Project Management Saudization to Reach 70% in 2027

Saudi Arabia will raise the localization rate in project management professions in the private sector to 70%, effective 14 February 2027. The decision was issued by the Ministry of Human Resources and Social Development in cooperation with the Ministry of Municipal, Rural Affairs and Housing.

The 70% requirement applies at the establishment level to all private-sector companies employing three or more workers in the targeted professions. These are: Project Management Manager or Director, Project Management Engineer, and Project Management Specialist.

The new mandate is an upgrade from an earlier two-phase plan that set project management Saudization at 35% in the first phase and 40% in the second, with a minimum wage of SAR 6,000 for localized roles. A grace and transition period of six months applies before full enforcement, counted from the implementation announcement date.

How the rate is calculated

Establishments calculate their localization rate by dividing the number of Saudi employees in project management professions by the total number of employees in those professions, then multiplying by 100. Companies must also ensure their registered job titles match the Saudi Standard Classification.

Firms that fail to meet the required percentage after the grace period will be treated as non-compliant with Saudization rules and may face labor-market penalties and potential service restrictions through the Ministry's electronic platforms. As of August 2026, no extra Saudization fees in SAR are specified for this decision beyond the existing general fines framework; the main obligation is achieving the required percentage.

Compliance and monitoring are handled through the Ministry's labor and Saudization e-services, including workforce data, Nitaqat tracking, and occupational classification. The move continues national efforts to expand Saudi employment in skilled professions across the private sector.

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