The Saudization rate in procurement professions in Saudi Arabia has been raised to 70%
The Ministry of Human Resources and Social Development in Saudi Arabia announced the commencement of the actual implementation of the decision to raise the Saudization rate in procurement professions in the private sector, a strategic step aimed at enhancing the participation of Saudi nationals in the labor market. The decision aims to reach a Saudization rate of 70% in these vital professions by May 31, 2026, thus opening up new career opportunities for Saudi men and women.
A key pillar of the localization strategy and Vision 2030
This decision is an integral part of the Kingdom's ongoing efforts to achieve the goals of Vision 2030, which prioritizes the development of Saudi human capital. Localization programs, known as "Saudization," are a key tool for diversifying the economy and reducing reliance on expatriate labor in specialized sectors. This step follows successful localization initiatives in other sectors such as engineering, accounting, information technology, and marketing, giving the Ministry extensive experience in implementing such decisions and ensuring a smooth transition for companies towards relying on local talent. The focus on procurement and supply chain professions reflects an understanding of their vital role in the success of any business, contributing to operational efficiency and cost reduction.
Targeted professions and precise application mechanism
The decision encompasses a wide range of essential functions within the procurement sector, identifying 12 key professions to be included in its scope. These include: Procurement Manager, Procurement Representative, Contracts Manager, Warehouse Keeper, Logistics Manager, Warehouse Manager, Tenders Specialist, Procurement Specialist, E-commerce Specialist, Market Research Specialist, Warehouse Specialist, and Private Label Supply Specialist. To ensure effective implementation, the decision applies to all private sector establishments employing three or more staff in the targeted professions, according to the titles and definitions adopted in the Saudi Standard Classification of Occupations.
The expected economic impact of increasing the Saudization rate in procurement professions
This decision is expected to have a multifaceted positive impact on the Saudi economy. In the short term, it will create thousands of high-quality job opportunities for qualified Saudi citizens, contributing to lower unemployment rates and increased disposable income for Saudi families. In the long term, the presence of Saudi nationals in procurement departments will enhance the resilience of local supply chains, facilitate dealings with local suppliers, and contribute to redirecting spending domestically, thus supporting the growth of local content and boosting GDP. The Ministry also affirmed that it will closely monitor compliance by its inspection teams and apply the prescribed penalties to violators after the deadline, ensuring the achievement of the desired objectives and creating a stable and productive work environment for all.
