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Project Management Saudization: 70% Rule From 14 February 2027

By Ishta Handa, HR Researcher & Leadership AuthorLast fact-checked 9 October 2026Announced
Project Management Saudization: 70% Rule From 14 February 2027: StrongYes Saudization Hub
Quick answer

From 14 February 2027, private-sector establishments in Saudi Arabia that employ three or more people in project management professions must fill 70% of those roles with Saudi nationals. The rule, set by Ministerial Decision No. 41454 of the Ministry of Human Resources and Social Development (MHRSD), covers three occupations: Project Management Manager, Project Management Engineer and Project Management Specialist. It is measured separately from an establishment's Nitaqat band.

At a glance

Saudization rate70%
Applies to3+ workers in the 3 targeted professions (entity level)
Covered occupations121314 Project Management Manager
214909 Project Management Engineer
242108 Project Management Specialist
Salary floor for a Saudi to countNone stated in the decision
DecisionMinisterial Decision No. 41454, 13 August 2026
القرار الوزاري رقم 41454
Announced16 August 2026
Grace period6 months
Effective14 February 2027
StatusAnnounced
Last fact-checked9 October 2026

What is the Saudization rate for project management jobs in 2027?

The rate is 70%, effective 14 February 2027 under Ministerial Decision No. 41454. It applies to establishments with three or more workers in the three covered occupations. The rates database shows how it compares with procurement at 70% and engineering at 30%, and the calendar lists the dates around it.

Which professions does the rule cover?

MHRSD's procedural guide lists three occupations, identified by their codes in the Saudi classification of occupations. Coverage follows the occupation registered for each employee, so check the code on file rather than the job title used internally.

Occupation codeOccupationCovered
121314Project Management ManagerYes
214909Project Management EngineerYes
242108Project Management SpecialistYes

Program, portfolio or delivery roles registered under other codes are not named in the decision. If a role's registered occupation does not match the work the person actually does, that mismatch is itself a compliance risk.

Which employers must comply?

The rule applies to private-sector establishments that employ three or more workers in the three targeted professions combined. The headcount that triggers the rule is the number of people in those three roles, not your total workforce.

The guide applies the rate at entity level: you count everyone in the covered professions across the entity, then apply 70% to that total. An entity with two project managers in Riyadh and two in Jeddah has four people in scope and must meet the rule.

How do you calculate the 70% requirement?

The method in MHRSD's guide is simple:

Saudis required = employees in the covered professions x 70%, rounded to the nearest whole number.

The guide's own example is an establishment with five employees in the covered roles: 5 x 70% = 3.5, which rounds to 4 Saudi employees. Here is the same calculation for other team sizes:

Employees in covered roles70% of headcountSaudis requiredMaximum non-Saudis
32.121
42.831
53.541
64.242
85.662
107.073
1510.5114
2014.0146

These are totals after hiring, not hires to add. The table shows the Saudi share of the whole covered team. If you keep your existing non-Saudi staff and hire Saudis on top, the team grows and so does the requirement. For example, a team of 5 non-Saudis needs 11 Saudi hires to reach 70% if nobody leaves (11 of 16), not 4. Plan replacements and additions separately.

Small teams feel the rounding most. At five people, the requirement is effectively 80% Saudi, because 3.5 rounds up to 4.

The procedural guide does not set a minimum salary for a Saudi employee to count toward this rate. Your Saudi employees' salaries still matter for your separate Nitaqat percentage, where pay below SAR 4,000 counts as half and pay below SAR 3,000 does not count.

What MHRSD says

  • 70% localization in three project management occupations (121314, 214909, 242108).
  • Applies to establishments with three or more workers in those roles, calculated at entity level.
  • Effective 14 February 2027 under Ministerial Decision No. 41454 of 13 August 2026.
  • Nitaqat classification does not affect the calculation.

StrongYes analysis

  • Rounding makes small teams the hardest hit: a five-person PMO needs four Saudis.
  • Large projects compete for the same pool of experienced Saudi project managers, so early hiring and internal development will matter more than late recruitment.
  • The most common risk is likely to be occupation codes that do not match actual duties, rather than the headline rate.

How does this rule relate to Nitaqat?

They are two separate tests, and you have to pass both.

  • Nitaqat rates your whole entity into a band (Platinum, High Green, Medium Green, Low Green or Red) based on your overall share of Saudi employees, your economic activity and your size.
  • The project management rule looks only at the three covered occupations and requires 70% of them to be Saudi.

MHRSD's guide is explicit that the establishment's Nitaqat classification does not affect the calculation of the localization rate. A Platinum entity with a non-compliant PMO is still in breach of the project management decision. Our employer guide explains how the two tests interact. The Saudization certificate page explains what the certificate is and who gets one, and the Nitaqat overview covers the bands.

Key dates

DateEvent
13 August 2026Ministerial Decision No. 41454 issued
16 August 2026MHRSD announces the 70% rate and publishes the procedural guide
14 February 2027Rule takes effect after a six-month grace period

See every upcoming effective date in the Saudization calendar.

