Saudi Arabia is pushing ahead with plans to deepen national participation in key sectors, shifting from “numerical Saudization” to a more sustainable, skills-based model. A decision to raise the Saudization rate in private-sector project management jobs to 70% by February 2027 is expected to reshape the labor market, placing Saudi professionals in leading roles across major infrastructure, housing, tourism and construction projects. The decision, issued by the Ministry of Human Resources and Social Development in partnership with the Ministry of Municipalities and Housing, applies to establishments employing three or more workers in project management roles, including managers, engineers and project management specialists. The move comes as construction, infrastructure, housing and tourism expand rapidly across the Kingdom. The ministry has also published an implementation guide detailing the jobs covered, enforcement mechanisms, how Saudization rates will be calculated and compliance requirements. The timeline gives private-sector companies room to reorganize their staffing structures and plan for future workforce needs before the rules take effect. Stronger labor market ahead of rollout The decision comes against a backdrop of improving labor market indicators. Unemployment among Saudis fell to 6.8% in the first quarter of this year, while data from the Qiwa platform showed more than 258,000 new Saudi workers entered the market in the second quarter. More than 419,000 employment contracts were documented during the same period. Qiwa also processed more than 3 million services in the quarter, issued over 163,000 salary certificates and more than 63,000 experience certificates for Saudi nationals. On Saudization specifically, the platform issued more than 72,000 certificates to establishments that met localization requirements, as part of efforts to monitor compliance with measures to increase the participation of Saudi talent. Saudization beyond headcount Badr al-Anazi, a board member of the Saudi Human Resources Association, described the decision as important and mature, particularly as major projects expand across Saudi Arabia and national talent develops under gradual, carefully planned replacement programs. He told Asharq Al-Awsat that Saudi professionals were well placed to meet demand, but said the real challenge was not the number of available workers. It was experience. Project management requires practical expertise in planning and in managing risk, costs and time, he stressed. Al-Anazi said the decision should be seen as a move toward qualitative Saudization and knowledge transfer, rather than simply replacing a non-Saudi employee with a Saudi national. That requires sustained follow-up until Saudi professionals can independently lead major projects. Competition for talent and wages Al-Anazi explained the main challenge would not be the Saudization requirement itself, but whether the market can move from headcount-driven localization to sustainable, skills-based Saudization. He expects demand for Saudi professionals to rise, intensifying competition over wages, particularly in major sectors and large projects, which could force companies to reassess their organizational and salary structures to retain staff and compete for talent in the Saudi market. “Numerical Saudization” focuses on meeting a set percentage of Saudi employees. “Qualitative Saudization” goes further, focusing on the competence, experience and ability of Saudi professionals to perform their roles and lead operations effectively. A market set for change For Al-Anazi, success will not be measured by hitting 70% on paper. It will depend on whether the Saudi project managers and specialists who make up that share are genuinely capable of leading projects. He said the impact could extend far beyond creating more jobs for Saudis and could reshape the project management market itself. The Ministry of Human Resources has previously introduced Saudization requirements for project management jobs in phases, reflecting a broader drive to localize high-value, pivotal roles. Al-Anazi expects the policy to support private sector productivity over the long term and strengthen its ability to absorb specialized Saudi talent as nationals take on a larger role in project management across engineering, administrative and technical professions. Economic impact goes beyond hiring Financial and economic adviser Dr. Hussein al-Attas said the decision was more strategic than employment-driven. Project management, he told Asharq Al-Awsat, sits at the heart of delivering Saudi Vision 2030 targets across construction, infrastructure, tourism, housing and logistics. Its economic impact will go beyond adding Saudi employees. It is expected to increase demand for specialized national talent and create higher-value jobs, he added. In the short term, however, companies that rely heavily on specialized foreign labor could face higher hiring costs, pushing them to restructure teams and invest earlier in training. Investing in human capital Al-Attas said he did not expect the decision to become a major obstacle to local or foreign investment, pointing to the implementation period running until February 2027, giving companies time to adjust. Instead, the measure could spur investment in human capital, training and professional certifications, he went on to say. Companies will effectively face two choices: recruit qualified Saudi professionals or invest in developing their own workforce, he remarked. For foreign investors, clarity and stability in Saudization rules matter more than the percentage itself. Three levels of impact Al-Attas identified three stages for maximizing the decision’s local economic value: hiring and training Saudi professionals; transferring knowledge and expertise from international companies; and building a generation of Saudi project managers able to lead major projects at home and abroad. Like Al-Anazi, he said success should not be judged by whether the 70% target is achieved on paper. The real test will be whether Saudi professionals can manage projects to global standards on cost, time, quality and risk. The central challenge remains the gap between academic qualifications and practical, on-the-ground experience, he noted.
