On June 30, 2026, Saudi Arabia implemented a 30% Saudization requirement for private sector engineering professions, aiming to increase Saudi nationals' employment in skilled occupations. The Ministry of Human Resources and Social Development, in partnership with the Ministry of Municipalities and Housing, introduced this policy. Private sector establishments with five or more employees in 46 specified engineering disciplines, including architecture and aerospace engineering, must comply with the regulation. Professionals in these fields must also hold accreditation from the Saudi Council of Engineers.
Inspection teams have begun conducting compliance checks, and establishments that fail to meet the localization rate after the grace period will face penalties under labor regulations. The decision supports Saudi Arabia's Vision 2030 program, which seeks to diversify the economy and create more employment opportunities for citizens. Recent data from the General Authority for Statistics shows progress towards these goals, with the unemployment rate among Saudi nationals falling to 6.4% in the first quarter of 2026.
The overall unemployment rate, including both Saudi and non-Saudi workers, dropped to 3.1% from 3.5% in the previous quarter. Labor force participation reached 67.2%, with unemployment among Saudi women declining to 9% and among Saudi men standing at 4.9%. The introduction of the 30% Saudization requirement is a significant step towards achieving the objectives of Vision 2030 and strengthening the presence of Saudi professionals in engineering roles.
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📰 Source: Siasat Gulf