Saudi Arabia has officially started enforcing the 30% Saudization requirement in engineering professions across the private sector. The new rule took effect on 30 June 2026 and is part of the Kingdom’s ongoing efforts to increase employment opportunities for Saudi nationals under its workforce localization program.
For expatriate engineers and private companies, this update brings important compliance requirements, including localization targets, salary conditions for Saudi employees, and professional accreditation rules.
The regulation requires qualifying private-sector employers to ensure that at least 30% of positions in covered engineering professions are filled by Saudi nationals.
Government inspection teams have already started monitoring companies to verify compliance with the new rules.
Which Companies Are Affected?
The decision applies to:
Private-sector companies operating in Saudi Arabia
Businesses employing five or more workers in the engineering professions covered by the regulation
Employers across industries where the listed engineering roles exist
Companies with fewer than five employees in the covered engineering occupations may not fall under this specific requirement, although other Saudization regulations could still apply depending on their business activity.
Which Engineering Professions Are Covered?
The regulation applies to 46 engineering professions listed under the Saudi Standard Classification of Occupations.
Some of the covered professions include:
Architectural Engineer
Civil Engineer
Mechanical Engineer
Electrical Engineer
Electronics Engineer
Industrial Engineer
Chemical Engineer
Power Generation Engineer
Vehicle Engineer
Marine Engineer
Sanitary Engineer
Environmental Engineer
Construction Engineer
Telecommunications Engineer
Manufacturing Engineer
Other engineering specialties included in the official occupational classification are also subject to the localization requirement.
Minimum Salary Requirement
One important condition is the salary threshold for Saudi employees.
To be counted toward the required 30% Saudization quota, a Saudi engineer must receive a minimum monthly salary of SAR 8,000.
This salary requirement helps ensure that localization creates meaningful and sustainable employment rather than low-paying positions created only to meet compliance targets.
Professional Accreditation Is Mandatory
Another key requirement involves professional licensing.
Engineers working in the covered professions must obtain valid professional accreditation from the Saudi Council of Engineers (SCE).
Without proper registration and accreditation, an engineer may not meet the professional requirements applicable to these occupations.
Both Saudi nationals and expatriate engineers should ensure their SCE membership and professional classification remain valid where required.
What Does This Mean for Expat Engineers?
The announcement does not mean that expatriate engineers will automatically lose their jobs.
However, expatriates should understand that:
Companies must now maintain the required Saudization percentage.
Employers may gradually increase hiring of Saudi engineers.
Demand may become stronger for expatriates with specialized skills or extensive experience.
Maintaining valid professional accreditation and strong performance remains important.
Highly skilled engineers with expertise in specialized technical fields are often still needed, especially where local talent shortages exist.
What Should Private Companies Do?
Companies affected by the regulation should take several practical steps to remain compliant.
1. Review Current Workforce
Identify how many employees work in the engineering professions covered by the regulation.
2. Calculate the Saudization Percentage
Determine whether the organization currently meets the required 30% localization rate.
3. Verify Salary Compliance
Ensure Saudi engineers counted toward the quota receive at least SAR 8,000 per month.
4. Check Professional Accreditation
Confirm that engineers requiring professional classification have valid registration with the Saudi Council of Engineers.
5. Prepare for Inspections
Maintain updated employment records and supporting documentation in case government inspectors request verification.
Compliance Monitoring Has Started
Authorities have confirmed that inspection teams are already visiting businesses to verify compliance.
During inspections, officials may review:
Employee records
Occupational classifications
Saudization percentages
Salary information
Professional accreditation documents
Companies should ensure their employment records accurately reflect employees’ actual job roles.
Possible Penalties for Non-Compliance
Businesses that fail to meet the required Saudization rate after any applicable grace period may face statutory penalties.
Potential consequences could include:
Financial penalties
Administrative sanctions
Restrictions related to labor services
Increased regulatory scrutiny
Employers are encouraged to comply as early as possible rather than waiting for enforcement actions.
Why Is Saudi Arabia Increasing Saudization?
The policy supports Saudi Arabia’s long-term workforce strategy by:
Creating more employment opportunities for Saudi citizens
Increasing local participation in skilled professions
Developing national engineering talent
Supporting sustainable private-sector employment
Reducing reliance on foreign labor in selected occupations
The engineering sector is one of several industries where localization targets have gradually increased in recent years.
Summary of the New Engineering Saudization Rule
Requirement
Details
Effective date
30 June 2026
Saudization rate
30%
Applies to
Private-sector companies employing five or more covered engineering workers
Covered professions
46 engineering occupations
Minimum Saudi salary
SAR 8,000 per month
Professional accreditation
Required through the Saudi Council of Engineers where applicable
Enforcement
Government inspections have already begun
Practical Tips for Expat Engineers
If you currently work as an engineer in Saudi Arabia:
Keep your Saudi Council of Engineers registration active.
Maintain updated employment and qualification documents.
Continue developing specialized technical skills and certifications.
Stay informed about future Saudization announcements affecting your profession.
Discuss workforce planning with your employer if your role falls under the covered occupations.
Frequently Asked Questions
Does the new rule ban expatriate engineers?
No. The regulation does not prohibit companies from employing expatriate engineers. It requires eligible employers to maintain a 30% Saudization rate in the covered engineering professions.
When did the new Saudization requirement start?
The rule officially came into effect on 30 June 2026.
Which companies must comply?
Private-sector establishments employing five or more workers in the engineering professions covered by the regulation.
What is the minimum salary for Saudi engineers under this rule?
Saudi engineers counted toward the Saudization quota must receive a minimum monthly salary of SAR 8,000.
Is Saudi Council of Engineers registration required?
Yes. Engineers working in the covered professions must hold valid professional accreditation from the Saudi Council of Engineers where required.
Will inspections take place?
Yes. Government inspection teams have already begun monitoring businesses to ensure compliance with the new engineering Saudization requirements.
Final Thoughts
The enforcement of the 30% Saudization requirement in engineering professions marks another significant step in Saudi Arabia’s workforce localization strategy. While the policy primarily affects private-sector employers, expatriate engineers should also understand how it may influence hiring trends and career opportunities.
Companies should review their workforce, verify compliance with localization targets, ensure salary requirements are met, and confirm professional accreditation for engineers. Staying compliant will help businesses avoid penalties while supporting the Kingdom’s long-term employment goals.
