Saudi Arabia issues 2 decisions on the Saudization of Consulting Sector Professions and Businesses

Saudi Ministry of Labor
Saudi Ministry of Labor

The Minister of Human Resources and Social Development (MHRSD) in Saudi Arabia, Eng. Ahmed bin Sulaiman Al-Rajhi issued a decision to localize 35% of consulting professions and businesses as of 6th April 2023 (15th Ramadan 1444 AH) in the first phase.

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The percentage will increase to 40% in the second phase, which starts from 25th March 2024 (15th Ramadan 1445 AH). The decision is expected to provide more job opportunities to Saudi male and female citizens, targeting all the professions in the sector, especially,

  • Financial Advisory Specialist
  • Business Advisory Specialist
  • Project Management Engineer
  • Project Management Manager
  • Project Management Specialist
  • Cyber Security Advisory Specialist

The Finance Minister Muhammad Al-Jaddan issued ministerial decisions to modify the brochure model of terms and specifications (consulting services) and obey consulting companies to the percentage of Saudization specified by the Ministry of Human Resources and Social Development in government services and procurement.

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These 2 decisions come within the line of joint efforts to localize the consulting and business sector, in which 5 government agencies participated, represented by MHRSD, Ministry of Finance, the Local content and Government Procurement Authority, Spending Efficiency and Governmental Projects Authority, Human Resources Development Fund (HADAF), with the aim of enhancing the presence of human cadres in the sector and increasing the percentage of Saudization in consulting professions and businesses, which will contribute to the development of local content in this strategic sector.

The Spending Efficiency and Governmental Projects Authority explained that the issuance of the Minister of Finance’s decision on 6th October 2022, included several objectives whose impact extends to the public and private sectors.

This decision is a reflection of the concerted and harmonious efforts of government departments by obligating the contractors with the Saudization decisions for the Consultancy sector issued by the concerned authorities and its inclusion in obligating the contractors to limit the appointment of Saudi national to the work team, whose practical and professional experience does not exceed the number of years specified by the competent authorities.

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In addition, an item in the name of training and knowledge transfer to train workers of government agencies to make optimal use of contracts with experienced and qualified contractors. This step is considered a contribution to providing an appropriate and stimulating work environment for Saudi nationals and expanding their participation in the Saudi Labor Market.

The MHRSD in cooperation with HADAF will provide packages of incentives and support to support private sector companies in employing Saudi citizens, supporting the wages of national workers by up to 50%, supporting mobility, moving allowance from one city to another, and training job seekers, with the Local Content and Government Procurement Authority will follow up the commitment to include localization requirements in advisory contracts.

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