Investment leader Samer Choucair said that Saudi Arabia’s decision to raise the Saudization rate for project management professions in the private sector to 70%, effective February 14, 2027, represents a step that goes beyond labor-market regulation to reshape the talent ecosystem supporting major project delivery. The move could influence corporate and investor decisions as well as capital allocation across construction, infrastructure, real estate, and consulting.
Choucair explained that the decision applies to private-sector establishments employing three or more workers in the targeted professions, including project management directors, project management engineers, and project management specialists. The initiative forms part of Saudi Arabia’s broader drive to localize specialized professions and increase the participation of national talent in line with the objectives of Saudi Vision 2030.
Choucair noted that removing the previous minimum salary requirement of SAR 6,000 for counting a Saudi employee toward the Saudization rate represents an important change in implementation. The Ministry of Human Resources had indicated that salaries in these professions had exceeded the previous threshold, making compensation requirements more flexible in line with labor-market conditions.
Choucair believes the new flexibility gives companies greater room to manage costs while increasing the importance of investment in training, professional development, and career pathways capable of producing qualified Saudi talent to manage complex projects. He emphasized that the success of the policy will not be measured solely by the Saudization rate, but by companies’ ability to turn local talent into a source of productivity and competitiveness.
He added that the investment impact will be particularly visible in construction, real estate development, infrastructure, energy, and professional services. These sectors are closely tied to the large number of projects currently being developed or executed across the Kingdom. The policy may encourage companies to restructure their teams, increase spending on training, and make greater use of technology solutions that improve the management of time, costs, and risks.
Choucair emphasized that institutional investors will view companies’ ability to absorb Saudization requirements as part of management quality and execution sustainability, particularly in sectors dependent on long-term projects.
“Companies that begin building a strong base of Saudi talent and developing their digital tools early will be better positioned to adapt to the new requirements,” Choucair said. “Companies that delay restructuring their human resources may face greater pressure once implementation begins.”
Samer Choucair concluded that the localization of project management professions reflects Saudi Arabia’s transition from localizing jobs to localizing expertise and leadership capabilities. Over the long term, this development could strengthen the Kingdom’s ability to execute major projects more efficiently and enhance its appeal to capital seeking markets with structural growth and increasingly clear regulatory frameworks.