Saudization of procurement jobs: Implementation of the decision begins at a rate of 70% in the Kingdom

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The Ministry of Human Resources and Social Development in the Kingdom of Saudi Arabia announced the commencement of practical steps to implement the decision to Saudize procurement jobs in private sector establishments, aiming for a 70% Saudization rate, effective May 31, 2026. This strategic decision comes as part of the Kingdom's ongoing efforts to empower national talent and provide an attractive and stable work environment that contributes to driving economic development in line with the objectives of Saudi Vision 2030.

Professions targeted in the decision to localize procurement jobs

The new decision includes establishments with three or more employees in the targeted professions, based on the titles and definitions adopted in the Saudi Standard Classification of Occupations. The list includes 12 vital professions in the procurement and logistics sector, namely:

Purchasing Manager.
Purchasing representative.
Contracts Manager.
storekeeper.
Logistics Manager.
Warehouse manager.
Tenders specialist.
Procurement specialist.
E-commerce specialist.
Market research specialist.
Warehouse specialist.
Private label sourcing specialist.

The historical context of localization policies in the Kingdom

Over the past few years, Saudi Arabia has made significant strides in restructuring its labor market by launching a series of localization (Saudization) initiatives targeting various key sectors such as telecommunications, accounting, engineering, and medical professions. This move towards the procurement and logistics sector is part of a comprehensive plan to localize critical leadership and executive positions that directly impact supply chains and the financial management of organizations. The gradual shift towards relying on local talent reflects the maturity of the Saudi labor market and the ability of Saudi graduates and professionals to lead these vital sectors efficiently and effectively.

Expected economic and social impact of the decision

This decision carries significant economic and social dimensions at both the local and regional levels. Locally, increasing the Saudization rate contributes to reducing unemployment and increasing the participation of Saudi citizens in the labor market, in addition to keeping purchasing power and managerial expertise within the national economy. Regionally and internationally, enhancing the efficiency of supply chains and procurement with a national workforce increases the attractiveness of the Saudi business environment for foreign investment, as it ensures investors have access to a stable and well-trained local workforce capable of managing logistics operations efficiently according to the latest global standards.

Monitoring mechanisms and application of penalties against violating establishments

The Ministry of Human Resources and Social Development confirmed that its inspection teams have already begun field visits to monitor establishments' compliance with the decision and ensure they meet the required quotas. The Ministry emphasized that it will not hesitate to apply the prescribed penalties against non-compliant establishments after the deadline. The Ministry also urged employers to take advantage of the support and empowerment programs offered by the human resources system to help them attract and train qualified Saudi nationals to successfully fill these positions.