Change in rules for the Saudi nationalization scheme - | Hudson McKenzie

Change in rules for the Saudi nationalization scheme

November 3, 2021 | Business, Employment, Immigration, News

The Saudi Ministry of Human Resources and Social Development has made some changes to “Saudization” and employment requirements. “Saudization” is the Saudi Arabia nationalization scheme which requires companies to employ Saudi nationals in their workforces up to certain levels. 

This policy is aimed at reducing reliance on expat workers. Although this policy has been existent for some time, over the last 5 years, the Saudi government has made it mandatory that certain roles should be exclusively taken up by Saudi nationals in order to promote and develop the local workforce.

The rule changes will affect employers and foreign migrants working in Saudi Arabia. There will be strict penalties enforced on employers that do not comply. Along with this, companies who need to employ sepcialised workers will no longer be able to do so in certain industries

As part of the Ministry’s plan, it is restricting employment in secretarial, translation, storekeeping, marketing and data entry jobs from May 2022. In addition, restrictions will be made to those working in healthcare, medical appliances, dentistry, and pharmaceutical sectors as of April 2022. Further details will be published by the Saudi government in due course. 

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The information provided does not amount to legal advice, if you require legal advice on this matter please contact one of our professionals at Hudson McKenzie.