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      The Ministry of Human Resources and Social Development, in partnership with the Ministry of Health, announced the implementation of the second phase of higher Saudization (localization) rates for four key healthcare professions in the private sector, effective from 17 October 2025.1

      The launch of the second phase of Saudization for key health professions is intended to be a pivotal step in strengthening Saudi Arabia’s healthcare workforce and advancing its Vision 2030 goals.

      WHY THIS MATTERS

      This development could substantially affect private sector healthcare employers, especially those with significant numbers of expatriate professionals in therapeutic nutrition, physiotherapy, medical laboratories, and radiology.

      Globally mobile employees and international hires in these fields may experience reduced opportunities or stricter eligibility requirements, while organizations may face increased administrative costs and complexities in meeting regulatory standards.

      This initiative may also open new career pathways for Saudi nationals, foster national talent development, and support the broader transformation of the healthcare sector into a more resilient and locally empowered system.

      Context

      Saudi Arabia has progressively increased localization rates for healthcare professions as part of its labor market strategy and Health Sector Transformation Program. The first phase of the initiative applied to major cities and large/giant facilities starting on 17 April 2025. The second phase now extends these requirements to all private sector healthcare facilities across Saudi Arabia.

      Key Highlights

      Affected Professions and Localization Rates

      • The localization rate for radiology professions has been set at 65 percent.

      • For medical laboratories, the required localization rate is 70 percent.

      • Both therapeutic nutrition and physiotherapy professions must meet a localization rate of 80 percent.

      Minimum Wage Requirements

      • The minimum monthly wage for specialists is SAR 7,000.

      • The minimum monthly wage for technicians is SAR 5,000.

      Compliance and Enforcement

      • Procedural guide published by the Ministry of Human Resources and Social Development.

      • Regulatory penalties for non-compliance.

      Support for Private Sector

      Employers can access recruitment, training, and employment support programs via the Human Resources Development Fund (HADAF).

      KPMG INSIGHTS

      Considerations for Organizations

      Organizations may wish to audit their current workforce against the new Saudization and wage requirements, develop transition plans for affected roles, and engage with available government support programs for recruitment and training of Saudi professionals. Also, payroll systems could be updated to adhere to the mandated wage levels.

      If assignees and/or their programme managers have any questions or concerns about the scope of the directive, its application and potential impacts, and appropriate next steps, they should consult with their qualified tax or social security professional or a member of the GMS/People Services team with KPMG in the Lower Gulf (see the Contacts section).

      FOOTNOTE:

      1  “Implement second phase of healthcare saudization in four healthcare professions,” Saudi Press Agency, published on 17 October 2025.

      Other Resources:

      Also see “Saudi Arabia raises localization rates in four health professions,” Saudi Press Agency, published on 17 October 2025.

      Also see “The Ministry, in partnership with the Ministry of Health, announces the issuance of a decision to increase the localization rates,” Ministry of Human Resources and Social Development, Kingdom of Saudi Arabia, published on 20 October 2024.

      Contacts

      Samar Abdelrahman
      Samar Abdelrahman

      Associate Director

      KPMG in the United Arab Emirates

      Pranav Shah
      Pranav Shah

      Director

      KPMG in the United Arab Emirates

      More Information

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      The information contained in this newsletter was submitted by the KPMG International member firm in Saudi Arabia.

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