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12 January 2026

Saudi Arabia announces increase in Saudization rates for roles in the engineering and procurement sectors

On 4 January 2026, the Ministry of Human Resources and Social Development (MHRSD) announced an increase in Saudization (localization) rates for roles in the engineering and procurement sectors. Saudization, also known as Nitaqat, is a policy by the MHRSD that mandates companies to employ Saudi nationals based on specific quotas, with the aim to create job opportunities for them in the private sector.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2026-0167

 

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