Revised Saudization quota for engineering sector starting from 21 July 2024

Starting from 21 July 2024, the Saudization quota for private sector companies employing five or more certified engineers will increase from 20 percent to 25 percent. This Saudization quota applies to all engineering positions as defined by the Ministry of Human Resources and Social Development (MHRSD). 

There are a few exceptions to this rule. For instance, if an individual, despite being an engineer by profession, is not accredited and does not work in an engineering role, they will not be included in the company's Saudization percentage calculation. Additionally, certified Saudi engineers who earn less than SAR 7,000 per month will also not be included in the Saudization percentage calculation of the company.

For more information, please visit the MHRSD website. 

Deloitte’s view

To comply with the new Saudization quota, employers should conduct a comprehensive review of their workforce, focusing on the number and salaries of accredited engineers. They may need to hire more certified Saudi engineers or raise the salaries of existing ones to meet the new quota. Investment in training programs for non-accredited engineers could also be beneficial.

Employees, especially non-accredited engineers, should consider seeking accreditation to enhance their job security and potential earnings. They should also engage with their employers to understand the impact of these changes on their roles.

In essence, both employers and employees need to collaborate to ensure compliance with the new Saudization rules, thereby avoiding penalties and promoting greater participation of Saudi nationals in the private sector.