Saudi, UAE double down on talent nationalization

Saudi Arabia and the UAE are doubling down on their talent nationalization drives, with each issuing directives earlier this week to expand programs designed to increase the number of nationals employed by the private sector.

In Saudi Arabia, the Human Resources Ministry expanded its 100% Saudization mandate to cover 69 job types. The decree, which went into effect on Sunday, applies to every private sector entity operating in the Kingdom that employs one or more workers in these targeted roles. Businesses subject to the decree are now required to immediately audit their front-line staff and have until 4 October to restructure (and localize) middle management and specialist roles.

Which jobs are being impacted? Let’s just say you’re going to see fewer Egyptian HR managers and institutional development managers, less Lebanese and Egyptian talent in public relations, and fewer Indian recruitment specialists. Looking for a general administrative assistant? Bank on hiring a Saudi. .

The cost mitigation strategy: Replacing expatriate back-office staff with Saudi nationals will likely trigger an immediate wage premium, making the Human Resources Development Fund (Hadaf) a critical pressure valve for some companies. Hadaf — which poured SAR 8.3 bn into private-sector wage subsidies and training in 2025 — will subsidize a portion of new Saudi hires' salaries for up to two years. We expect the April mandate to trigger an inflow of new applications, with SMEs already making up 94% of the fund’s beneficiaries last year.

MEANWHILE- The UAE is extending its Nafis Emiratization program through 2040 to expand support for Emirati talent and competitiveness in the private sector. Under the new program updates, women working in the private sector — whether Emiratis or women married to Emirati nationals — will be eligible for a new financial support program. The financial support will also be expanded to an unlimited number of these women’s children (after initially being capped at four), with the allowance per child increased to AED 800, from AED 600 previously.

Background: Launched in 2021, the Nafis program is aimed at increasing the number of Emiratis employed in the private sector, with the goal of having 75k highly-trained Emiratis fill up 10% of positions in private firms across the country by 2026. Since its launch, the number of Emirati nationals working in the private sector climbed by 325% as of last August.