Other BriefingsSaudi Arabia Expands Saudization Requirements in Key Professions: 2025 Compliance
Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has introduced new Saudization requirements, to be in phases across 2025, to enhance local employment across 269 professions. Companies should note the increased Saudization rates to maintain labor compliance. Government support programs will aid companies in recruiting and training Saudi nationals for affected roles.
Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has announced new Saudization policies aimed at increasing local employment across 269 professions in various sectors, including dentistry, pharmacy, accounting, and engineering. These measures align with the Kingdom’s Vision 2030 objectives and are being implemented in collaboration with key supervisory bodies such as the Ministry of Health, the Ministry of Commerce, and the Ministry of Municipalities and Housing.
2025 Saudization rates across professions
Pharmacy and dentistry professions
Starting July 27, 2025, pharmacy-related activities will require a 55 percent Saudization rate, while pharmacy services in hospitals will need to reach 65 percent. Community pharmacies and medical complexes will also see an increase in localization requirements, with a minimum of 35 percent Saudization. These regulations apply to establishments employing five or more workers in pharmacy professions.
The Saudization process for dentistry professions will be phased, with a 45 percent requirement effective from July 27, 2025, increasing to 55 percent the following year. These requirements apply to establishments with at least three dentists, and employers must also comply with a minimum salary threshold of SAR 9,000 (approximately US$2,400) for Saudi employees.
Enhanced Saudization in the healthcare sector
Saudization rates will increase across four key private-sector healthcare professions, taking effect in 2025:
- Medical laboratories: 70 percent (up from 60 percent)
- Physiotherapy: 80 percent (up from 60 percent)
- Radiology: 65 percent (up from 60 percent)
- Therapeutic nutrition: 80 percent (up from 60 percent)
These increases will be implemented in two phases:
- April 17, 2025 – The new rates will apply to all hospitals and health facilities in major cities, including Riyadh, Makkah, Madinah, Jeddah, Dammam, and Al Khobar, as well as large health facilities in other locations.
- October 17, 2025 – The regulations will extend to all other hospitals and health facilities across Saudi Arabia.
To facilitate the transition, the Saudi government will provide support in recruiting and training Saudi nationals for affected fields. Employers may need to restructure their workforce to ensure compliance and avoid penalties.
Accounting professions
A structured five-phase Saudization plan for accounting professions will commence on October 27, 2025. The policy will initially require a 40 percent Saudization rate, progressively increasing to 70 percent over a five-year period. Businesses with five or more accountants must ensure compliance with these changes.
Engineering professions
From July 27, 2025, private-sector establishments with five or more engineers must have at least 30 percent of their workforce comprised of Saudi nationals in engineering technical roles.
Saudization and its economic impact
Saudization, officially known as the Saudi nationalization scheme or Nitaqat, is a policy designed to boost local employment by mandating that companies fill their workforce with Saudi nationals up to prescribed levels. Since 2017, Saudization policies have evolved, setting different percentage requirements based on industry and company size.
The latest measures emphasize the Kingdom’s commitment to reducing unemployment and strengthening the domestic workforce. Employers operating in affected sectors must align with the new regulations and procedural guidelines issued by MHRSD to ensure a smooth transition and adherence to the updated Saudization framework.
Key takeaways for businesses
- The new Saudization rates will take effect in mid-to-late 2025, covering pharmacy, dentistry, accounting, engineering, and healthcare professions.
- Employers must strategically plan workforce adjustments to meet compliance requirements and avoid penalties.
- Government support programs will aid companies in recruiting and training Saudi nationals for affected roles.
- Businesses should review procedural guidelines issued by MHRSD to ensure smooth implementation.
With these new regulations, Saudi Arabia is reinforcing its drive toward a diversified and self-sufficient workforce in line with its long-term economic vision. Organizations operating in the Kingdom must proactively adapt to these changes to remain compliant and competitive in the evolving labor market.
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