What changed

MHRSD announced a decision, taken in coordination with the Ministry of Municipal and Rural Affairs and Housing, raising the localisation rate for project management professions in the private sector to 70%. The decision takes effect on 14 February 2027.

The ministry published an operational procedural guide (الدليل الإجرائي) alongside the decision, setting out how the rate is calculated, the compliance rules that apply, and the support programmes available to employers working toward the target.

How the rate is applied

The decision covers roles as defined in the Saudi Unified Occupational Classification, so scope is determined by job code rather than by job title. An establishment’s own naming of a role does not decide whether it falls in scope.

The rate is applied at entity level — that is, per company rather than across a group — and reaches private establishments employing three or more workers in the targeted professions. Establishments below that threshold are outside the requirement as announced.

Why it matters

A 70% target is high, and project management roles are typically among the harder positions to localise quickly. For project-heavy businesses — construction, engineering, infrastructure and municipal work — this affects workforce planning, recruitment, training budgets and expatriate staffing models together rather than in isolation.

The February 2027 date is the planning horizon, not a warning shot. Recruitment and training cycles for senior project roles are long, so the interval between publication and effect is the window in which the target is realistically met.

What employers should do