Navigating Saudisation in Saudi Arabia’s tourism sector: A practical guide for employers

Issued by the Saudi Ministry of Human Resources and Social Development (MHRSD) in collaboration with the Ministry of Tourism, Ministerial Resolution No. 137440 dated 23/10/1446H (21 April 2025) introduces a significant shift in the workforce landscape: the Saudisation of tourism professions. The goal is clear—boost stable, productive job opportunities for Saudi nationals in one of the Kingdom’s most promising sectors. To support implementation, the government released a comprehensive procedural guide detailing the scope, timelines, targeted roles, enforcement mechanisms, and employer support available.

The following article provides a structured breakdown to help your organisation understand and prepare for these changes.

1. Scope and objectives

• The regulation applies to all private sector businesses operating under licenses issued by the Ministry of Tourism.
• It seeks to increase Saudi workforce participation, aligning Saudisation ratios with both market demand and the output of tourism-related academic disciplines.

2. Targeted professions and Saudisation percentages

Phase 1 – Effective 22 April 2026

Covers the following three occupational tables with staggered ratios:

Table 1 – 100% Saudisation
The resolution mandates 100% localisation of specific front-desk and administrative roles, meaning these positions must be filled exclusively by Saudi nationals. This applies to essential customer service and communication functions such as switchboard / call centre operator, hotel receptionist, receptionist, and information clerk. These roles serve as the first point of contact for guests and clients, making them critical to shaping the image and service standards of the tourism sector. The full localisation of these positions reflects the government’s commitment to empowering Saudi talent in prominent, client-facing roles while promoting a more nationally representative tourism workforce. Employers must ensure full compliance with this requirement by the April 2026 deadline.

Table 2 – 70% Saudisation
The resolution mandates that at least 70% of the roles listed in Table 2 must be occupied by Saudi nationals. These positions are considered strategic to the operational and representational functions of the tourism industry. They include roles such as tour guide, branch manager, hotel control specialist, hotel monitoring manager, public relations (PR) specialist, procurement specialist, and tour guidance specialist. By localising these roles, the aim is to enhance Saudi representation in leadership, quality control and visitor engagement, while also promoting local talent as ambassadors of Saudi tourism. Employers must ensure they are on track to meet the 70% threshold by April 2026, using this transition period to build a skilled, nationalised workforce in these critical areas.

Table 3 – 50% Saudisation
At least 50% of the roles listed in Table 3 must be held by Saudi nationals. These roles are integral to the day-to-day operations and customer-facing functions within the tourism sector. Positions such as ticket seller, hospitality specialist, event coordinator, restaurant host, and sales representative are targeted to ensure that Saudi citizens have a strong presence in service and support areas that directly impact guest experience. Employers must assess their current workforce composition in these roles and begin transitioning or hiring accordingly to meet the required quota by the implementation deadline.

Phase 2 – Effective 1 March 2027

Phase 2, which comes into effect on 1 March 2027, introduces Saudisation requirements for specialised culinary roles as follows:

Table 4 – 30% Saudisation
At least 30% of chef positions listed under Table 4 must be filled by Saudi nationals. This phase aims to cultivate local expertise in high-skilled, hospitality-driven professions such as gastronomy, encouraging the development of homegrown talent in kitchens across the Kingdom’s expanding tourism and hospitality landscape.

Phase 3 – Effective 1 January 2028

Table 5 – 50% Saudisation of high-level managerial roles
Phase 3, marks a pivotal turning point in the Saudisation of the tourism sector by mandating that at least 50% of senior management positions listed in Table 5 must be filled by Saudi nationals by 1 January 2028. This includes critical leadership roles such as hotel operations manager, hotel manager, marketing manager, restaurant manager, project management director, travel agency manager, sales director, and food & beverage (F&B) manager.

