Legal Profession Saudization: Rules for Law Firms and Legal Roles

Legal Saudization is set by Ministerial Decision No. 212607 of the Ministry of Human Resources and Social Development (MHRSD), dated 5 July 2021. Companies, law firms and legal consultancy offices must fill 70% of four legal consultancy occupations with Saudis: 50% applied from 30 December 2021 and 70% from 20 December 2022. A Saudi counts only at SAR 5,500 or more and with professional accreditation. Admission as a lawyer requires Saudi nationality, and foreign firms need a Ministry of Justice licence.
Legal Saudization works on two levels. MHRSD requires most legal consultancy staff at private employers to be Saudi, and the Code of Law Practice, run by the Ministry of Justice, limits practicing law to licensed Saudi lawyers, with a licensing route for foreign firms. This page keeps the two apart and gives the date and source for each rule.
What is the legal Saudization rule?
Legal Saudization is a 70% localization requirement for four legal consultancy occupations in the private sector. MHRSD Ministerial Decision No. 212607 is dated 24/11/1442 AH (5 July 2021). It was introduced in two phases after a six-month grace period: 50% from 26/05/1443 AH (30 December 2021) and 70% from 26/05/1444 AH (20 December 2022). MHRSD announced on 20 December 2022 that phase two applied nationwide.
We found no later amendment. Confirm the current status on Qiwa before planning around it.
| Layer | Who sets it | What it requires |
|---|---|---|
| Legal consultancy localization | MHRSD, Decision No. 212607 | 70% Saudis in four legal consultancy occupations; SAR 5,500 floor |
| Practice of law | Ministry of Justice, Code of Law Practice | Lawyers must be licensed, and admission requires Saudi nationality |
| Foreign law firms | Ministry of Justice, Royal Decree No. M/66 | Licence, then a joint venture or branch, with limits on Saudi-law work |
| Whole-company rating | MHRSD, Nitaqat | Overall Saudi share by band |
Which legal professions does it cover?
The decision names four occupations from the Saudi classification of occupations.
| Occupation | What the work involves |
|---|---|
| Legal consultant, general systems | Advises on public systems (general laws and regulations) |
| Legal consultant, special systems | Advises on private or specialized systems (laws and regulations) |
| Contracts specialist | Drafts, reviews and negotiates contracts |
| Legal affairs clerk | Administrative legal support: case files, filings and follow-up |
Press coverage of MHRSD's 2021 announcements also lists trained lawyers among the targeted roles. The procedural guide says roles restricted to Saudis, such as lawyer and trainee lawyer, count toward the quota. We do not print occupation codes, because we have not cross-checked them against the guide's Arabic tables.
Which employers must comply?
MHRSD says the decision covers "all companies, law firms and legal consultancy offices" that employ legal consultancy professionals. The guide sets no minimum headcount. The trigger is having people registered under the covered occupations, so a company with one legal consultant is not obviously outside it.
This matters for in-house teams. A bank, contractor or developer with a legal department is covered if its legal staff are registered under these occupations. Coverage follows the registered occupation and the real duties, not the department name.
How do you calculate the 70% requirement?
Saudis required = workers in the covered occupations x 70%, rounded to the nearest whole number. The guide's own example is seven workers at the phase-one rate: 7 x 50% = 3.5, which rounds to 4. The table applies the same method at 70%.
| Workers in covered roles | 70% of headcount | Saudis required | Maximum non-Saudis |
|---|---|---|---|
| 3 | 2.1 | 2 | 1 |
| 5 | 3.5 | 4 | 1 |
| 7 | 4.9 | 5 | 2 |
| 10 | 7.0 | 7 | 3 |
| 12 | 8.4 | 8 | 4 |
| 20 | 14.0 | 14 | 6 |
Only qualifying Saudis count. Two conditions apply, according to the guide, and both differ from the Nitaqat salary thresholds:
- Wage: the Saudi's wage registered with GOSI must be at least SAR 5,500 a month, stated for bachelor's degree holders. The guide does not name a different figure for other qualifications.
