HRSD Ministry issues procedural guide for localization in malls, restaurants, central supplies

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The Ministry of Human Resources and Social Development (HRSD) issued the procedural guide for the ministerial decisions on localization in closed commercial complexes and malls, and increasing it in restaurants, cafes and supermarkets.

According to the guide, the first decision will come into force on Aug. 4, 2021 - 120 days after the issuance date.

In case of a discrepancy in the localization rates in the related ministerial decrees for the activities, higher Saudization rates will apply.

With regards to the decision on increasing the number of Saudi workers in supermarkets, restaurants and cafes, it will be effective on Oct. 2, 2021, after 180 days of the issuance date.

The decision on increasing Saudization rates in major central supplies will come into effect in two phases - the first one after a grace period of 180 days and the second will be on March 28, 2022.

The decision will not include supply markets spanning less than 300 square meters, and it will be applied on all employees inside an entity, regardless of the Nitaqat range.

In the guide, the ministry unveiled all the relevant details regarding the implementation of the decision in all its phases, including the grace period, the time period for implementing the decision, the activities targeted for Saudization, and the percentage of exemptions. The ministerial decisions to Saudize a number of activities and professions in the labor market aimed to create 51,000 jobs for Saudis.

Penalties will be issued to commercial establishments that violate the new decisions across the Kingdom.