The introduction of this 50% Saudisation threshold at the general manager and director level is a significant regulatory shift that will have far-reaching operational and structural implications for tourism establishments. These roles are not just high-ranking, they are decision-making positions that shape business strategy, guest experience, brand identity, and financial performance.
Employers must now prepare for a fundamental change in leadership composition, ensuring that Saudi nationals are not only present in support roles but actively leading teams, making commercial decisions, and representing the business at the highest level. This requirement sends a clear signal that the Kingdom expects its national workforce to play a visible and influential role in the governance and strategic direction of the tourism industry.

This will require employers to take early and strategic action to identify, recruit, and develop Saudi talent with the leadership capabilities, sector knowledge, and commercial acumen to thrive in these roles. Succession planning, internal development programs, and partnerships with local training institutions will become critical tools for compliance.

Failure to meet this 50% target could significantly impact an establishment’s ability to operate and grow in the Saudi market. This makes executive-level Saudisation not just a compliance issue but a business continuity imperative. Tourism businesses must act now to review their leadership pipeline and develop a clear roadmap to ensure a strong and sustainable Saudi presence at the top.

3. Implementation mechanism

• Employers must calculate Saudisation rates by occupation based on total employee numbers in each role, using clear formulas included in the guide.
• A grace period is provided for each phase before penalties apply.

Grace periods at a glance:

4. Support programs for employers

To facilitate compliance, MHRSD offers several support mechanisms:

• Recruitment & job matching: Support with sourcing Saudi candidates.
• Training & development: Financial and logistical aid for upskilling.
• Employment incentives: Subsidies and priority access to employment initiatives.

5. Penalties for non-compliance

Penalties for non-compliance are clearly outlined in the Saudisation framework to ensure strict adherence. Employers who fail to meet the required Saudisation quotas may face fines and other sanctions, particularly if they assign non-Saudis to roles designated for Saudi nationals - even if those roles are masked under alternative job titles. Importantly, outsourcing does not exempt employers from responsibility. If a localised role is contracted out to a third party, the primary employer remains accountable. All workers performing such roles must be properly registered through official platforms such as Ajeer, ensuring full transparency and regulatory compliance.

6. Common clarifications

The resolution addresses key points of interpretation for employers, including the following: 

• Application: The Saudisation policy applies not only to the official job title but also to the actual duties performed by the employee, ensuring that localisation is implemented in both form and substance.
• Nitaqat independence: Enforcement is unaffected by the establishment's Nitaqat classification, meaning even companies in higher Nitaqat tiers are not exempt.
• Minimum wages: Minimum wage requirements apply to specific roles—for example, marketing specialists must receive a minimum monthly salary of SAR 5,500.
• Outsourcing: Outsourcing does not absolve employers of responsibility; subcontracted roles must still comply with Saudisation rules, and the primary employer remains accountable for ensuring all obligations are met.

Quick compliance checklist

To help employers navigate the Saudisation requirements efficiently, the following quick compliance checklist outlines the essential steps needed to ensure alignment with the tourism sector localisation strategy. Whether you're preparing for an upcoming phase or reassessing current workforce composition, this practical guide can support your HR and compliance teams in achieving timely and effective implementation. Steps that should be taken ahead of the deadlines are: 

• Identify which Saudisation phase applies to your organisation
• Map internal roles to the targeted job titles in Tables 1–5
• Calculate Saudisation percentages per role
• Begin recruiting or transitioning staff to meet quota
• Leverage MHRSD support programs
• Ensure all workers, including outsourced, are properly registered (e.g., via Ajeer)
• Avoid relabelling localised roles to bypass quotas
• Monitor for future policy updates or role expansions.

With the tourism sector playing a critical role in Saudi Arabia’s Vision 2030, the introduction of Saudisation across operational and executive layers, including the pivotal General Manager position, will redefine talent strategies in the Kingdom. Early planning is key. Employers who act now will be best positioned to comply with the law, avoid disruption, and contribute meaningfully to the Kingdom’s economic transformation.