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Saudi Arabia begins enforcement of higher localization rates in pharmacy, dentistry, and engineering sectors
Saudi Arabia begins enforcement of higher localization rates in pharmacy, dentistry, and engineering sectors

Zawya

time2 days ago

  • Business
  • Zawya

Saudi Arabia begins enforcement of higher localization rates in pharmacy, dentistry, and engineering sectors

RIYADH — The Ministry of Human Resources and Social Development (MHRSD) announced the implementation of updated Saudization targets in key professional sectors, starting Sunday, July 27, 2025. The move comes in collaboration with supervisory bodies including the Ministry of Health and the Ministry of Municipal and Rural Affairs and Housing. The updated Saudization plan targets pharmacy, dentistry, and technical engineering professions as part of ongoing efforts to expand the participation of Saudi nationals in the labor market and create productive employment opportunities across the Kingdom. In partnership with the Ministry of Health, the Saudization rate for pharmacy roles has been raised to 35% in community pharmacies and medical complexes, 65% in hospital pharmacy operations, and 55% in other pharmacy-related activities. This applies to establishments with five or more employees in pharmacy roles, with a minimum wage threshold of SR7,000 to count toward localization quotas. Dentistry jobs are now required to meet a 45% Saudization rate in the first phase, also effective today. The decision applies to facilities employing three or more dental professionals, with the minimum salary for inclusion in the quota set at SR9,000. Meanwhile, in coordination with the Ministry of Municipal and Rural Affairs and Housing, technical engineering professions must now meet a 30% Saudization target in establishments with five or more employees in these roles. A minimum monthly wage of SR5,000 has been set to qualify for localization compliance. The ministry said it has published procedural guides on its official website detailing the required quotas and application mechanisms, urging all establishments to comply in order to avoid penalties. The update continues the Kingdom's broader nationalization strategy within the private sector. While the Ministry of Health will oversee the implementation of Saudization in dental and pharmacy professions, the Ministry of Municipal and Rural Affairs and Housing will monitor compliance in technical engineering fields. Private sector entities will also benefit from support programs offered by the Human Resources and Social Development system, including recruitment incentives, training, job retention, and priority access to Saudization assistance through the Human Resources Development Fund (HRDF). © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (

Reimagining Saudi Arabia's future: creating new economies within
Reimagining Saudi Arabia's future: creating new economies within

Arab News

time11-07-2025

  • Business
  • Arab News

Reimagining Saudi Arabia's future: creating new economies within

Imagine waking up to cool, crisp air, surrounded by rolling green hills and stunning mountain views. Your morning commute is a short, traffic-free drive through scenic roads, and by the evening, you're enjoying dinner on a terrace with year-round comfortable weather. This starkly contrasts the congestion and high-rise density of a major metropolis. Imagine, on weekends, taking a two-hour drive to the beautiful shores of the Red Sea, hiking through the mountains, camping in the desert, or simply enjoying the serenity of Friday morning at a local cafe. For many in Saudi Arabia, this kind of lifestyle is often dismissed as unrealistic. The country's economic heartbeats — Riyadh, Jeddah, and Dammam — have become the primary hubs for jobs and business opportunities, making them the default choice for most professionals. But what if Saudi Arabia's smaller cities and towns — with stunning landscapes, cooler climates, and a balanced pace of life — became viable economic centers? The Future Saudi Cities Program is a collaborative initiative between the Ministry of Municipal and Rural Affairs and the UN Human Settlements Programme. It is part of the Kingdom's Vision 2030 and aims to guide urban transformation by enhancing the livability and sustainability of 17 cities across Saudi Arabia. One such city is Taif — historically known as a summer retreat for royals and elites because of its cooler temperatures and stunning landscapes, and its strategic location close to Makkah and Jeddah. Taif has the potential to be more than just a seasonal destination — it could be a thriving economic hub, attracting professionals looking for an alternative to big-city life. However, like many other secondary cities, it lacks the necessary infrastructure to support a modern workforce and economy. Most professionals and businesses gravitate toward Riyadh, Jeddah, or Dammam because that's where the opportunities exist. Before the announcement of Vision 2030, companies — whether local, regional, or international — prioritized establishing a presence in major cities. The need for proximity to government entities, regulatory and legislative bodies, reliable logistics infrastructure, modern office space, and access to essential services such as schools and health care facilities primarily drove this. However, with Vision 2030's emphasis on digital transformation and the widespread availability of e-services, the business environment has fundamentally evolved. Today, companies can access many government services remotely, reducing the necessity of being physically based in traditional urban centers. Instead of allowing this cycle to continue, why not encourage large corporations to establish offices and operations in smaller cities? What if Taif, Jazan, Hail, or Abha were considered touristic destinations and places where professionals could build their careers without sacrificing quality of life? If multinational and local companies were incentivized to move into these secondary cities — with tax cuts, subsidies, or access to government-backed contracts where applicable — it would trigger a chain reaction of economic and social transformation by creating new jobs and stimulating economic growth. The presence of these corporations in smaller cities would create high-paying jobs, reducing the need for local talent to relocate. With better salaries, residents would spend more locally, supporting small businesses and services. When new industries and professionals settle in these areas, they introduce different lifestyles, work ethics, and cultural perspectives. This shift can lead to greater entrepreneurial activity and a more diversified economy. In addition, unlike the rapid, often unsustainable urbanization seen in major cities, developing secondary urban centers allows for smarter, more environmentally friendly expansion. Just as Riyadh is emerging as a hub for corporate headquarters, secondary cities in Saudi Arabia are being strategically developed as specialized economic zones in alignment with Vision 2030 objectives. For instance, Taif is enhancing its tourism, hospitality, medical, and agribusiness sectors through initiatives like the New Taif project. Similarly, Jazan has been designated a special economic zone to attract international investors. In Tabuk, NEOM encompasses developments like The Line and Trojena. Abha is part of the Future Saudi Cities Program. The future of Saudi Arabia: a multi-city economic powerhouse. Vision 2030 aims to diversify the economy, but diversification should not only be sectoral — it should also be geographical. The opportunity is here — it's time to seize it.

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