ARTIFEX NEWS

Saudi Arabia to Increase Saudization in Project Management to 70% by 2027

· Practice
StatusConfirmed by the Ministry of Human Resources and Social Development.

Saudi Arabia has announced a significant increase in Saudization requirements for project management professions, effective February 14, 2027. The mandatory local workforce quota will rise from 50% to 70%, according to the Ministry of Human Resources and Social Development (MHRSD). This change is part of a broader push to replace foreign workers with Saudi nationals across key economic sectors. The new 70% target aims to increase the number of Saudi nationals employed in project management roles across the Kingdom's private sector. The ministry has also announced Saudization requirements for several other activities and professions, though specific details for each sector vary. Employers should review the official circulars for full requirements. On June 25, 2026, the ministry announced the suspension of enforcement of Saudization decisions for 16 specific activities until further notice. This decision follows thorough analysis and multiple consultations with the private sector, delaying the previously announced April 2026 implementation. In 2025, the ministry began implementing mandatory Saudization of automotive repair shops, preventing non-Saudis from opening new workshops in the sector. In July 2026, Saudization in project management was expanded to cover all sectors. The first phase targeted project management jobs in the private sector, with the Ministry announcing the decision in July 2023 and the implementation beginning in January 2024. The decision was extended to all sectors in 2026. Companies employing project managers in Saudi Arabia should develop recruitment plans to meet the 70% target by February 2027, consider training programs for Saudi nationals in project management, and monitor ministry announcements for any further changes or clarifications.

Why this mattersThis increase in Saudization requirements for project management roles will impact companies operating in Madinah, as they will need to adjust their recruitment strategies to comply with the new quotas. This may lead to increased demand for training programs and partnerships with local educational institutions to ensure a skilled Saudi workforce. Companies may also face challenges in meeting these targets, potentially affecting project timelines and costs.
Key figures70% Saudization · Effective February 14, 2027
Source: Visasupdate
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