As Saudi Arabia sets forth on a path to enhance job opportunities for its citizens, the localization plan for consultancy professions and businesses emerges as a pivotal initiative. This strategic effort is designed to increase the presence of Saudi professionals in the business consultancy sector, fostering a more competitive and self-reliant economy.

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The Localization Mandate

In October 2022, the Kingdom’s Ministry of Human Resources and Social Development announced that by the end of March 2024, 40 percent of workers in consultancy firms must be Saudi nationals. This mandate targets all professions within the sector, including financial advisory specialists, business advisers, cybersecurity advisory specialists, project management managers, engineers, and specialists.

This targeted localization, or Saudization, involves the Ministry of Human Resources and Social Development collaborating with the Ministry of Finance, Local Content and Government Procurement Authority, Expenditure and Project Efficiency Authority, and Human Resources Development Fund. The goal is to increase the presence of Saudi professionals, develop local content, and better organize the labor market.

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Supporting Private Sector Establishments

The ministry is committed to assisting private sector establishments by supporting the training and qualification of employees, as well as aiding employment procedures and other initiatives. Similarly, the Local Content and Government Procurement Authority is tasked with ensuring adherence to Saudization requirements in consulting contracts. It has issued a guide detailing the process of localizing the consultancy sector and the professions within it.

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Reshaping the Consultancy Sector

Azeem Zainulbhai, co-founder and chief product officer at Outsized, believes Saudization will retain more money in the Kingdom despite higher training costs. “It reduces reliance on foreign experts in key fields like finance, project management, and cybersecurity, creating well-paying jobs for Saudis and ensuring they're well-trained,” he told Arab News.

Bashar El-Jawhari, consulting partner at PwC Middle East, noted that the localization plan is reshaping the consulting sector. “The second phase will bring key transformations, empowering local talent and helping businesses better navigate local market dynamics and regulations,” El-Jawhari told Arab News.

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Sectors to be Affected

The localization initiative extends beyond the consultancy sector, noted Zainulbhai. “Tourism and hospitality can benefit greatly from local insights to attract more visitors and celebrate Saudi culture. Major construction and engineering projects, like NEOM and the Red Sea Project, will also gain from having local experts who understand specific requirements and standards,” he said. Additionally, the healthcare, IT, cybersecurity, and renewable energy sectors are set to improve with local consultants who possess a deep understanding of regional needs and regulations.

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Potential Opportunities

The plan represents a significant opportunity for Saudi Arabia to boost local employment and reduce reliance on foreign workers, aligning seamlessly with the broader Vision 2030 goals. “By having more Saudis in consulting, businesses can better navigate local market dynamics and regulations,” Zainulbhai added. Local consultants can provide insights that make companies more competitive, particularly in sectors where understanding local consumer behavior is crucial.

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Potential Challenges

While the benefits are clear, the plan also introduces several challenges. According to Zainulbhai, these include filling talent gaps, adapting to cultural shifts, and meeting new regulatory standards. “To address these, businesses could establish mentorship programs where experienced international consultants train emerging Saudi professionals. Creating special training centers to rapidly upskill workers could also be beneficial,” the co-founder explained.

From PwC’s perspective, El-Jawhari highlighted that the availability of fresh, well-educated Saudi graduates offers consulting firms access to junior talent. However, retaining them beyond the first 4 to 5 years can be challenging, as government and semi-government entities often recruit these nationals who have gained experience in international consulting firms.

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Vision 2030 Implications

This localization plan is a crucial component of the broader Vision 2030 initiative, which aims to diversify the economy beyond oil and enhance public services such as health and education. “By increasing Saudi involvement in consulting, the plan helps retain more wealth within the country and creates high-value jobs that are vital for modernizing the economy,” Zainulbhai stated. The focus on upgrading the skills of the Saudi workforce is essential for fostering innovation and ensuring sustained economic growth.

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Final Words

Saudi Arabia's localization plan for the consultancy sector represents a significant step toward achieving Vision 2030. By increasing the participation of Saudi professionals in the business consultancy sector, the Kingdom aims to build a more self-reliant and dynamic economy. Despite the challenges, the potential benefits for Saudi nationals and the broader economy are substantial, paving the way for a vibrant, knowledge-based society.

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