The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has announced the Saudization of a number of professions in Madinah with a percentage ranging from 40% to 100%, starting from this Dhu Al-Hijjah month, or June 2023.
Several Professions in Madinah to be Localized
This came in line with release of the procedural guide from the Ministry for the decision to localize a number of professions and economic activities in the Madina region, which aims to raise the participation of Saudi nationals in the local labor market.
Excluding some exceptional professions, the 40% Saudization in Madina target will apply to the workers of
- Restaurants with service
- Banquet kitchens
- Fast food shops
- Stand-alone or mixed-use buildings
- Closed commercial areas
The Ministry clarified that percentage will be applicable on the above services with 4 or more workers in one shift inside the place.
The Saudization of activities with 50% including the workers in
- Who serve drinks in cafes
- Ice cream stores in stand-alone or mixed buildings
- Malls and closed commercial centers.
Excluding some exceptional professions. This percentage will be applied in case there are 2 workers or more in one shift inside the place.
Saudization of 50% will also be applicable on workers in the
- Wholesale activity of food and beverages
Excluding some exceptional professions like cleaning worker, freight and unloading worker. The total percentage of workers must not be more than 20% in the sales outlet per shift.
In case there are less than 3 workers in one shift, then one more worker must be included in one of the excluded professions, while following the uniform.
The activities that excluded in the Saudization in restaurants and cafes are, Cafeterias, catering contractors, caterers, canteens and cafeterias in factories, offices, hospitals, schools, restaurants and cafes inside hotels, apartments and hotel villas.
The HR Ministry also said the Saudization in the professions of Marketing specialist and Sales representatives by 40%.
100% Saudization percentage on accounting fund workers, excluding the exceptional activities like car maintenance, fuel filling, cylinder gas, all kinds of workshops, restaurants, cafes, including to the nurseries with the exception of sales outlets whose area is less than 300 sq. meters.
The Ministry of Human Resources and Social Development guide confirmed that the decision will be applicable in all private sector companies operating in Madina region, as per the professions and activities codes specified for them.
In case, the professions or activities were targeted in the previous decisions at different percentages, then the higher rate of Saudization from the decision will be preferred.
The guide of the Ministry added several matters that must be taken in account while applying the decision of Saudization in activities and professions. It is important for the decision to not to conflict with the Saudization percentages in the other orders which will be applied on the total number of workers in the company as per the Nitaqat program.
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The Ministry of Human Resources has granted 180 days of correction period in the activities and professions targeted by Saudization, starting from the date 7th Jumada Al-Thani 1444 AH and the percentage will be imposed from 20th Dhu Al-Hijjah 1444 AH.
The Ministry also specified the penalties stipulated in the guide, in addition to severe penalties, which will be applied after the expiry of the correction period to all companies that do not comply with the Saudization percentages.
The MHRSD’s guide highlighted the importance of complying with the uniform for the men and women workers of excluded professions. Worker profession must be written on the back of uniform.
In order to count the Saudi citizens in the Saudization percentage, it is must that they need to be registered in the insurance of the company account, or that they be in a documented flexible work contract or hold a self-employment document.