Saudisation Drive Poised to Reshape Saudi Tourism Workforce

Saudi Arabia has announced a significant policy change requiring that by 2028, half of all positions in licensed tourism establishments be filled by Saudi nationals. This initiative aims to reduce the country's dependence on expatriate labor and align the workforce with the economic diversification objectives outlined in Vision 2030. The implementation of this framework will occur in phases, with the Saudisation ratio set to increase to 40 percent by April 2026, 45 percent by January 2027, and ultimately reach 50 percent by 2028. The new regulations will prohibit the outsourcing of jobs designated for localization to foreign entities and mandate that all tourism and hospitality venues employ a Saudi receptionist during operational hours. Non-compliance with these regulations will be subject to scrutiny and enforcement. Industry experts and recruitment agencies have characterized this goal as ambitious, noting that its successful realization will depend on the establishment of a strong talent pipeline rather than merely enforcing quotas. The chief executive of a prominent HR firm emphasized that without adequate training and retention strategies, the initiative's positive direction could yield fragile outcomes. Supporting this regulatory shift, the Ministry of Human Resources and Social Development, in collaboration with the Ministry of Tourism, has released a procedural guide outlining phased Saudisation targets across 41 tourism professions. Certain roles, including front-desk and reception positions, are expected to achieve full Saudi staffing as early as April 2026, while more technical and managerial roles will follow under less stringent quotas before the 2028 deadline. To facilitate this transition, employers will have access to various support measures, including recruitment assistance, training subsidies, and job matching services. The Ajeer platform will be the required channel for registering employment contracts, encompassing seconded, seasonal, or subcontracted workers. However, companies will retain responsibility for compliance, even when functions are outsourced, ensuring that all designated roles are filled appropriately. Despite these measures, employers express concerns about the challenges of attracting Saudi nationals to tourism positions, citing cultural perceptions and preferences for civil service roles that offer greater stability and benefits. Observers suggest that changing these attitudes will require a concerted effort to promote tourism careers as viable and respected options. In the meantime, expatriates are expected to continue occupying specialized and senior roles, particularly in new mega-projects such as Qiddiya, Diriyah, and NEOM’s Trojena, where local expertise remains limited. Businesses will also face increasing scrutiny regarding their hiring practices, as every non-Saudi recruit must be justified by demonstrating that national candidates were considered, with non-compliance potentially affecting licensing and incurring penalties. The expansion of Saudi tourism is underscored by the sector's growth, welcoming 116 million domestic and inbound visitors in 2024, a 6 percent increase from the previous year. Tourism spending reached approximately 284 billion riyals, reflecting robust momentum, while major infrastructure projects and airport expansions are being developed to accommodate anticipated growth.

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