As of June 2023, the Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has announced the Saudization of a number of professions in Madinah at a percentage ranging from 40% to 100%.
It coincides with the release of the Ministry's procedural guide for the decision to localize a number of professions and economic activities in the Madina region, in an effort to increase Saudi national participation in the local labor force.
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
* Complexes and
* Closed commercial areas.
According to the Ministry, the percentage will be applied to the above services with four or more workers in one shift.
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.
Exceptions include some exceptional professions. If there are two or more workers in a shift in the workplace, this percentage will apply.
Saudization of 50% will also be applicable on workers in the
* Wholesale activity of food and beverages
It excludes some exceptional professions such as cleaning workers and freight and unloading workers. Per shift, the total number of workers in the sales outlet must not exceed 20%.
If there are fewer than 3 workers in one shift, then one more worker must be included in one of the excluded professions.
Cafeterias, catering contractors, caterers, canteens and cafeterias in factories, offices, hospitals, schools, restaurants and cafes inside hotels, apartments, and hotel villas are excluded from Saudization in restaurants and cafes.
In addition, the HR Ministry reported a 40% Saudization of the marketing and sales professions.
- 100% Saudization percentage on accounting fund workers, excluding exceptional activities such as car maintenance, fuel filling, cylinder gas, workshops, restaurants, cafes, including nurseries, with the exception of sales outlets with a floor area smaller than 300 square mts
The Ministry of Human Resources and Social Development confirmed that the decision will apply to all private sector companies operating in the Madina region.
In cases where different percentages of Saudization were targeted in previous decisions, the higher rate will be preferred.
According to the Ministry's guide, several factors must be considered when applying Saudization decisions to activities and professions. According to the Nitaqat program, the Saudization percentages in the other orders cannot conflict with the Saudization percentages in this order.
The Ministry of Human Resources has granted 180 days of correction period in the activities and professions targeted by Saudization, starting on 7th Jumada Al-Thani 1444 AH, and the percentage will be imposed from 20th Dhu Al-Hijjah 1444 AH.
- The Ministry also stipulated the penalties stipulated in the guide, as well as severe penalties, which will be applied to companies that do not comply with the Saudization percentages after the correction period expires.
According to the MHRSD's guide, workers from excluded professions must comply with the uniform. On the back of the uniform, the worker's profession must be written.
In order to count Saudi citizens in the Saudization percentage, they must be registered in the company's insurance, hold a flexible work contract, or be self-employed.
SOURCE : SAUDI EXPATRIATES
