Saudi Arabia begins implementing a plan requiring 40% localization in accounting jobs within private firms with phased increases over five years.

In a significant move to boost local employment, Saudi Arabia has commenced the first phase of its initiative to localize accounting professions within the private sector. This new regulation mandates that 40 percent of accounting roles be filled by Saudis as of Monday, October 27.

The Ministry of Human Resources and Social Development, in collaboration with the Ministry of Commerce, stated that this directive targets firms employing five or more accountants. The decision establishes a minimum monthly wage: SAR 6,000 for individuals holding a bachelor's degree or its equivalent, and SAR 4,500 for those with a diploma. These measures aim to diversify job opportunities for Saudi citizens across various sectors throughout the Kingdom.

The policy encompasses an array of 44 accounting-related professions including financial manager, accounting manager, accounts and budget manager, treasury manager, certified public accountant, financial controller, and senior financial auditor. Over a span of five years and through five distinct phases, the localization rate is projected to gradually increase until reaching 70 percent.

The Ministry has disseminated a procedural guide on its website detailing the implementation process and compliance requirements. Businesses are urged to conform to these regulations to avoid facing penalties for non-compliance.

This initiative represents part of broader efforts to align with labor market demands by integrating more Saudi nationals into accounting roles. The Ministry of Commerce will oversee adherence to these guidelines while supporting companies through incentives related to hiring practices, training programs offered by the Human Resources Development Fund (HADAF), as well as recruitment and career advancement assistance.