Saudi Arabia Raises Saudization Rate for Project Management Professions to 70% from February 2027

Saudi Arabia's Ministry of Human Resources and Social Development, in partnership with the Ministry of Municipalities and Housing, has announced an increase in the Saudization rate for targeted project management professions in the private sector to 70%. The new requirement will take effect from 14 February 2027 and will apply to private-sector establishments employing three or more workers in the targeted professions.

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Key Changes

The following changes have been announced:

• The Saudization rate for the targeted project management professions will increase to 70% from 14 February 2027
  
  • This represents a significant increase from the previous Saudization requirements for project management professions, which stood at 35% from December 2023.
• The requirement applies to private-sector establishments with three or more employees working in the targeted professions
• The Saudization percentage will be calculated at the entity level
• The professions covered by the decision are Project Management Manager, Project Management Engineer and Project Management Specialist, in accordance with the Saudi Standard Classification of Occupations
• The Ministry has issued a procedural guide setting out the professions covered, implementation requirements, Saudization calculation methodology and compliance provisions

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Who Is Affected?

The decision applies to private-sector establishments in Saudi Arabia that employ three or more workers in the targeted project management professions. Employers with existing project management teams, as well as businesses planning to recruit for these positions, should consider the new requirement as part of their workforce planning.

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What Should Employers Do Now?

Employers should take the following steps ahead of the 14 February 2027 implementation date:

• Review their current workforce and identify employees working under the professions covered by the decision
• Assess their current Saudization position and the potential impact of the 70% requirement
• Review upcoming recruitment plans for project management roles ahead of the implementation date
• Review the procedural guide issued by the Ministry of Human Resources and Social Development to ensure that the company's workforce structure and employment records are aligned with the applicable requirements

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Notes

The requirements, calculation methodology and scope of the decision should be reviewed against the latest procedural guide issued by the Ministry of Human Resources and Social Development before publication.

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For further guidance on Saudization compliance for employers, please refer to our dedicated insight. If you have questions about how this announcement affects your business, contact our Saudi Arabia team to discuss your options.

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