The implementation of the decision to raise the localization rate to 70% in procurement professions in the private sector began on May 31, 2026, applying to companies with three or more employees in the targeted roles, according to the Ministry of Human Resources and Social Development.
The decision covers 12 professions related to procurement, contracts, logistics, and warehouse management, including Procurement Manager, Procurement Specialist, Contracts Manager, Warehouse Keeper, Logistics Manager, Tendering Specialist, Market Research Specialist, and E-commerce Specialist.
Field Monitoring Begins to Track Compliance
Ministry inspection teams have launched field inspections to verify compliance with Saudization requirements across affected roles.
The Ministry confirmed that companies failing to comply with the new requirements after the grace period will be subject to regulatory penalties, as part of broader efforts to strengthen compliance with Saudization requirements across the private sector.
12 Professions in Procurement, Contracts, and Logistics Included in Localization Scope
The decision marks a new phase in the Saudization of supply chain and procurement roles within private sector establishments, covering roles associated with contract management, procurement operations, warehousing, and logistics services.
The decision reflects the continued expansion of Saudization in specialized roles linked to operational functions and supply chain activities within private sector establishments.
What Does This Mean for Businesses?
The decision has entered the stage of active implementation and enforcement, making the review of workforce structures in procurement, contracting, and logistics departments a priority for affected establishments. Affected companies should review job classifications and Saudization ratios to align with the new requirements and avoid potential penalties.
Compliance planning is becoming more important as Saudization programs expand into specialized roles, particularly in departments connected to operations, supply chains, and procurement.
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