- Accreditation: workers in lawyer and legal consultancy roles must hold the professional accreditation required by the Law of Practice of Law. We have not confirmed how the guide applies this to in-house legal consultants, so check the guide text for your roles.
Where more than one decision targets the same profession, the guide says the higher rate applies. Contracts specialists can also appear in the procurement rule, where Contracts Manager is a covered title, so check which code each person is registered under.
What MHRSD says
- Legal consultancy professions are localized at 50% (from 30 December 2021) and 70% (from 20 December 2022).
- Covered: companies, law firms and legal consultancy offices employing the four covered occupations.
- A Saudi counts at SAR 5,500 or more for bachelor's holders.
- Non-compliance leads to the penalties set out in MHRSD's regulations.
Our analysis
- The 70% rate is only one constraint. Law practice itself already needs Saudi nationality, so firms meet localization at both ends of a career.
- In-house teams are the most likely to be surprised, because HR often files legal staff under general titles.
- The accreditation condition limits who counts, which makes a licensed trainee pipeline more valuable than late hiring.
Key dates
| Date | Event |
|---|---|
| 5 July 2021 | Decision No. 212607 issued (24/11/1442 AH) |
| 30 December 2021 | Phase one: 50% takes effect (26/05/1443 AH) |
| 15/7/1443 AH (February 2022) | Royal Decree No. M/66 amends the Code of Law Practice |
| 20 December 2022 | Phase two: 70% applies; MHRSD announces it nationwide |
| 5 March 2023 | First foreign law firm licences issued |
See the full list in the Saudization calendar.
Who can practice law in Saudi Arabia?
Under the Code of Law Practice, only licensed Saudi nationals can be admitted as lawyers. Non-Saudis can practice only under international agreements. The English text hosted by the Ministry of Justice sets these conditions:
| Condition | Requirement |
|---|---|
| Nationality | Saudi |
| Qualification | Sharia college degree, Saudi bachelor of law or recognized equivalent, or an Institute of Public Administration postgraduate legal diploma |
| Experience | 3 years of relevant legal experience; 1 year with a master's in Sharia or law; none with a doctorate |
| Conduct | Good conduct; no incapacity; no sentence for a crime against honor within five years |
| Residence | Resident in the Kingdom |
| Licence | Granted by the Minister of Justice after registration, valid for five years |
Only lawyers on the practicing list can plead for others before courts. Exceptions in the Code include a company's legal representative and relatives within a stated degree. The Saudi Bar Association, created by Council of Ministers decision in 2015, is the professional body for licensed Saudi lawyers. Check the current Arabic text of the Code before relying on any article.
What are the rules for foreign law firms?
A foreign firm may not practice in Saudi Arabia unless licensed by the Ministry of Justice. Royal Decree No. M/66 of 15/7/1443 AH added these rules to the Code, in an unofficial English translation hosted by the ministry:
- Eligibility: international reputation, at least 10 years of operation, and presence in at least three countries.
- People: two partners nominated to represent the firm, who commit to living in the Kingdom at least 180 days a year.
- Licence: five years, renewable.
- Form: a professional company with at least one registered Saudi lawyer, or one or more branches.
- Limits: in a professional company, pleading for others before judicial bodies is reserved for the Saudi lawyer. A branch is limited to international law, non-Saudi law and arbitration or similar work.
The Law Society and press reports describe implementing rules that set a Saudi share of at least 50% of a licensed firm's lawyers, with Saudi-law work kept in the Kingdom. The Code leaves the exact ratios to implementing regulations, so treat those figures as reported, not as verified from the regulation text.
What does it mean for in-house legal roles?
An in-house legal consultant or contracts specialist is covered if registered under the decision's occupations, whatever the employer's industry. In-house roles do not plead in court for third parties, so the Code's lawyer-licensing rules matter mainly to people who want to cross into private practice. The accreditation point above is the question to settle with the guide.
What happens if an establishment does not comply?
