30% Saudization in the Accounting profession

The Ministry of Labor has imposed a minimum of 30% Saudization in the accounting profession in Saudi Arabia. The decision has been taken to promote local and educated talent. 

Saudization in the Accounting Profession

The decision of 30% Saudization in the accounting profession aims to create around 9,800 jobs for locals in Saudi Arabia.

1 – All private companies would be required to maintain at least a 30% Saudization level in accounting, finance, and auditing jobs.

2 –  Only those Saudi accountants/auditors who are registered with the SOCPA would be counted for Saudization.

3 – The decision will be implemented from 1/11/1442 corresponding to June 11, 2021.

4 – The 30% Saudization in the accounting profession is only implemented in those companies where more than 5 accountants are employed.

5 – The minimum monthly salary for a Saudi accountant/auditor would not be less than SR 6,000 for bachelor’s holders and SR 4,500 for diploma holders to be counted in Saudization calculation.

19 Accounting Professions to be Saudized

All the professions which are required to be registered with SOCPA would be Saudized gradually.

  1. Accounts Manager.
  2. Director of General Auditing Department.
  3. Cost clerk.
  4. Internal Auditor.
  5. Finance clerk.
  6. General Accountant.
  7. Director of Zakat and Taxes Department.
  8. Manager, accounts, and budget
  9. Senior Financial Auditor.
  10. Director G.A of reviewing.
  11. Director, financial, and accounting affairs.
  12. Auditor accounts.
  13. Accounts auditing technician.
  14. Director of Financial Reports Department.
  15. General Accounts technician.
  16. Chief of internal auditing programs.
  17. Financial Auditing Supervisor.
  18. Cost accounting technician.
  19. Financial Controller.

Mechanism of calculating Saudization

The mechanism of calculating Saudization in the accounting profession is explained below;

  • Total accountants in a company (20 Expats + 2 Saudis): 22.
  • Saudization Rate (22 x 30%) : 6.6 rounded to 7.
  • New Saudi accountants to be hired during the grace period: 7 – 2 = 5.

What if the Saudization requirement is not met?

If the 30% required Saudization requirement in the accounting profession is not met by June 11, 2021, the following consequences will have to be faced;

  1. Employees with the accounting profession would not be able to change Iqama profession.
  2. No transfer of sponsorship to the company.
  3. No transfer of sponsorship from the company.
  4. No renewal of work permit for any employee.
  5. No new visas.

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