What happens if an establishment does not comply?

MHRSD states that penalties for breaching the decision follow its Schedules of Violations and Penalties, issued under Ministerial Decision No. 112377 dated 21/08/1447 AH. The ministry's inspection teams monitor compliance with localization decisions after they take effect. Our guide to Saudization penalties and inspections covers how enforcement works across decisions.

What should employers do before 14 February 2027?

  1. List everyone registered under codes 121314, 214909 and 242108 across the entity, including all branches.
  2. Check registered occupations against actual duties. Correct genuine errors through the proper process; do not reclassify roles to avoid the rule.
  3. Calculate your requirement with the rounding rule above, and the gap between today's Saudi headcount and the number required.
  4. Plan the gap. Decide which roles you will fill through hiring, internal promotion or development, and by when.
  5. Use available support. MHRSD points employers to recruitment assistance, training support, employment support and priority access to localization support programs; see Saudization support programs.
  6. Keep contracts documented on Qiwa, so that your Saudi employees are recorded correctly for both this rule and Nitaqat.

The 90-day Saudization readiness checklist turns these steps into a plan you can hand to HR.

What does the rule mean for Saudi professionals?

Every covered establishment with three or more people in these roles now needs at least 70% of them to be Saudi. That raises demand for Saudi project managers, project management engineers and project management specialists, particularly people who can step into roles currently held by non-Saudis.

The decision does not set qualifications, but employers typically look for recognized project management credentials and delivery experience. Our project management careers guide covers skills, certifications and routes in for graduates and career switchers. The rule increases demand; it does not guarantee any individual a job.

What does the rule mean for expat project managers?

The rule does not ban non-Saudis from project management. It caps their share of the three covered occupations at what remains after the 70% Saudi requirement, for example up to three of ten roles. Establishments with fewer than three people in the covered roles are outside the decision, as are roles registered under other occupation codes. Our planning guide for expat project managers sets out the options factually.

What support is available?

MHRSD's guide lists support for employers implementing the decision: recruitment assistance, training support, employment support, and priority access to all localization support programs. Much of this is delivered through the Human Resources Development Fund (Hadaf). See Saudization support programs for how to apply.

Frequently asked questions

01What is the Saudization rate for project management jobs in 2027?

The Saudization rate for project management jobs is 70%, effective 14 February 2027 under MHRSD Ministerial Decision No. 41454. It applies to private-sector establishments with three or more workers in three project management occupations. Required Saudis equal covered headcount multiplied by 70%, rounded to the nearest whole number.

02When does the 70% project management Saudization rule start?

It takes effect on 14 February 2027, at the end of a six-month grace period that followed Ministerial Decision No. 41454 of 13 August 2026. MHRSD announced the decision on 16 August 2026.

03Which job titles are covered by the project management rule?

Three occupations under the Saudi classification of occupations: Project Management Manager (121314), Project Management Engineer (214909) and Project Management Specialist (242108). Coverage follows the registered occupation code, not an informal job title.

04Does the rule apply to companies with only one or two project managers?

No. It applies to private-sector establishments that employ three or more workers across the three targeted project management professions. Below three, the decision does not apply.

05Is there a minimum salary for a Saudi project manager to count?

The procedural guide does not name a minimum salary for this decision. That is different from engineering, where a Saudi must earn at least SAR 8,000 to count, and marketing, where the floor is SAR 5,500.

06Does a Platinum or High Green Nitaqat band exempt us?

No. MHRSD's procedural guide states that the establishment's Nitaqat classification does not affect the calculation of the localization rate. The 70% rule is a separate test.

07What are the penalties for missing the 70% rate?

MHRSD applies the penalties in its Schedules of Violations and Penalties issued under Ministerial Decision No. 112377 dated 21/08/1447 AH. The ministry's inspection teams monitor compliance with localization decisions.

08Can expats still work in project management roles after February 2027?

Yes, within the remaining share. In an establishment with ten employees in the three covered roles, seven must be Saudi and up to three can be non-Saudi. Roles registered under other occupation codes are outside this decision.

09What is the project management Saudization rule?

From 14 February 2027, private-sector establishments employing three or more people in project management professions must fill 70% of those roles with Saudi nationals. It covers Project Management Manager (121314), Project Management Engineer (214909) and Project Management Specialist (242108), under Ministerial Decision No. 41454.

10How is a profession Saudization rate calculated?

Multiply the number of employees in the targeted professions by the required rate and round to the nearest whole number. MHRSD's project management guide gives the example of 5 employees x 70% = 3.5, which rounds to 4 Saudi employees.

Sources

  1. MHRSD: 70% Saudization rate for project management professions. Ministry of Human Resources and Social Development, 16 August 2026.
  2. MHRSD: Procedural Guide on the Decision to Localize Project Management Professions (PDF). Ministry of Human Resources and Social Development, 2026-09.

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.