Saudi Arabia has mandated the localization of 30% of positions across 46 engineering professions within the private sector, a move designed to bolster national employment in key technical fields. The decision, jointly announced by the Ministry of Human Resources and Social Development and the Ministry of Municipalities and Housing on December 31, 2025, impacts private companies with five or more employees in qualifying roles. This initiative reflects the Kingdom’s ongoing commitment to Saudization and diversifying its economy.
The new regulations require private sector establishments to achieve a minimum 30% Saudi national workforce in the specified engineering roles. A minimum monthly salary of SR8,000 (approximately $2,133 USD) has been established for Saudi engineers employed under this directive. Companies have been granted a six-month grace period to adjust their staffing and ensure compliance.
Expanding Opportunities Through Engineering Localization
The push for localization in the engineering sector is part of Saudi Arabia’s broader Vision 2030 plan, which aims to reduce reliance on foreign workers and create more sustainable employment opportunities for Saudi citizens. This strategy is particularly focused on developing a skilled national workforce capable of supporting the Kingdom’s ambitious infrastructure projects and economic diversification goals. The Ministry of Human Resources and Social Development has been steadily increasing Saudization quotas across various sectors in recent years.
Key Engineering Professions Affected
The 46 engineering professions covered by the new rules span a wide range of disciplines, including civil, mechanical, electrical, chemical, and industrial engineering. Specific details regarding the exact professions included in the mandate are available through the Ministry of Municipalities and Housing. This broad scope suggests a significant impact on companies involved in construction, manufacturing, energy, and other infrastructure-related industries.
According to the official announcement, the policy aims to attract and retain qualified Saudi engineers by creating more appealing and long-term career paths. This includes fostering a work environment that values Saudi talent and provides opportunities for professional development. The government hopes this will reduce the outflow of skilled Saudi nationals seeking employment abroad.
However, some industry analysts suggest that the implementation of these quotas could present challenges for smaller companies, particularly those heavily reliant on expatriate engineers. Finding and recruiting qualified Saudi engineers to fill the required positions may take time, potentially leading to project delays or increased labor costs. The Ministry has not yet detailed specific support mechanisms for smaller enterprises.
Ensuring Professional Standards
To maintain quality and competency within the engineering sector, the new regulations stipulate that all Saudi engineers employed under the localization requirements must be accredited by the Saudi Council of Engineers. This accreditation process verifies the engineer’s qualifications, experience, and adherence to professional standards. The Council of Engineers plays a crucial role in regulating the engineering profession in Saudi Arabia.
Additionally, the Ministry of Municipalities and Housing is expected to provide further guidance on compliance procedures and reporting requirements. Companies will likely need to demonstrate their progress towards meeting the 30% localization target through regular reporting to the relevant authorities. The Ministry has indicated that penalties for non-compliance may be imposed.
Meanwhile, the move is expected to stimulate demand for engineering education and training programs within Saudi Arabia. Universities and vocational training institutions may see an increase in enrollment as more Saudi citizens pursue careers in engineering. This could lead to further investment in STEM (Science, Technology, Engineering, and Mathematics) education initiatives.
In contrast to previous Saudization efforts, this directive includes a specific salary floor, aiming to ensure that Saudi engineers are compensated fairly for their skills and experience. This could help to attract and retain top talent within the Kingdom. The SR8,000 minimum salary is intended to create a more competitive and attractive job market for Saudi engineers.
The implementation of this localization policy aligns with broader trends in the Gulf region, where several countries are actively pursuing strategies to increase the participation of their national workforces in the private sector. These efforts are often driven by economic diversification goals and a desire to reduce dependence on foreign labor. The success of these initiatives will depend on factors such as the availability of skilled workers and the willingness of companies to adapt to the new regulations.
Looking ahead, the six-month grace period will be critical for companies to prepare for the new requirements. The Ministry of Human Resources and Social Development is expected to release further details on enforcement mechanisms and provide ongoing support to businesses during the transition. Monitoring the impact of this policy on project timelines, labor costs, and the overall competitiveness of the Saudi engineering sector will be essential in the coming months. The effectiveness of the initiative in achieving its stated goals remains to be seen, and future adjustments to the regulations are possible.
