Saudization Implementation: Impact On Sales, Procurement, And Project Management Professions In Saudi Arabia
Category: Saudi Arabia
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The Ministry of Human Resources and Social Development (MHRSD) has officially enforced Saudization in sales, purchase, and project management professions, effective from Sunday, Dec. 24. This marks the culmination of the grace period granted by the ministry, with varying Saudization percentages allocated to each of these crucial sectors.

For establishments employing five or more workers in sales roles, a 15 percent Saudization rate is now in effect. This encompasses roles such as wholesale sales manager, retail sales manager, sales specialist, information and communications technology equipment sales specialist, and sales representative.

In the procurement sector, a 50 percent Saudization rate has been implemented, covering key positions like purchasing manager, purchasing representative, contracts manager, tender specialist, and procurement specialist.

Additionally, project management professions are now subject to 35 percent Saudization in the first phase. This includes roles such as project management specialist, project manager, project management office specialist, communications project manager, and business services project manager. The implementation will occur in two phases, with the first targeting 35 percent and the second 40 percent of the total workforce in project management professions across firms with three or more workers, adhering to a minimum wage of SR6000.

This Saudization initiative is a collaborative effort with the Ministry of Municipal and Rural Affairs and Housing, aiming to create more job opportunities for Saudi youth and enhance their participation in the labor market. The ministry, in partnership with other relevant authorities, is committed to providing incentives for private sector establishments to facilitate the employment of Saudis. This includes support for worker attraction, training, qualification, recruitment processes, career continuity, and access to nationalization support programs via the Human Resources Development Fund (HADAF).

To ensure compliance, the ministry has issued a detailed guide outlining the localization decisions and their implementation mechanisms. Establishments are urged to adhere to Saudization regulations to avoid statutory penalties imposed on violators. This strategic move is part of the ministry's ongoing efforts to foster a more dynamic and productive job environment for Saudi nationals while elevating their contribution to the economic system.

25 Dec, 2023 0 1474
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