Saudi authorities have introduced updates to workforce nationalisation (Saudization) and visa policies, impacting private sector businesses and foreign residents.

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New Saudization quotas will apply to specific industries, requiring businesses to adjust their workforce accordingly. In the dentistry sector, companies with at least three dental professionals must ensure 45% of their workforce is Saudi nationals by 27th July 2025, increasing to 55% by 27th January 2026. Engineering firms employing at least five engineers must meet a 30% Saudization requirement by 27th July 2025.

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The accounting sector will see a gradual increase in requirements. Businesses with five or more accountants must comply with a 40% Saudization rate from 27th October 2025, which will rise by 10% annually until it reaches 70% in 2028.

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Smaller firms with three to four accountants must meet a 30% quota by 27th October 2029. The pharmacy sector will also be affected. Starting 27th July 2025, hospitals must ensure that 65% of their pharmacy workforce consists of Saudi nationals. Community pharmacies and medical complexes will be required to meet a 35% threshold, while other pharmacy-related businesses must achieve 55% Saudization.

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Companies that fail to comply with these targets risk penalties, including restrictions on essential government services such as work permit renewals and employee transfers.

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In addition to these workforce changes, Saudi Arabia has suspended one-year multiple-entry visas for business, tourism, and family visits for nationals of 13 countries, including Algeria, Bangladesh, Egypt, India, Indonesia, Iraq, Jordan, Morocco, Nigeria, Pakistan, Sudan, Tunisia, and Yemen. While affected individuals can still apply for single-entry visas, processing times may be longer, and approvals may be more difficult, particularly during the Hajj season.

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Changes have also been introduced to exit visa requirements for foreign nationals holding standard residence permits. Residents must now have at least 30 days of validity on their residence permit before applying for an exit visa.

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Previously, applications were allowed up until the final day of validity. If a permit has less than 30 days remaining, renewal is required before an exit visa can be issued. When a permit is valid for between 30 and 60 days, the exit visa will be issued for the same remaining period. If the permit has more than 60 days of validity, the exit visa will still be limited to 60 days.

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These changes may require some foreign nationals to leave Saudi Arabia sooner than under previous rules. Employers must plan ahead to ensure work permits are renewed in time to avoid complications with exit visa applications.

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Should you have any queries regarding the above information or if you 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 +44(0) 20 3318 5794.

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The information provided does not amount to legal advice.