Saudi Arabia has officially implemented a 70% Saudization requirement across 12 procurement-related professions in the private sector. The new regulation came into force on May 31, as part of the Kingdom’s broader strategy to increase local workforce participation and create more opportunities for Saudi nationals.
The Ministry of Human Resources and Social Development announced the decision and confirmed that enforcement measures have already begun. The move aligns with Saudi Arabia’s labor market reforms and supports the goals of Vision 2030.
Rule Applies to Companies Employing Three or More Workers
Under the new regulation, private-sector establishments that employ three or more workers in the targeted professions must comply with the 70% localization requirement.
The ministry stated that the implementation follows the definitions and job classifications outlined in the Unified Saudi Occupational Classification system. Consequently, businesses operating within the affected categories must ensure that the required proportion of employees are Saudi nationals.
Twelve Procurement and Logistics Roles Covered
The localization mandate covers a wide range of procurement, logistics, and supply chain positions.
The targeted professions 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
- Private Label Supply Specialist
These roles play a critical part in procurement operations, inventory management, logistics planning, and supplier coordination across multiple industries.
Inspection Teams Begin Compliance Monitoring
Meanwhile, the ministry has deployed inspection teams to monitor compliance among affected establishments.
Officials said the inspections aim to ensure that companies meet the required Saudization levels and properly localize the designated professions. Furthermore, the ministry warned that businesses failing to comply after the implementation deadline could face legal penalties and regulatory action.
The government has increasingly strengthened enforcement mechanisms in recent years to ensure that localization targets translate into meaningful employment outcomes for Saudi citizens.
Part of Broader Labor Market Reforms
The procurement localization initiative forms part of a wider effort by Saudi Arabia to raise Saudization rates across strategic sectors.
Over the past several years, authorities have introduced localization requirements in industries ranging from retail and finance to engineering and healthcare. As a result, thousands of employment opportunities have opened for Saudi nationals.
The ministry emphasized that the latest decision supports the labor market strategy by encouraging businesses to invest in local talent while reducing dependence on expatriate labor in specialized roles.
Growing Demand for Saudi Talent in Procurement Sector
The government believes the procurement sector offers significant opportunities for qualified Saudi professionals. In addition, rising numbers of graduates and job seekers in procurement, logistics, supply chain management, and related disciplines have increased the availability of local talent.
Officials noted that the decision addresses both current labor market requirements and future workforce needs. Therefore, the initiative is expected to strengthen Saudi participation in specialized professions while supporting long-term employment sustainability.
As Saudi Arabia continues to diversify its economy, workforce localization remains a central pillar of national development. The latest procurement Saudization measure further reinforces the Kingdom’s commitment to building a skilled and competitive local workforce.
