Saudi Arabia: Saudization Requirements Announced for Several Activities and Professions

The Ministry of Human Resources and Social Development issued multiple decisions which will implement Saudization ratios for select businesses over the next two years. Private sector companies with three or more employees working in project management professions will be required to reach a 35% Saudization ratio by December 24, 2023 and 40% by December 12, 2024 and must also pay their workers in these professions a minimum monthly salary of SAR 6,000. Private sector companies with three or more employees working in certain procurement professions will have to increase their Saudization ratios to 50% by December 24, 2023. Private sector companies with five or more employees working in certain sales professions will have to increase their Saudization ratios to 15% by December 24, 2023. Private sector companies performing postal and freight activities will have to increase their Saudization ratio to 100% of workers by October 26, 2023; however, the following will be excluded from this requirement: professions in loading and unloading, packaging and wrapping, shelving, product sorting, wheelbarrowing, storing, and facility cleaning, provided that the percentage of these professions does not exceed 20% of total workers in one shift at a time. Further, women’s tailors and women’s beauty salons which employ 10 or more non-Saudi workers must have a minimum of one female Saudi employee by December 24, 2023 with the exception of cleaning, nail care, body care, transportation and delivery companies. Affected employers should review the new Saudization requirements and comply with applicable timelines. Non-compliant employers will be subject to penalties, including the suspension of immigration and employment services.