Saudi Arabia implements 70% Saudization in procurement professions

Saudi Arabia has begun enforcing a 70% Saudization requirement across key procurement professions in the private sector, as part of its broader push to expand employment opportunities for Saudi nationals and strengthen workforce localization in strategic industries.

The decision, announced by the Ministry of Human Resources and Social Development, applies to private sector establishments employing three or more workers in the targeted roles, in line with the definitions and job titles outlined under the Unified Saudi Occupational Classification.

Under the new regulation, companies are required to ensure that 70% of employees in designated procurement-related positions are Saudi nationals. The ministry said the move is intended to support national talent development, align labor market demand with qualified job seekers, and address the future workforce requirements of the procurement sector.

The policy covers 12 professions, including procurement manager, procurement representative, contracts manager, warehouse keeper, logistics services manager, warehouse manager, tenders specialist, procurement specialist, e-commerce specialist, market research specialist, warehouse specialist, and private label supply specialist.

“The Ministry of Human Resources and Social Development announced the implementation of a decision to raise the Saudization rate to 70% in procurement professions within the private sector, effective May 31, 2026,” the ministry said in a statement.

The ministry added that the decision applies to establishments employing at least three workers in the targeted professions and is based on approved occupational classifications.

Inspection teams from the ministry have already started monitoring implementation across affected businesses to ensure compliance with the new localization requirements. Authorities warned that legal penalties will be imposed on non-compliant companies after the expiration of the grace period specified under the regulation.

The ministry said the initiative forms part of ongoing labor market reforms aimed at increasing localization rates across multiple sectors and professions. Saudi Arabia has steadily expanded Saudization mandates in recent years as part of broader economic diversification plans under Vision 2030.

Officials said the latest procurement-sector localization drive is also designed to create a more stable and productive work environment for Saudi nationals while encouraging long-term participation in specialized professions tied to supply chains, logistics, and commercial operations.