Saudi Arabia has announced a major labor reform by enforcing a 70% Saudization rate in procurement jobs across the private sector, aiming to create high-quality employment opportunities for Saudi nationals and strengthen national participation in key business functions.
New Saudization Policy for Procurement Roles
The Ministry of Human Resources and Social Development has approved the localization of several procurement-related professions in private sector companies employing three or more workers. The decision, issued on November 30, 2025, requires businesses to ensure that at least 70% of procurement positions are filled by Saudi citizens.
This initiative supports the Kingdom’s broader strategy to empower local talent and enhance the role of Saudi professionals in supply chain management and business operations.
Objectives of the 70% Localization Requirement
The new policy is designed to strengthen Saudi Arabia’s labor market by increasing the participation of national talent in vital private-sector roles. The main goals include:
- Creating high-quality and motivating job opportunities for Saudi citizens
- Increasing the contribution of national talent in the private sector
- Enhancing workforce competitiveness within the Saudi economy
- Supporting sustainable employment growth aligned with Vision 2030
Government Support for Private Sector Companies
To ensure smooth implementation, the Ministry will provide various support programs to affected establishments. These include:
- Recruitment and onboarding assistance
- Training and qualification programs
- Employee retention initiatives
- Wage support through the Human Resources Development Fund (Hadaf)
These measures aim to help companies meet localization targets while building a skilled and stable Saudi workforce.
Strengthening Saudi Arabia’s National Workforce
The procurement Saudization policy reflects Saudi Arabia’s commitment to developing its human capital and creating long-term career paths for citizens. Procurement and supply chain roles are essential to business efficiency, making them a strategic focus for nationalization.
By increasing Saudi participation in these fields, the Kingdom seeks to build a more resilient private sector and reduce dependence on foreign labor while supporting economic diversification.
What This Means for Employers and Job Seekers
Private sector employers must now adapt their hiring strategies to comply with the 70% localization requirement. Companies that invest in Saudi talent will benefit from government support programs and a stronger, more competitive workforce.
For Saudi job seekers, this policy opens new career opportunities in procurement, logistics, contracts, and supply chain management, contributing to long-term professional growth and economic stability.
