Saudi Arabia raises Saudization goals again, targets now as high as 80% in some sectors

TL;DR:

• From July 27, 2025, Saudization rates rise across pharmacy (35–65%), dentistry (starts at 45%), and technical engineering (30%) sectors in Saudi Arabia.
  
  
• Updated quotas apply to private-sector establishments with specified company sizes and minimum salary thresholds (SAR 7,000–9,000).
  
  
• The reform is backed by incentives and procedural guidance issued by the Ministry of Human Resources and Social Development ( MHRSD ) to meet Vision 2030 goals.
  
  

As part of its Vision 2030 employment initiative, Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has raised Saudization targets in healthcare and technical engineering sectors. The updated quotas took effect on July 27, 2025, covering professions such as pharmacy, dentistry, technical engineering, and accounting impacting 269 roles across entities nationwide.

Sectoral breakdown of new Saudization rates
1. Pharmacy

• 35% for community pharmacies and medical centres
  
  
• 65% for hospital pharmacy operations
  
  
• 55% for other pharmacy-related roles
  

Mandates apply to establishments with five or more pharmacy staff, requiring a minimum monthly salary of SAR 7,000 per Saudi employee as per Saudi Gazette.

2. Dentistry

• 45% Saudization from July 27, rising to 55% in mid-2026
  
  
• Applies to facilities with three or more dentists, with an entry threshold salary of SAR 9,000 per month for quota counting.
  
  
  

3. Technical Engineering

• 30% Saudization required in establishments with five or more technical engineers, effective July 27, 2025
  
  
• Minimum salary requirement: SAR 5,000 per month.
  
  
  

Healthcare professions (Earlier phase)

• As of April 17, 2025, Saudization rates for four health professions were enforced:
  
  
  • Radiology: 65%
    
    
  • Medical lab: 70%
    
    
  • Therapeutic nutrition: 80%
    
    
  • Physiotherapy: 80%
    

These apply initially in major cities, expanding nationwide by October 17. Minimum wages: SAR 7,000 for specialists, SAR 5,000 for technicians.

Implementation mechanisms & support

• MHRSD has released procedural guides and compliance instructions on its official website to clarify employer obligations, quota calculations, and penalties.
  
  
• Independent supervisory agencies oversee sector compliance:
  
  
  • Ministry of Health for pharmacy & dentistry
    
    
  • Ministry of Municipal Affairs & Housing for engineering roles.
    
    
• Eligible companies can utilize Human Resources Development Fund (HADAF) programs for recruitment, training, and retention of Saudi talent.
  
  
  

Why this matters

• Accelerates Saudi employment: Focuses localization on strategic, skilled roles that historically relied on foreign workers.
  
  
• Supports Vision 2030 goals: Saudization policies are key to reducing unemployment, increasing national workforce participation and diversifying the economy.
  
  
• Incentivises compliance: Penalties for non-adherence are balanced by support programs to ease transition.
  
  
  

Saudi Arabia’s updated Saudization targets signify a decisive step toward greater national workforce engagement in high-value sectors. With quotas now enforced in pharmacy, dentistry, engineering, and healthcare, employers must restructure recruitment practices quickly and strategically. Backed by Vision 2030 and supported by HRSD through practical guidance and financial incentives, these measures are poised to reshape private-sector employment while maintaining regulatory compliance and market competitiveness.

FAQ

• 1. When do these changes take effect?

Pharmacy, dentistry, and engineering quotas begin July 27, 2025, with dental quotas rising further in 2026. Healthcare professions launched earlier on April 17, 2025,expanding nationwide by October.

• 2. Which sectors are impacted?

269 roles across pharmacy, dentistry, medical laboratories, physiotherapy, therapeutic nutrition, accounting, and technical engineering.

• 3. What penalties exist for non-compliance?

Firms can face Fines and non-renewal of licenses, enforced by HRSD and partner ministries.

• 4. Are there salary thresholds for inclusion?

Yes, roles must meet minimum monthly salary levels (SAR 7,000–9,000) to count toward Saudization quotas.

• 5. How does this tie into national strategy?

Saudization is central to Vision 2030, aimed at reducing unemployment (now at ~7.1%, below original 8% target) and expanding Saudi private-sector participation.