The guide describes administrative measures, including suspension of profession changes, service transfers and recruitment, and suspension of work permit renewal. It names no fine amounts. Assigning covered roles to non-Saudis under another title is treated as a breach, because the actual duties decide. See our penalties guide.
What should employers do?
- List everyone registered in the four occupations, including in-house teams. Our job title mapping guide shows how to reconcile titles.
- Check registered occupations against duties. Correct genuine errors; do not reclassify roles to avoid the rule.
- Record each Saudi's GOSI wage and accreditation status against SAR 5,500 and the Law of Practice requirements.
- Calculate the gap with the table above.
- Use support. See Saudization support programs, the rates database and the 90-day readiness checklist.
What does it mean for Saudi professionals and expats?
Saudi law graduates have a structured route: a training period under a licensed lawyer (three years for bachelor's holders), then a licence. Our legal careers guide sets out roles and pathways. For expat lawyers, the rule does not bar non-Saudis from legal consultancy; it caps their share at what remains after the 70%, for example three of ten. Practicing law before courts is a separate matter governed by the Code. See the expat guide for how to check a profession.
Frequently asked questions
01What is the Saudization rate for legal professions?
70% of legal consultancy workers at covered establishments, since the second phase began on 20 December 2022. Phase one required 50% from 30 December 2021. The rule sits in MHRSD Decision No. 212607 and we found no later change.
02Which legal jobs does the Saudization decision cover?
Four occupations: general systems legal consultant, special systems legal consultant, contracts specialist and legal affairs clerk. MHRSD's coverage applies to companies, law firms and legal consultancy offices that employ people in these roles.
03What salary must a Saudi lawyer or legal consultant earn to count?
SAR 5,500 a month for bachelor's degree holders, as registered with GOSI, according to MHRSD. A Saudi paid less is not counted toward the 70%. The guide also requires professional accreditation under the Law of Practice of Law for lawyer and consultancy roles.
04Can a foreigner practice law in Saudi Arabia?
Under the Code of Law Practice, admission as a lawyer requires Saudi nationality, with non-Saudis allowed only under international agreements. Licensed foreign firms may operate through a joint venture or a branch, but only a Saudi lawyer may plead for others before courts.
05Can foreign law firms operate in Saudi Arabia?
Yes, under a Ministry of Justice licence introduced by Royal Decree No. M/66 (15/7/1443 AH). The licence lasts five years. The first licences went to Clifford Chance, Herbert Smith Freehills and Latham & Watkins on 5 March 2023.
06How long does it take to qualify as a lawyer?
The Code requires three years of relevant legal experience for bachelor's holders, one year for a master's in Sharia or law, and none for doctorate holders. The Ministry of Justice trainee program mirrors this: three years for bachelor's holders, one for master's.
07Does the legal rule apply to in-house legal teams?
MHRSD says it covers companies, not only law firms, that employ legal consultancy professionals. Coverage follows the registered occupation. The guide we read sets no minimum headcount, so even a small in-house team can be in scope.
Sources
- MHRSD: Customer service decision starts and second phase of legal professions decision (20 December 2022). Ministry of Human Resources and Social Development.
- MHRSD: Localization decisions for technical engineering, legal, customs clearance and driving schools take effect (30 December 2021). Ministry of Human Resources and Social Development.
- MHRSD: Procedural guide, localization of legal consultancy professions (Decision No. 212607). Ministry of Human Resources and Social Development.
- Ministry of Justice: The Code of Law Practice (English text). Ministry of Justice.
- Ministry of Justice: Amendments to the Code of Law Practice (Royal Decree No. M/66). Ministry of Justice.
- Law Society of England and Wales: Changes to practising law in Saudi Arabia. The Law Society.
This page explains Saudi workforce localization rules for general information. It is not legal advice. Rules change, so confirm against the official MHRSD decision linked above and take advice from a qualified Saudi legal adviser before acting. StrongYes is an independent publication and is not affiliated with MHRSD, Qiwa or any Saudi government body. Full disclaimer.
