Issued by the Saudi Ministry of Human Resources and Social Development (MHRSD) in collaboration with the Ministry of Tourism, Ministerial Resolution No. 137440 introduces significant changes in the workforce landscape within Saudi Arabia’s tourism sector. This new regulation aims to boost job opportunities for Saudi nationals, ensuring a stable and productive workforce in a promising industry, while providing a detailed procedural guide to assist employers in adapting to these changes.
Scope and Objectives
- The regulation applies to all private sector businesses licensed by the Ministry of Tourism.
- Aims to increase Saudi workforce participation in tourism, aligning Saudisation ratios with market demand.
Targeted Professions and Saudisation Percentages
Phase 1 – Effective 22 April 2026
- Table 1 – 100% Saudisation: Positions like front-desk staff and call centre operators must be exclusively filled by Saudis.
- Table 2 – 70% Saudisation: Strategic roles including tour guides and hotel managers require at least 70% Saudi staffing.
- Table 3 – 50% Saudisation: Positions such as ticket sellers and restaurant hosts must have a minimum of 50% Saudi nationals.
Phase 2 – Effective 1 March 2027
- Table 4 – 30% Saudisation: Chef positions must have at least 30% Saudi representation.
Phase 3 – Effective 1 January 2028
- Table 5 – 50% Saudisation: High-level managerial roles must have at least 50% Saudi nationals.
Implementation Mechanism
- Employers need to calculate Saudisation rates per occupation based on their total employee numbers.
- A grace period is provided before penalties for non-compliance apply.
Support Programs for Employers
- Recruitment and job matching for sourcing Saudi candidates.
- Training and development support with financial aid for upskilling.
- Employment incentives such as subsidies and priority access to initiatives.
Penalties for Non-Compliance
Strict penalties are in place for employers who fail to meet the Saudisation quotas, ensuring compliance is maintained. Non-Saudi assignments to roles meant for Saudis can lead to fines, and outsourcing jobs does not absolve employers of responsibility.
Common Clarifications
- The Saudisation policy applies to actual job functions as well as titles.
- Enforcement is independent of each establishment’s Nitaqat classification.
- Minimum wage requirements apply to specific roles.
- Outsourced roles must still comply with Saudisation rules, with employers remaining accountable.
Why should I read this?
If you’re in the tourism sector in Saudi Arabia, you can’t afford to miss this article! It breaks down the essential Saudisation requirements that you’ll need to tackle head-on. With timelines and comprehensive guidelines, you’ll have everything you need to ensure compliance and avoid those pesky penalties. It’s all about building a stronger, local workforce, and this guide puts you on the right track!