Saudi Arabia Introduces Mandatory 70% Localisation in Procurement Roles to Boost National Employment
Riyadh tightens labour market rules, requiring private firms to fill the majority of procurement posts with Saudi nationals under expanded Saudization policy
Saudi Arabia has approved a strengthened localisation policy that mandates private-sector firms fill seventy per cent of designated procurement jobs with Saudi nationals as part of the kingdom’s broader effort to nationalise its workforce and reduce dependency on foreign labour.
The regulation, introduced by the Ministry of Human Resources and Social Development, applies to companies with three or more employees and targets procurement professions that are critical to organisational operations and supply-chain functions.
Under the new framework, firms will be required to meet the seventy per cent localisation quota for roles such as purchasing managers, contract specialists and procurement professionals.
Authorities say this measure will create high-quality employment opportunities for Saudi citizens, integrate skilled national talent more deeply into private-sector functions, and support long-term workforce productivity.
Employers will receive government support in recruitment, onboarding guidance, training programmes and wage subsidies through the Human Resources Development Fund to facilitate compliance and ensure job stability.
The policy forms part of an intensifying Saudization drive designed to align with Vision 2030’s economic diversification goals by expanding national participation across specialised fields.
Alongside procurement, the government has also raised localisation targets and introduced minimum wage requirements in sectors such as engineering to attract and retain Saudi talent in specialised roles.
Regulators have outlined phased implementation and compliance mechanisms to ensure that companies adjust operationally while contributing to the development of a more resilient and competitive domestic labour market.
Market observers said the initiative underscores Saudi Arabia’s commitment to strengthening local human capital and fostering sustainable private-sector growth in critical functions across the economy.
The regulation, introduced by the Ministry of Human Resources and Social Development, applies to companies with three or more employees and targets procurement professions that are critical to organisational operations and supply-chain functions.
Under the new framework, firms will be required to meet the seventy per cent localisation quota for roles such as purchasing managers, contract specialists and procurement professionals.
Authorities say this measure will create high-quality employment opportunities for Saudi citizens, integrate skilled national talent more deeply into private-sector functions, and support long-term workforce productivity.
Employers will receive government support in recruitment, onboarding guidance, training programmes and wage subsidies through the Human Resources Development Fund to facilitate compliance and ensure job stability.
The policy forms part of an intensifying Saudization drive designed to align with Vision 2030’s economic diversification goals by expanding national participation across specialised fields.
Alongside procurement, the government has also raised localisation targets and introduced minimum wage requirements in sectors such as engineering to attract and retain Saudi talent in specialised roles.
Regulators have outlined phased implementation and compliance mechanisms to ensure that companies adjust operationally while contributing to the development of a more resilient and competitive domestic labour market.
Market observers said the initiative underscores Saudi Arabia’s commitment to strengthening local human capital and fostering sustainable private-sector growth in critical functions across the economy.
