KSA, September 2020
The Ministry of Human Resources and Social Development (MHRSD) issued a Ministerial Decision no. 686 dated 01/01/1442H (corresponding to 20 August 2020) (Ministerial Decision) requiring all private sector establishments operating in the Saudi market to employ at least 20% Saudi nationals in engineering professionals where the total number of engineers is five or more. This does not apply to entities who employ four foreign national engineers or less.
Engineers are required to obtain professional accreditation from the Saudi Council of Engineers, in accordance with the provisions of the Professional Engineers Law and Implementing Regulations. Non-accredited Saudi national engineers will not count towards the entity's Saudization ratio. Also, for Saudi engineers to be included in the entity's Saudization ratio, their the monthly wage, as recorded with the General Organization for Social Insurance shall not be less than SAR 7,000. Saudi engineers earning less than that shall not be counted towards the Saudization ratio.
The MHRSD issued a Procedural Guide to the Nationalization of Engineering Professions which summarized the Ministerial Decision, sets out the method of calculating the required nationalization rates for an entity and lists the precise engineering titles the Ministerial Decision applies to. To the extent that an entity does not comply with the Ministerial Decision, all electronic transactions for engineering professions (issuing visas, transferring services, changing professions, work permits) will automatically be suspended for such non-complaint entity.