Sector | Total Saudization Ratio of the Sector | Details | Effective Date |
| Marketing | 30% |
Applicable to all companies with a minimum headcount of five employees in marketing professions, including marketing directors and specialists, public relations managers, sales, and marketing experts. Minimum monthly salary for a Saudi national employed in any of the targeted professions will be SAR 5,500. |
May 8, 2022 |
| Dentistry | n/a |
Applicable to all companies with a minimum headcount of three employees in dentistry professions (professional accreditation with the Saudi Commission for Health Specialties is required). Minimum monthly salary for a Saudi national employed in one of the targeted professions will be SAR 7,000. |
April 11, 2022 |
| Pharmaceuticals | n/a |
Applicable to all companies with a minimum headcount of five employees in pharmaceutical professions (professional accreditation with the Saudi Commission for Health Specialties is required). Minimum monthly salary for a Saudi national employed in one of the targeted professions will be SAR 7,000 for specialists and SAR 5,000 for technicians. |
April 11, 2022 |
| Healthcare | 60% |
Applicable to all companies with employees in medical laboratories, those working in radiology, physiotherapy, and therapeutic nutrition professions. Minimum monthly salary for a Saudi national employed in any of the targeted professions will be SAR 7,000 for specialists and SAR 5,000 for technicians. |
April 11, 2022 |
| Medical Appliances and Equipment | 30-40% in the first phase; and 50-80% in the second phase. It is not clear when the phases begin or end. |
Applicable to all companies with employees working in professions related to sales, promotion, and introduction of medical appliances, as well as to those employed in engineering and technical professions in the medical appliances sector. Minimum monthly salary for a Saudi national employed in any of the targeted professions will be SAR 7,000 for engineers, specialists and holders of bachelor’s degrees, and SAR 5,000 for technicians and other diploma holders. |
April 11, 2022 |
The current exchange rate is SAR 1 = USD .27
Restriction of employment of foreign nationals
In addition to the above rules, the MHRSD will also restrict access to secretarial, translation, storekeeping, and data entry jobs to Saudi nationals, effective May 8, 2022. The minimum salary for a Saudi national employed as a translator or a storekeeper will be SAR 5,000 per month.
Impact
Affected employers should review the procedural details related to the application of the relevant Saudization requirements and comply with them within the set deadlines. Non-compliant employers will be subject to penalties, including the suspension of immigration and employment services such as the issuance of new work permits and employment transfer.
Background
The new Saudization requirements aim to increase the participation of local talent in the private sector, and by setting minimum salary requirements for Saudi workers, the MHRSD is further regulating the employment conditions in the affected sectors.
Looking ahead
The MHRSD anticipates that these new measures will contribute to the employment of over 40,000 Saudi nationals in the coming years. It is expected that the Ministry will provide support and incentives to assist private sector employers to recruit local talent.
The government is expected to release more information about the new rules in the coming weeks and months. We will publish an alert when relevant details become available.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
