New Saudization rules announced

‍

Saudi Arabia continues its strategic rollout of Saudization initiatives by introducing new localisation requirements across a range of roles in the tourism sector. These changes, scheduled to be phased in over the next three years, reflect the Kingdom’s commitment to increasing employment opportunities for Saudi nationals and advancing its broader Vision 2030 objectives to diversify the economy and reduce reliance on foreign labour.

‍

Starting 22nd April 2026, specific roles within the tourism industry will be subject to mandatory Saudization thresholds. Positions such as hotel receptionists, call centre agents, and information clerks will require 100% Saudi participation. Additionally, roles like branch managers and tour guides must meet a 70% Saudization rate, while tourist agents and sales representatives will be subject to a 50% localisation requirement.

‍

The program expands further in 2027. Effective from 3rd January 2027, chef positions will fall under a 30% Saudization rule, marking the first time culinary roles have been included in this framework. Then, from 2nd January 2028, a 50% Saudization requirement will apply to senior positions, including hotel managers and sales managers.

‍

These developments align with Saudi Arabia’s ongoing policy trajectory of increasing national participation in the workforce. Similar Saudization reforms have already been applied in sectors such as accounting, engineering, pharmacy, dentistry, healthcare, and consulting. The extension of these requirements into the tourism industry underscores the government’s long-term intent to develop local talent across both technical and service-based professions.

‍

For foreign and local employers operating in the tourism sector, early planning will be essential. Companies must assess their current workforce composition, invest in recruitment and training programs for Saudi nationals, and ensure timely compliance with the newly established thresholds. Failure to comply with Saudization requirements may result in penalties, licensing issues, or restrictions on future hiring.

‍

Contact and Disclaimer

Should you have any queries regarding the above information or require assistance with your corporate, employment, or immigration matter, please get in touch with a legal professional at Hudson McKenzie via email at londoninfo@hudsonmckenzie.com or by telephone at +44(0) 20 3318 5794.

‍

The information provided does not amount to legal advice.