Key Points
- New Saudization rates for 269 professions across multiple sectors, effective January 22, 2025.
- Pharmacy: 35% in community pharmacies, 65% in hospital pharmacies, and 55% in other pharmacy sectors, effective July 23, 2025.
- Dentistry: 45% Saudization rate starting July 23, 2025, increasing to 55% in 2026.
- Accounting: Gradual increase from 40% to 70% over five years, beginning October 22, 2025.
- Technical Engineering: 30% Saudization rate effective July 23, 2025, for firms with five or more workers.
- New guidelines issued, with penalties for non-compliance under Saudi Vision 2030.
Overview
Saudi Arabia has introduced new Saudization (Nitaqat) requirements covering 269 professions across various industries, marking a significant shift in labor market regulations. The updated Saudization percentages, published by the Ministry of Human Resources and Social Development (HRSD), aim to increase national employment opportunities in key sectors while ensuring compliance with Saudi Vision 2030 goals.
The new requirements impact pharmacy, dentistry, accounting, and engineering fields. Employers in these industries must meet specific Saudization thresholds to remain compliant.
Breakdown of Saudization Requirements by Sector:
- Pharmacy:
- 35% Saudization in community pharmacies
- 65% in hospital pharmacies
- 55% in other pharmacy sectors
- Applies to establishments with five or more pharmacy-related workers
- Dentistry:
- 45% Saudization rate effective July 23, 2025
- Increase to 55% by 2026
- Applies to establishments with three or more dentists
- The minimum salary for Saudis in the dentistry quota is SAR 9,000
- Accounting:
- Saudization will increase gradually from 40% to 70% over the next five years, starting October 22, 2025
- Applies to companies with five or more accountants
- Technical Engineering:
- Saudization rate is set at 30%, effective July 23, 2025
- Applies to private sector firms with five or more technical engineers
The HRSD has also provided guidelines on compliance, enforcement measures, and penalties for non-compliance. These changes are part of Saudi Arabia’s ongoing labor market reform to enhance local workforce participation and reduce reliance on foreign labor.
Looking Ahead
As Saudization targets increase, employers in affected industries must review their hiring strategies, ensure compliance with quotas, and implement workforce localization plans. Businesses that fail to meet the new Saudization thresholds could face penalties, restrictions on hiring foreign workers, or other regulatory actions.
Companies should also prepare for a phased transition by hiring Saudi professionals, adjusting salary structures, and leveraging government support programs to meet workforce localization targets.
With Saudi Vision 2030 driving labor market transformation, further adjustments to Saudization policies are expected in the coming years. Employers should stay informed on HRSD updates and proactively adapt their recruitment and compliance strategies to avoid disruptions.
