HomeSaudi ArabiaSaudi Arabia expands Saudization to more sectors

Saudi Arabia expands Saudization to more sectors


RIYADH, 3 April – The Ministry of Human Resources and Social Development (MHRSD) has announced that it is expanding the Saudization drive to new professions and activities. These include project management; procurement and sales; outlets providing services for shipping activities and freight brokerage; and outlets for decor and women’s tailoring.

The Saudization drive is in various phases of implementation to create more jobs for young Saudi men and women. The ministry, in partnership with other ministries and supervisory authorities, embarked on the Saudization journey with the aim of providing more stimulating and productive job opportunities for Saudis and raising the level of their participation in the labor market.

Saudization of project management professions include project manager, and project management specialist. Saudization of this sector will be implemented, in cooperation with the Ministry of Municipal, Rural Affairs and Housing, in two phases. The first phase targets 35 percent and the second phase 40 percent of the total number of workers in project management professions in all the firms where there are three or more workers, and the minimum wage has been set at SR6000.

The procurement professions were already localized by 50 percent for establishments that employ three or more workers in procurement jobs, and sales professions were localized by 15 percent for establishments that employ five or more workers in sales jobs. Procurement professions that come under Saudization include purchasing manager; purchasing representative; food manager; private trademark supply specialist, and tendering specialist.

The sales professions that come under Saudization include sales manager, internal sales and customer services manager, patent specialist, marketing sales expert, printer and copying equipment salesman, computer salesperson, retail sales manager, wholesale sales manager, commercial specialist, and sales specialist.

The ministry, in cooperation with the Ministry of Transport and Logistics, and the General Transport Authority implemented Saudization in 14 activities that cover outlets providing services for freight activities and freight brokers. It had also implemented total Saudization in administrative jobs of all outlets for women’s decoration and sewing services. The regulation to appoint one Saudi female worker in technical professions in the outlets where there are 10 female workers or more in technical professions also came into force.

The ministry announced the start of implementing the second phase of Saudization of postal activities and parcel service, as well as the start of the second phase of localization of the medical appliances sector, effective from April 1, after the end of a grace period granted for the localization of these professions and activities.

The localization of mail and parcel transportation activities includes limiting the profession of CEOs to Saudis, and the localization of first-level professions of senior management by 50 percent in all establishments licensed by the supervisory authority to practice postal and parcel transportation activities, where the localization is implemented in cooperation with the Ministry of Transport and Logistics and the Public Transport Authority.

The second phase of the localization of the medical appliances sector included the Saudization of sales, advertising and promotion of medical appliances and supplies by 80 percent, and the localization of engineering and technical professions for medical appliances by 50 percent. It applies to all establishments operating in the activities of medical appliances and supplies and is carried out in cooperation with the Ministry of Health.

The ministry confirmed that it will provide a package of incentives to support the private sector establishments and assist them in hiring Saudis, in addition to benefiting from all Saudization support programs available in the system, as well as the support and employment programs through the Human Resources Development Fund (HADAF).

The ministry has issued procedural guides that explain the details of the localization of professions and activities and the mechanisms for their implementation. The ministry also instructed the private establishments to comply with these decisions in order to avoid statutory penalties that will be applied against violators. — Saudi Gazette


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