MHRSD Announces Saudization Drive to maximize Job Opportunities for Saudis

The Ministry of Human Resources and Social Development (MHRSD) is taking steps to expand the Saudization drive, with the goal of providing stimulating and productive job opportunities for Saudis.

This includes professions and activities such as project management, procurement and sales, shipping activities, freight brokerage, decor, and women’s tailoring. In partnership with other ministries and supervisory authorities, the ministry is looking to increase Saudi participation in the labor market.

The Saudization of project management professions, such as project manager and project management specialist, is being implemented in two phases in cooperation with the Ministry of Municipal, Rural Affairs and Housing. The first phase targets 35% and the second 40% of the total number of workers in these professions in firms with three or more workers, with a minimum wage of SR6000.

Saudization has been implemented in two procurement professions and fifteen sales professions, requiring establishments with three or more workers in procurement jobs and five or more workers in sales jobs to meet a certain percentage of Saudi employees.

These professions include purchasing manager, purchasing representative, food manager, private trademark supply specialist, tendering specialist, sales manager, internal sales and customer services manager, patent specialist, marketing sales expert, printer and copying equipment salesman, computer salesperson, retail sales manager, wholesale sales manager, commercial specialist, and sales specialist.

The Ministry of Transport and Logistics and the General Transport Authority have implemented Saudization in 14 activities related to freight services and freight brokers. The company has taken the initiative to ensure that all administrative positions in outlets providing decoration and sewing services for women are filled by Saudi citizens. Additionally, any outlet with 10 or more female workers in technical professions must also appoint one Saudi female in a technical role.

The Ministry has also declared the beginning of the second phase of Saudization of postal activities and parcel services, as well as the second phase of localization of medical appliances sector, both set to take effect from April 1.

This follows the end of a grace period given for these professions and activities to be localized. The localization of mail and parcel transportation will limit CEOs to Saudis, and 50 percent of first-level positions in all establishments licensed by the supervisory authority for mail and parcel transportation will be filled by Saudis. The Ministry of Transport and Logistics and the Public Transport Authority are working together to implement this localization.

The second stage in the localization of the medical appliances sector involves Saudization of sales, advertising and promotion of medical appliances and supplies to 80 percent, and localization of engineering and technical professions for medical appliances to 50 percent. This applies to all businesses engaged in medical appliances and supplies activities and is being implemented in collaboration with the Ministry of Health.

The ministry has confirmed it will provide a package of incentives to help private sector establishments hire Saudis. This package includes access to all Saudization support programs available and support and employment programs through the Human Resources Development Fund (HADAF).

Furthermore, the ministry has issued procedural guides to explain the details of the localization of professions and activities, as well as the mechanisms for their implementation. To stay in compliance, private establishments must adhere to these decisions or risk facing statutory penalties.