As you may well already know, part of Saudi Arabia’s Vision 2030 plan to empower national talent and tackle unemployment.
The Ministry of Human Resources and Social Development (MHRSD), in collaboration with relevant ministries, has announced sweeping Saudization regulations across several key professional sectors.
Effective July 27, 2025, new localization mandates are being enforced for dental, pharmacy, and engineering professions in the private sector.
Only Saudi employees earning the minimum threshold and holding a valid SCFHS license (where applicable) count toward the localization percentage. This applies to all sectors mentioned.
1. Dental Sector: Phased Saudization Begins
MHRSD and the Ministry of Health have issued Ministerial Resolution No. 103107 to localize dental professions in the private sector.
The decision introduces Saudization in two phases:
- Phase 1: 45% localization by July 27, 2025
- Phase 2: 55% localization by January 27, 2026
Who is Affected?
This regulation applies to all private sector establishments employing three or more workers in dental professions.
Roles covered include:
- General dentists
- Orthodontists
- Pediatric dentists
- Oral and maxillofacial surgeons
- Dental anesthesiologists and other specialists
Key Requirements:
- Minimum Monthly Salary: SAR 9,000 to count toward Saudization quota
- Professional License: Mandatory accreditation from the Saudi Commission for Health Specialties
- Penalties: Non-compliance will trigger legal actions under Ministerial Resolutions 75913 and 44558
Support Programs:
To facilitate the transition, the government will offer:
- Recruitment and talent search assistance
- Training and upskilling initiatives
- Support for job stability and onboarding
2. Pharmacy Sector: Tiered Saudization Rates by Industry
In a parallel move, the MHRSD has enacted Ministerial Resolution No. 103111 to localize pharmacy-related professions, starting July 27, 2025.
This regulation introduces differentiated Saudization rates based on the nature of the establishment:
- 65% in hospitals
- 55% in pharmaceutical companies, factories, and scientific offices
- 35% in community pharmacies and medical centers
Targeted Roles:
The scope includes:
- Pharmacists and clinical pharmacists
- Pharmaceutical sales specialists
- Specialists in toxicology, bacteriology, epidemiology, and natural medicine
- Directors, trainers, and consultants in pharmaceutical sciences
Inclusion Criteria:
- Minimum Monthly Salary: SAR 7,000
- Valid License: From the Saudi Commission for Health Specialties
- Facility Size: Applies to organizations with five or more pharmacy professionals
Government Incentives:
Establishments will benefit from:
- Talent sourcing support
- Specialized training and qualification programs
- Employment stability funding
- Priority access to national Saudization support channels
3. Engineering and Technical Roles: Expanding Opportunities for Saudi Talent
The third significant update, effective July 27, 2025, targets the engineering and technical sectors. In cooperation with the Ministry of Municipal and Rural Affairs and Housing, MHRSD has mandated a 30% Saudization rate in these fields, with a minimum wage of SAR 5,000.
Goals of the Program:
- Provide motivating and stable employment opportunities for Saudi nationals
- Increase Saudi participation in private sector technical jobs
- Strengthen national contributions to the economy
This regulation is part of the broader ecosystem to align workforce development with Vision 2030’s objectives, particularly in high-skill and high-impact areas like infrastructure, construction, and technology.
Support Measures Include:
- Recruitment support via the Human Resources Development Fund (Hadaf)
- Training and qualification assistance
- Employment stability mechanisms
What This Means for Employers and Job Seekers
These new Saudization mandates mark a decisive shift in Saudi Arabia’s labor strategy. Private sector companies must proactively review their current staffing, update HR policies, and begin recruitment efforts to meet localization quotas.
While the grace periods offer some flexibility, penalties for non-compliance will be enforced after January 2026 for dental roles, and shortly thereafter for pharmacy and engineering professions.
For Saudi job seekers, especially recent graduates, these decisions open up a wide array of career paths with better salaries and professional growth in sectors historically dominated by expatriate workers.
Is Your Business Ready?
To stay ahead of these mandates, your team should:
- Audit current workforce by nationality, salary, and role
- Confirm licensing (SCFHS or relevant body) for Saudi staff
- Map hiring plans to meet quotas before the grace period ends
- Prepare reporting data to reflect compliant localization
Stay Ahead of Regulatory Concerns and Turn Compliance into Strategy with PROVEN
This comprehensive effort to localize core professional fields is both an economic and social milestone. It reinforces Saudi Arabia’s strategic intent to become self-reliant in essential services while equipping its youth with meaningful employment opportunities.
These sector-specific mandates are part of the wider Nitaqat program, which ties workforce localization directly to a company’s eligibility for permits, licenses, and operational expansion in Saudi Arabia.
Talk to us about how we can help you align with the regulations, tap into the support programs, and be part of the Kingdom’s transformative journey.
