Saudi firms ordered to localise 70% of procurement roles

Saudi Arabia has approved a decision requiring private-sector companies to localise 70 per cent of key procurement-related professions, as part of broader efforts to strengthen the participation of national talent in the labour market.

According to a report by Saudi Gazette, the decision was issued by the Ministry of Human Resources and Social Development on November 30, 2025. The requirement applies to private-sector establishments employing three or more workers.

Under the new rules, companies covered by the decision must meet a localisation rate of 70 per cent in the targeted procurement roles. The ministry said the move is part of ongoing initiatives to expand employment opportunities for citizens and increase their presence in private-sector functions that play a central role in business operations and supply chains.

The ministry said the decision aims to provide high-quality and motivating job opportunities for citizens, increase the contribution of national talent to the private sector, and enhance the overall competitiveness of the workforce within the national economic system.

To support implementation, a range of assistance programmes will be made available to affected establishments. These include support for recruitment, onboarding and employee retention, access to training and qualification programmes, and wage support through the Human Resources Development Fund. Additional initiatives will also be introduced to promote professional stability.

According to the ministry, the localisation policy is intended to support national competencies, create sustainable career paths for citizens, and ensure long-term employment growth driven by skilled national talent, in line with broader human capital development and private-sector growth objectives.