Saudi Arabia’s New Localization Mandate for Engineering Roles: What Employers Using EOR Services Need to Know

Saudi Arabia has recently introduced a mandatory localization (Saudization) requirement for engineering roles in the private sector. This update affects companies hiring foreign talent and emphasizes the importance of aligning workforce planning with local regulations.

For employers using an Employer of Record (EOR), understanding these changes is critical to ensure compliance and avoid penalties while continuing to hire efficiently in the Kingdom.

What the New Mandate Means

The new mandate introduces several key requirements for engineering roles in the private sector:

• 30% Saudization target for 46 designated engineering positions for companies with five or more employees in these roles.
• Minimum monthly salary of SAR 8,000 for Saudi engineers counted toward compliance.
• Accreditation from the Saudi Council of Engineers is required for Saudi nationals to qualify for the quota.
• Companies are given a six-month corrective period to adjust staffing and comply with the mandate.
• The directive also increases Saudization rates for certain procurement roles to 70% for employers with three or more employees in those positions.

These measures are part of Saudi Arabia’s broader goal to increase local employment in specialized and technical sectors, supporting Vision 2030 objectives.

Why This Matters for Employers Using an EOR

When you hire through an EOR like Tarmack, the EOR acts as the legal employer in Saudi Arabia. This means responsibilities such as:

• Tracking Saudization quotas and targets
• Ensuring Saudi hires meet accreditation requirements
• Aligning workforce plans with the new minimum salary thresholds
• Adjusting foreign employee hiring to maintain compliance

All of these responsibilities fall within the EOR’s scope of support.

Failing to meet the new requirements can result in regulatory penalties, delayed work permits, or restrictions on hiring foreign engineers.

Impact on Remote and International Teams

Even if a role is short-term, project-based, or part of a remote team, the localization mandate still applies if the employee is in a Saudi-based engineering position.

For employers, this means:

• Planning for earlier Saudi recruitment in engineering teams
• Ensuring accredited Saudi nationals are on board before expanding foreign hires
• Working closely with an EOR to track compliance timelines and quotas

How an EOR Can Help

A compliant EOR partner ensures:

• Proper quota management for Saudi nationals in engineering roles
• Verification of Saudi Council of Engineers accreditation
• Alignment of salary thresholds and employment contracts with regulatory requirements
• Reporting to local authorities as required
• Minimizing disruption to project timelines and workforce planning

By handling these compliance obligations, an EOR allows you to focus on business operations and team performance.

Final Thoughts

The new Saudi localization mandate for engineering roles is more than a procedural update. It has real operational impact. Employers must plan earlier, prioritize Saudi talent, and work with partners who understand local regulations.

With the right EOR, companies can continue hiring efficiently, meet compliance requirements, and build strong engineering teams in Saudi Arabia.

Need Support Navigating These Changes?

Tarmack provides Employer of Record Services in Saudi Arabia, helping companies:

• Manage Saudization quotas
• Hire accredited Saudi engineers
• Align employment contracts and salaries with regulations
• Stay compliant while focusing on business growth

Get in touch to understand how this mandate affects your workforce and to plan a smooth, compliant hiring strategy in Saudi Arabia.