Saudi Arabia Enforces 70% Saudization in Procurement Jobs

Saudi Arabia has begun enforcing a 70% Saudization requirement across 12 procurement-related professions, marking a significant step in the Kingdom’s workforce localization drive under Vision 2030. The decision was issued on 30 November 2025 with a six-month grace period and took effect on 31 May 2026. It raises the earlier 50% rate set for procurement jobs in 2023.

Professions Covered

The Ministry of Human Resources and Social Development (MHRSD) confirmed that the following 12 professions are now subject to the 70% localization requirement. It applies to private-sector establishments employing three or more workers in these professions (job titles as defined in the Saudi Standard Classification of Occupations):

Procurement specialists
Purchasing managers
Warehouse managers
Purchasing representatives
Contract managers
Warehouse keepers
Logistics services managers
Tender specialists
E-commerce specialists
Market research specialists
Warehouse specialists
Private label sourcing specialists

Implementation and Compliance

In an official statement, the ministry said: “The regulatory teams at the Ministry of Human Resources and Social Development have begun following up on the implementation of the decision at the targeted establishments, and verifying their compliance with the specified percentages.”

The move forms part of a broader push to increase localization rates across industries as Saudi Arabia seeks to advance its Vision 2030 objectives of boosting private-sector employment and reducing reliance on expatriate labor.

Impact on Expats

For Indian professionals working in procurement and logistics roles in Saudi Arabia, this means:

Covered companies must have Saudis in at least 70% of these roles (counted across the entity’s employees in the 12 professions), so many will replace or reassign expat staff
The decision does not say what happens to existing expat contracts; renewals and new hiring in these titles are where the impact is most likely
New job opportunities for expats in these categories will be significantly reduced
Companies must either upskill Saudi talent or face penalties for non-compliance

What Employers Need to Do

Private sector establishments must:

Review their workforce composition for the targeted professions
Adjust recruitment strategies to meet the 70% Saudization quota
Register and verify compliance through the Qiwa platform
Face potential fines and restrictions for non-compliance

Broader Context

This decision was announced alongside a 30% Saudization rate for 46 engineering professions (with a SAR 8,000 minimum wage for Saudis to count), and follows earlier localization drives in sectors such as insurance and telecommunications. In August 2026 the Ministry added a further decision: 70% Saudization of project management professions from 14 February 2027.

For Indian job seekers in Saudi Arabia, this underscores the importance of staying updated on Saudization policies and exploring opportunities in sectors with higher expat demand such as healthcare, IT, and specialized technical roles.