Procedural Guide to Saudizing Grocery Stores and Supermarkets

Purpose and scope

• A procedural guide from the Ministry of Human Resources and Social Development explaining the decision restricting jobs in grocery store and supermarket outlets to Saudis: targeted activities and jobs, percentages, calculation, start dates and penalties.
• It applies in all regions of the Kingdom and binds every outlet in the targeted activity, whether a stand-alone shop or inside a mall.

Key rules, rights and obligations

• Phase one: 100% Saudization of cashier, checkout supervisor and customer service jobs, and 50% for section supervisors.
• Phase two: 100% for section supervisors, and 50% of all staff in section manager, assistant branch manager and branch manager jobs.
• Results are rounded: below one half rounds down to zero, and one half or more rounds up to one.
• The decision does not conflict with Nitaqat percentages and applies whatever the establishment's Nitaqat band.
• The Saudi worker at the outlet may be full-time, part-time or on an hourly flexible contract registered on the flexible work platform.
• According to the guide's FAQ, grocery shops under 300 square metres are not covered at this stage.

Violations, penalties and common problems

• Non-compliance is recorded as a violation of Labour Law Article 36 under the schedule of violations and penalties issued by Ministerial Decision No. 178743 dated 27/9/1440H, as amended.
• The decision applies both to the activity name in the national classification of economic activities and to the actual activity, so changing the activity name is not enough.

Procedures and key deadlines

• Phase one took effect on 25/2/1443H after a 180-day grace period, and phase two on 25/8/1443H after 360 days from publication.
• Inspections start on the effective date of each phase.
• Support programmes cover recruitment, training and employment, including those of the Human Resources Development Fund (HADAF).

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.