Saudi Arabia Announces Major Localization Push Across Key Sectors too Boost Employment
In a significant move to promote local employment, the Ministry of Human Resources and Social Development has unveiled a series of decisions aimed at increasing localization rates across 269 professions in various sectors. These measures, developed in collaboration with key supervisory bodies such as the Ministry of Health, the Ministry of Trade, and the Ministry of Municipalities and Housing, are designed to enhance job opportunities for Saudi citizens and support the sustainability of the labor market.
Raising localization in Pharmacy and Dentistry
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The pharmacy sector is set to witness a ample increase in localization rates, with new measures taking effect from July 23, 2025. Community pharmacies and medical complexes will see a 35% localization rate, while hospitals will achieve 65%, and other pharmacy-related activities will reach 55%. Facilities with five or more employees in pharmacy professions will be required to comply with these new regulations.
Similarly, the dentistry sector will undergo a phased approach to localization. The first stage, starting on July 23, 2025, will enforce a 45% localization rate, increasing to 55% after 12 months. Additionally,the minimum wage for dental professions will be raised to 9,000 riyals to ensure fair compensation for local talent.
Accounting Professions to See gradual Localization
In partnership with the Ministry of Commerce, the government has announced a five-year plan to increase localization in accounting professions. Starting on October 22, 2025, establishments with five or more accountants will be required to achieve a 40% localization rate, gradually increasing to 70% by the end of the plan. This initiative aims to enhance the presence of Saudi nationals in private companies and improve job opportunities in the accounting sector.
Engineering Technical Professions Targeted
The engineering sector will also benefit from these localization efforts, with a 30% localization rate set to be implemented from July 23, 2025.This decision applies to all private sector facilities with five or more employees in engineering technical professions and is part of a broader strategy to develop the sector and elevate the level of Emiratisation in technical roles.
Implementation and Penalties
To ensure compliance, the Ministry of human Resources and Social Development has issued detailed procedural guidelines for calculating localization rates and outlined penalties for non-compliant establishments. Business owners can access all relevant information through the Ministry’s official website.
Supporting Saudi Vision 2030
These decisions align with the Kingdom’s broader Vision 2030 goals, which focus on improving the local labor market and increasing employment opportunities for citizens across various sectors. By prioritizing national competencies, Saudi arabia aims to achieve a comprehensive renaissance in its labor market, ensuring that Saudi citizens become the first choice for jobs and professions.
| Sector | Localization Rate | Effective Date | Key Details |
|————————–|———————–|————————–|———————————————————————————|
| Pharmacy | 35% – 65% | July 23, 2025 | Applies to community pharmacies, hospitals, and medical complexes.|
| Dentistry | 45% – 55% | July 23, 2025 | Phased approach with minimum wage set at 9,000 riyals. |
| Accounting | 40% – 70% | October 22, 2025 | Gradual increase over five years for establishments with five or more accountants. |
| Engineering Technical | 30% | July 23,2025 | Applies to private sector facilities with five or more employees. |
These initiatives underscore Saudi Arabia’s commitment to fostering sustainable development and achieving its future goals by empowering its citizens in the workforce.
Saudi Arabia’s Localization Drive: Expert Insights on Boosting Employment in Key Sectors
In a landmark effort to empower its workforce, Saudi Arabia has announced a series of measures aimed at increasing localization rates across 269 professions. These initiatives, developed in collaboration with key ministries, are designed to enhance job opportunities for Saudi citizens and support the Kingdom’s Vision 2030 objectives. In this exclusive interview, Dr. Ahmed Al-Mansoori, a leading labor market specialist, shares his insights on these transformative policies with John Harper, senior Editor of World-Today-News.
Understanding the Localization Push
John Harper: Dr. Al-Mansoori, thank you for joining us. Can you provide an overview of Saudi Arabia’s latest localization initiatives and their meaning?
Dr. Ahmed Al-Mansoori: Absolutely, John. These measures are part of a broader strategy to reduce reliance on expatriate labor and create more opportunities for Saudi nationals. By setting specific localization rates in key sectors like pharmacy, dentistry, accounting, and engineering, the government aims to ensure that Saudi citizens become the primary beneficiaries of the Kingdom’s economic growth. These efforts are aligned with Vision 2030, which emphasizes sustainable advancement and a strong, self-reliant labor market.
Focus on Pharmacy and Dentistry
John Harper: The pharmacy and dentistry sectors are set to see notable changes. Could you elaborate on these?
Dr.Ahmed Al-Mansoori: Certainly. For the pharmacy sector, we’ll see localization rates ranging from 35% in community pharmacies to 65% in hospitals, effective July 23, 2025. These measures target facilities with five or more employees.Similarly,the dentistry sector will adopt a phased approach,starting at 45% and increasing to 55% within a year. Notably, the minimum wage for dental professions has been raised to 9,000 riyals to ensure fair compensation and attract local talent. These steps reflect the government’s commitment to enhancing the quality of healthcare services while creating meaningful employment opportunities for saudis.
Gradual Localization in Accounting
John Harper: The accounting sector is also part of this initiative. How will the phased approach work here?
Dr. Ahmed Al-Mansoori: Starting October 22, 2025, establishments with five or more accountants will be required to achieve a 40% localization rate, gradually increasing to 70% over five years.This phased approach allows businesses to adapt systematically while ensuring a steady influx of Saudi talent into the accounting profession. By collaborating with the Ministry of Commerce, the government aims to strengthen the sector and improve job prospects for nationals.
Engineering Technical Professions
John Harper: Engineering technical roles are another focus area.What does this mean for private sector facilities?
Dr. Ahmed Al-Mansoori: From July 23, 2025, private sector facilities with five or more employees in engineering technical professions will need to achieve a 30% localization rate. This move is crucial for developing technical expertise among Saudis and reducing dependency on foreign labor.It’s also a step toward aligning with global standards in engineering and technical fields.
Ensuring Compliance and Supporting Vision 2030
John Harper: How will the government ensure compliance with these new regulations?
Dr. Ahmed Al-Mansoori: The Ministry of Human resources and Social Development has issued detailed guidelines for calculating localization rates and will impose penalties on non-compliant establishments. Business owners can access all necessary details thru the Ministry’s official website. These measures are not just about enforcement but also about supporting businesses in transitioning to a more localized workforce. Ultimately, they contribute to the broader goals of Vision 2030, which seeks to create a vibrant society and a thriving economy.
Concluding Thoughts
John Harper: Dr. Al-Mansoori, in your view, what are the key takeaways from these localization initiatives?
Dr. Ahmed Al-Mansoori: The key takeaway is that Saudi Arabia is taking a proactive and structured approach to empower its citizens and reduce reliance on foreign labor. By targeting specific sectors with measurable goals, the Kingdom is ensuring sustainable development and a robust labor market. These efforts not only support economic growth but also enhance the quality of services across key industries. It’s a win-win for both the workforce and the economy.
John Harper: Thank you, Dr. Al-Mansoori, for your valuable insights. It’s clear that these initiatives are a significant step toward achieving Saudi Arabia’s long-term vision.
