What changed
HRSD published decisions to raise localization (Saudization) rates in specified engineering professions. The ministry’s notice shows the decision was published in July 2026 and took effect from 30 June 2026 for the listed occupations.
The decisions apply to establishments meeting the ministry’s thresholds — for example, those employing the minimum number of workers in the professions concerned. Scope is therefore set by two tests at once: whether a role sits in one of the listed occupations, and whether the establishment meets the threshold for it.
Who is affected
The decisions reach beyond the engineering function itself:
- Private-sector employers with engineering functions that meet the ministry’s thresholds
- HR and payroll teams responsible for headcount and Qiwa records
- Recruitment and mobility providers supporting engineering hiring
- Saudi jobseekers in the affected engineering roles
Why it matters
Raised localization rates change hiring obligations directly: the ratio of Saudi to non-Saudi employees an establishment must maintain in the listed professions moves, and with it the workforce plan built around it.
The downstream effects are wider than recruitment. Payroll is affected where salary thresholds apply, role design is affected where job titles determine whether a position falls in scope, and compliance status is affected because localization performance feeds the establishment’s standing in the wider Nitaqat assessment.
What employers should do
Practical steps, in the order most organisations will need them:
- Identify affected engineering roles across the establishment
- Confirm whether the establishment meets the ministry’s threshold for each listed profession
- Reconcile Qiwa and internal HR records so headcount is counted consistently
- Prepare Saudi recruitment plans for the roles in scope
- Review compensation bands against the requirements applying to those roles
- Review career development paths supporting retention in engineering functions
- Monitor inspections and the establishment’s localization standing
- Maintain evidence of recruitment efforts undertaken