Saudi Arabia rolls out new saudization rules with SAR 8,000 wage for engineers

Saudi Arabia is stepping up efforts to increase local workforce participation in specialized jobs. The Ministry of Human Resources and Social Development has unveiled two major decisions that set higher saudization targets and introduce minimum wage standards, aiming to create better opportunities for citizens in vital sectors.

Saudization, or “Nitaqat,” is a national policy designed to increase the employment of Saudi citizens across public and private sectors. Its goal is to reduce reliance on expatriate labor and ensure that Saudi nationals are well-represented in key professions. The policy sets specific targets for businesses, requiring them to employ a certain percentage of Saudi workers depending on industry and role. Compliance is monitored by the Ministry of Human Resources and Social Development, with guidance provided on calculation methods, required documentation, and enforcement procedures.

Under the first decision, Saudization in engineering professions will rise to 30 percent. This change targets companies with five or more employees working in 46 specialized roles, including:

A new minimum wage of SAR 8,000 will apply to Saudi engineers in both private and non-profit sectors. To qualify, professionals must hold accreditation from the Saudi Council of Engineers.The decision took effect on December 31, 2025, but companies will have six months to prepare before full enforcement.

This preparation period allows businesses to adjust hiring practices, ensure proper accreditation, and align with Saudization requirements.The ministry has highlighted that the move will not only increase Saudi participation but also improve the work environment by fostering skilled, certified professionals in the sector.

The second decision focuses on procurement roles in the private sector, setting a saudization target of 70 percent. This applies to establishments employing three or more workers in 12 key procurement positions, such as:

This regulation comes into effect on November 30, 2025, with a six-month grace period to allow companies time to meet the new requirements.The ministry emphasized that increasing Saudi participation in procurement will strengthen national engagement in critical business operations, expand job opportunities for citizens, and enhance overall productivity within the sector.

To guide businesses through the transition, the Ministry of Human Resources and Social Development has published a procedural guide on its website. The guide provides:

Companies are urged to follow the guidelines carefully. Failure to meet the new targets may result in penalties, reinforcing the government’s commitment to building a more locally-driven workforce.The ministry described these measures as a strategic step toward boosting employment opportunities for Saudis, improving workplace standards, and strengthening national participation in vital sectors.