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The Ministry of Human Resources and Social Development issued the decision in partnership with the Ministry of Municipalities and Housing, applying the 70 percent Saudization threshold to roles classified under the Saudi Standard Classification of Occupations that include project management director, project management engineer and project management specialist. Establishments in the private sector that employ at least three workers in these professions will face the new requirement, according to a ministry statement released on Sunday. The ministry published a procedural guide on its website that details covered occupations, methods for calculating compliance ratios and employer obligations to support implementation ahead of the deadline.
Previous phases of Saudization for the same professions began with a 35 percent target in December 2023, followed by a subsequent increase, a series of ministry announcements from that period show. The latest move raises the bar significantly with six months provided for companies to adjust their workforces through hiring, training or other measures. Regulatory teams from the ministry will monitor compliance at affected establishments once the rule takes effect, the current statement indicated.
This latest Saudization step aligns with the Kingdom’s Labor Market Strategy and broader Vision 2030 objectives that seek to elevate Saudi national employment in the private sector while reducing reliance on expatriate labor. A Center for Strategic and International Studies assessment found that unemployment among Saudi nationals dropped from 12.3 percent in 2016 to approximately 7 percent by 2025, marking progress toward original Vision 2030 goals. The policy forms one element in a series of similar decisions that have targeted procurement, sales, marketing and engineering professions in recent years.
The Ministry of Human Resources and Social Development has issued comparable mandates across multiple sectors, with many providing a six-month implementation window after announcement to allow for workforce transitions. Private sector entities subject to the rule must prioritize Saudi candidates who meet qualification standards or invest in upskilling programs to reach the mandated percentage. Data from earlier ministry releases on related professions placed the focus on both quantity and quality of Saudi hires, including minimum salary thresholds in some cases.
Project management roles hold particular importance for infrastructure development, megaprojects and housing initiatives advanced under Vision 2030, according to the partnership between the two ministries. The procedural guide emphasizes accurate record-keeping and regular reporting to verify that targeted positions meet the localization criteria. Companies falling short of the 70 percent benchmark after February 14, 2027, will encounter regulatory consequences outlined in the ministry’s compliance framework.
General Authority for Statistics reports have tracked steady gains in Saudi workforce participation across professional categories as Saudization initiatives expanded. The current decision builds on that foundation by addressing a field central to project execution in both public and private domains. Affected businesses can access detailed instructions through the ministry portal to prepare for the adjusted requirements well in advance of the effective date.
