The Saudi Ministry of Human Resources and Social Development (MHRSD) has mandated the Saudization of the housing supervisor profession within establishments providing shared accommodation. This new regulation, announced in cooperation with the Ministry of Municipalities and Housing, aims to increase employment opportunities for Saudi nationals in the real estate sector. The decision impacts facilities housing 20 or more individuals and sets a minimum monthly salary of SR5,000 for Saudi housing supervisors.
The policy applies to a range of properties including residential complexes, mobile home parks, and apartment buildings across the Kingdom. Establishments are being given a grace period to comply with the new requirements, with penalties for non-compliance outlined in recent amendments to labor regulations. The move is part of a broader national effort to reduce unemployment and diversify the Saudi economy.
Understanding the New Saudization Requirements
The core of the new regulation centers on increasing Saudization rates within the housing sector. According to the MHRSD, the decision applies to all establishments employing 20 or more beneficiaries. This threshold indicates a focus on larger-scale shared living arrangements where supervisory roles are more prevalent.
Salary Standards and Compliance
A key component of the regulation is the SR5,000 minimum monthly salary requirement for Saudi housing supervisors. The ministry stated that any Saudi employee earning below this amount will not be counted towards the establishment’s Saudization quota. Furthermore, employing a supervisor at a lower salary will be considered a violation of the new decision.
This salary floor is intended to ensure that Saudis are offered meaningful employment with competitive wages. It also aims to attract qualified Saudi nationals to these positions. However, some industry observers suggest the SR5,000 figure may present a challenge for smaller establishments.
Scope of Application and Nitaqat System
The MHRSD clarified that the Saudization decision applies specifically to the targeted profession of housing supervisor, regardless of an establishment’s overall classification within the Nitaqat Saudization system. Nitaqat is a points-based system used to categorize companies based on their Saudization levels.
This means that even companies with a high Nitaqat rating will still be required to meet the housing supervisor Saudization quota. The ministry emphasized that Nitaqat classification will not affect the calculation of the localization percentage for this specific role. This demonstrates a targeted approach to increasing Saudi employment in a particular profession.
Support Programs and Enforcement
The MHRSD has outlined a range of support programs to assist the private sector in meeting the new Saudization requirements. These programs encompass recruitment and employment support, training and development initiatives, and measures to enhance job stability for Saudi employees. Priority will be given to utilizing existing localization support programs within the human resources system.
Additionally, the ministry has issued guidelines outlining the health, safety, and technical requirements that establishments must adhere to. These guidelines are intended to ensure a safe and well-maintained living environment for residents. Compliance with these standards is a prerequisite for implementing the Saudization policy.
The MHRSD has warned that legal penalties will be applied to establishments that fail to comply with the localization percentage or attempt to circumvent the rules by assigning localization tasks to non-Saudi workers under different job titles. These penalties are in line with recent amendments to the labor regulations, signaling a firm commitment to enforcement.
Implications for the Real Estate Sector
The implementation of this policy is expected to have a significant impact on the real estate sector, particularly companies managing shared accommodation. Property management companies will need to review their staffing structures and potentially recruit and train Saudi nationals to fill housing supervisor positions. This may involve increased investment in training programs and recruitment efforts.
The move could also lead to increased operational costs for some establishments, particularly those that previously relied on lower-paid foreign workers in supervisory roles. However, the ministry hopes that the long-term benefits of increased Saudi employment and economic diversification will outweigh these costs. The policy also aligns with broader efforts to promote nationalization of the workforce.
The regulation is also likely to influence demand for specific skills and qualifications within the housing supervision profession. Training programs may need to be updated to ensure that Saudi nationals possess the necessary skills to effectively manage shared accommodation facilities. This could create opportunities for educational institutions and vocational training centers.
Looking ahead, the MHRSD is expected to closely monitor compliance with the new regulation and provide ongoing support to the private sector. The grace period for establishments to meet the Saudization quotas is expected to conclude within the coming months, after which enforcement measures will be fully implemented. The effectiveness of the policy in achieving its goals of increased Saudi employment and economic diversification remains to be seen, and will be a key area to watch in the coming year. Further clarification on specific enforcement procedures and the availability of support programs is also anticipated.
