Localization of procurement jobs in Saudi Arabia to 70%: Everything you need to know
The Ministry of Human Resources and Social Development in Saudi Arabia announced the implementation of its strategic decision to raise the Saudization rate for procurement jobs in private sector establishments to 70%. This decision will take effect on May 31, 2026, and targets establishments with three or more employees in the professions covered by the decision. This step aims to enhance the participation of Saudi nationals in the labor market and achieve the goals of the Kingdom's Vision 2030.
This decision comes as part of a broader series of initiatives adopted by the Kingdom within its ambitious Vision 2030, which prioritizes the development of Saudi human capital. Historically, localization policies, known as "Saudization," have undergone several phases, moving from a general focus to precisely targeting specific sectors and professions to ensure the provision of quality and sustainable job opportunities for Saudi citizens. The procurement and logistics sector is a vital artery of the economy, and its localization directly contributes to strengthening the security of national supply chains and enhancing overall economic performance.
Strategic objectives of the decision to localize procurement jobs
The impact of this decision extends beyond simply replacing expatriate workers with Saudi nationals; it encompasses deeper strategic dimensions. By increasing the Saudization rate in this sector, the Kingdom aims to build a base of Saudi experts and specialists in vital fields such as contract management, market analysis, and e-commerce. This will enhance the competitiveness of Saudi companies both domestically and internationally, ensure the sustainable growth of the private sector by relying on qualified and trained national talent, reduce dependence on foreign expertise, and support the knowledge economy.
Targeted professions and strict implementation mechanisms
The decision encompasses 12 key professions within the procurement sector, carefully selected based on their importance in the labor market. These include managerial and specialized positions such as: Procurement Manager, Procurement Representative, Contracts Manager, Warehouse Supervisor, Logistics Manager, Warehouse Manager, Tenders Specialist, Procurement Specialist, E-commerce Specialist, Market Research Specialist, Warehouse Specialist, and Private Label Supply Specialist. To ensure full compliance, the Ministry's oversight teams have begun monitoring the implementation of the decision in the targeted establishments. The Ministry has emphasized that penalties will be applied to non-compliant establishments after the specified deadline, with the aim of creating a stimulating and stable work environment for Saudi nationals.
