Engineering professions, sales professions, and others. The rules in Saudi Arabia for expats are going for phase ll, more updates are happening, and a bigger ratio of localization is taking place. If you still don’t have a recruiting partner to tell you, let us guide you through the positions that became unavailable for expats in 2024.
New localization ratios in 2024 according to the Saudi labor law
Dentistry professions
Saudi Arabia decided to localize the private sector dentistry profession by 35%, starting March 10, 2024.
Engineering professions
The localization of engineering professions in the private sector should take place by 25% starting July 21, 2024. The new decision will be applicable to private sector establishments with 5 workers in engineering professions.
Sales and procurement professions
Saudi Arabia localized sales and promotionary professions on December 24, 2023. The decision includes Saudizing 15% of sales professions, including sales manager, retail manager, sales specialist, wholesale manager, IT sales specialist, and sales representative.
It also covers the localization of procurement professions by 50%, including procurement manager, procurement representative, contracts manager, tender specialist, and procurement specialist.
Phase l ratios that should be expanded at phase ll in 2024
The Ministry of Human Resources and Social Development issued multiple decisions for implementing localization ratios for some businesses over the next year.
Project management professions
ِAccording to the updates on the Saudi labor law, private sector companies with three or more employees working in project management professions were required to reach a 35% localization ratio starting December 24, 2023, and 40% by December 12, 2024, and must also pay their workers in these professions a minimum monthly salary of SAR 6,000.
Postal and freight activities
Private sector companies performing postal and freight activities were required to increase their localization ratio to 100% of workers by October 26, 2023; however, the following will be excluded from this requirement:
- Professions in loading and unloading
- Packaging and wrapping
- Shelving
- Product sorting
- Wheelbarrowing
- Storing
- and facility cleaning.
Provided that the percentage of these professions does not exceed 20% of total workers in one shift at a time.
Women’s tailors and women’s beauty salons
Further, women’s tailors and women’s beauty salons, which employ 10 or more non-Saudi workers, were required to have a minimum of one female Saudi employee by December 24, 2023, with the exception of cleaning, nail care, body care, transportation, and delivery companies, according to the updates on the Saudi labor law.
According to the Saudi labor law, affected employers should review the new localization requirements and comply with applicable timelines. Non-compliant employers will be subject to penalties according to the Saudi labor law, including the suspension of immigration and employment services.
Are there many updates taking place in the localization rules?
In these dynamic economic circumstances, and especially after the pandemic, the entire Saudi labor law is getting more updates and many changes, of course. Yet, not all of the business leaders can adapt to changes in the Saudization plan fast enough or even know about the new rules in Saudi Arabia for expats.
So, if the Saudization plan may cause you any confusion about the correct rates in each category, you can always count on SMASCO’s experts; they’re always up-to-date, know how to comply with the Saudi labor law, are informed before some rules are even issued, and can provide you with the expat workers your project needs with the specific ratios that avoid you the accountability.
Sources
- HRSD, in Partnership with Ministry of Municipal & Rural Affairs and Housing, Announces Decision of Engineering Professions Saudization, publication date: 28 January 2024 – 16 Rajab 1445, hrsd.gov.sa.
- Saudi Arabia: Saudization Requirements Announced for Sales Professions in the Insurance Sector, December 22, 2023, fragomen.com.
- Saudi Arabia to localize 35% of dentistry jobs from March 2024, 13/09/2023, argaam.com.
- Saudi Arabia: Updated Saudization Ratios, APRIL 11, 2023, resources.envoyglobal.com.
- Saudi Arabia localizes sales, procurement professions from today, 24/12/2023, argaam.com.