What Localisation Means for Saudi Arabia's Supply Chain

In a strategic decision to bolster its national supply chain capabilities, Saudi Arabia has approved a 70% localisation of procurement jobs within the private sector. The policy, decided on in November 2025, applies to all firms with a staff of three or more in their procurement departments.

This initiative is part of a wider effort to strengthen long-term workforce participation in business-critical functions and improve supply chain resilience across the Kingdom.

The Ministry of Human Resources and Social Development approved the new mandate, marking a major step toward expanding employment opportunities for Saudi nationals in vital operational roles. By localising procurement, the nation aims to enhance its economic standing and fortify its supply chain against global turbulence.

Building supply chain resilience

This focus on localisation is a key component of Saudi Vision 2030, a government programme designed to foster economic, social, and cultural diversification. Amid ongoing supply chain disruptions worldwide, many countries are turning to nationalisation strategies to secure their operations.

Procurement is fundamental to this, as it governs cost management, supplier strategy and operational continuity. Effective procurement teams are essential for making informed supplier decisions that maintain efficiency, especially as businesses scale and diversify their operations.

This decision suggests a concerted effort to build a more robust domestic supply chain ecosystem less reliant on expatriate labour in critical purchasing and logistics roles.

"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%.”

Enhancing procurement and national talent

Under the new guidance, private-sector establishments must meet the 70% localisation threshold for all procurement-related positions. According to the ministry, this will create high-quality job opportunities for the nation's citizens. The policy is also intended to increase the contribution of national talent to the private sector and enhance the overall competitiveness of the Saudi workforce. This is a core pillar of Saudi Vision 2030, which is built on creating a thriving society supported by a strong economy and efficient governance.

The programme aims to build a more resourceful, sustainable and economically powerful Kingdom by welcoming new innovations, partnerships and initiatives from the private sector.

Strategic partnerships and implementation

The successful implementation of the localisation mandate will be supported by a range of programmes available to companies. These initiatives are designed to assist with recruitment, onboarding, employee retention and professional development, ensuring that businesses can find and cultivate the right talent. The government is also providing access to training, qualification programmes and wage support to facilitate a smooth transition.

"PIF seeks to support private sector investment opportunities and create partnerships to contribute to the Kingdom’s economic development," says His Excellency Yasir bin Othman Al-Rumayyan, Governor of the Public Investment Fund.

"The Fund develops 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.”

To ensure the long-term success of the localisation scheme, the Ministry of Human Resources and Social Development is making resources readily available to all affected companies. This support framework is designed to help businesses adapt to the new requirements while promoting professional stability and growth within the national workforce.