Saudi Arabia Unveils New Saudization Rules, Sets Minimum SAR 8,000 Wage for Engineers
Saudi Arabia has introduced expanded Saudization (Nitaqat) regulations, targeting key technical sectors to boost employment for Saudi nationals. Announced by the Ministry of Human Resources and Social Development, the new rules mandate a minimum monthly wage of SAR 8,000 (approx. USD 2,130) for Saudi engineers and set stringent localization quotas for engineering and procurement roles.
Key Provisions for the Engineering Sector
The policy, issued on December 31, 2025, requires private and non-profit sector companies to ensure that at least 30% of their engineering workforce are Saudi nationals. This applies to 46 designated engineering professions, including architects and industrial engineers, in firms with five or more employees in these roles. To qualify, engineers must hold accreditation from the Saudi Council of Engineers. A six-month grace period has been provided before full enforcement begins.
Expanded Mandate for Procurement Jobs
In addition to engineering, the reforms extend Saudization to procurement functions, requiring 70% of roles—such as procurement managers and warehouse supervisors—to be filled by Saudi nationals. This measure also includes an adjustment period for businesses to align their hiring practices.
Policy Rationale and Objectives
These changes are part of Saudi Arabia’s broader Vision 2030 strategy to reduce dependency on foreign labor and create a competitive, skilled national workforce. By setting a minimum wage floor and specific quotas, the government aims to make private-sector careers more attractive to Saudi citizens, ensuring fair compensation and professional development in high-skill fields.
Compliance and Implementation
The Ministry has issued detailed guidelines to help companies understand and meet the new targets. Businesses that fail to comply after the grace period may face penalties or restrictions. The reforms underscore Saudi Arabia's commitment to workforce nationalization and economic diversification.
Also Read: India Issues Travel Alert: Prior Clearance Now Mandatory for Some Medicines to Saudi Arabia
Future Outlook
Analysts suggest these rules will significantly reshape Saudi Arabia’s labor market, fostering a stronger local talent pipeline in engineering and procurement. Companies will need to adapt their recruitment strategies, balancing Saudization goals with operational needs as the Kingdom advances toward a more inclusive and locally driven economy.
