Saudi Arabia: Expanding Procurement Localisation by 70%
Saudi Arabia has approved a 70% localisation of procurement jobs within the private sector, in an effort to strengthen national talent and increase the region's economics.
The new policy, which was decided on in November 2025, aims to strengthen long-term workforce participation in business-critical functions, for firms with three or more employees.
The Ministry of Human Resources and Social Development has approved the localisation within the private sector, marking a step for expanded employment opportunities.
Localisation in procurement
The move for localisation comes as part of Saudi Arabia's wider vision of boosting the Kingdom's economic standing and supply chain operations. The region has been emphasising 'Saudi Vision 2030' - a government programme which is working towards an increased economic, social and cultural diversification. It is dedicated to supporting businesses of all sizes in order to help them grow and progress.
The nationalisation efforts are aimed at encouraging more citizens to participate in private-sector roles, particularly ones which are central to corporate operations and supply chains. With ongoing supply chain turbulence around the world in recent years, many countries and businesses are putting a focus on localisation and nationalisation strategies.
Procurement is a big part of cost management, supplier strategy and operational continuity - particularly during times of disruption - so procurement functions are a key focus within localisation. As businesses scale and diversify, they need to ensure their procurement teams make informed supplier decisions to maintain operational efficiency.
"The Public Investment Fund believes that the private sector is the most important strategic permanent partner that plays a crucial role in our success," explains His Royal Highness, Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, Chairman of the Council of Economic and Development Affairs, Chairman of the Public Investment Fund.
"The cooperation continues to develop and activate roles, enabling the private sector and uncovering investment opportunities. We aim to increase local content in PIF giga-projects and its portfolio companies to 60%.”
Supporting Vision 2030
The private-sector establishments must meet a 70% localisation requirement for procurement roles, under the new guidance. According to the ministry, this will provide high-quality and motivating job opportunities for Saudi Arabia's citizens, increase how much contribution the national talent is providing to the public sector and enhancing the competitiveness of the workforce.
Saudi Vision 2030 is built on creating a thriving society with strong social infrastructure, a strong economy and efficiency and accountability. It is about making a more resourceful, sustainable and economically strong Kingdom, welcoming new innovations, partnerships and initiatives.
“PIF seeks to support private sector investment opportunities and create partnerships to contribute to the Kingdom’s economic development," adds His Excellency, Yasir Bin Othman Al-Rumayyan, Governor of the Public Investment Fund.
"The Fund has developed important strategic partnerships with the private sector through major projects, infrastructure projects and others, to enhance important sectors such as housing, hospitality, tourism and entertainment.”
The implementation of the new 70% localisation strategy will be supported by a range of programmes which companies can turn to. The programmes will be able to help in regards to recruitment, onboarding, employee retention, access to training, access to qualification programmes, wage support and initiatives to promote professional stability.
Resources are being made readily available in order to ensure the localisation scheme can work long-term, with help from the Ministry of Human Resources and Social Development.
