Saudi Ministry of Human Resources and Social Development Unveils Updated Guide for Localizing Operation and Maintenance Contracts

Riyadh, Saudi Arabia - The Ministry of Human Resources and Social Development has announced the launch of the second edition of the guide to localizing operation and maintenance contracts in public entities. The updated guide, instituted by Ministerial Resolution, closely follows a directive endorsed by the Cabinet's decision circulated through a telegram by the Chief of the Royal Court. This directive grants the Minister of Human Resources and Social Development the authority to refine and implement guidelines for the localization of these vital contracts.

The guide encompasses all service contracts with ongoing implications within public entities, including government tenders for operation and maintenance, city cleaning, road maintenance, IT operations, and subsistence contracts. The Ministry has enhanced these contract models to better integrate localization requirements.

Significant enhancements in the second edition of the guide include increased localization targets at various employment levels. These include raising the percentage of localization at the senior management level from 50% to an ambitious 100%, at the engineering and specialized level from 30% to 40%, and ensuring 100% localization at the supervisory level.

Additionally, the guide introduces refined performance measurement standards to assess the success and sustainability of these localization efforts, aligns job titles with the unified Saudi classification of professions, and defines scenarios that may contravene the set localization standards.

The initiative is part of the Ministry's broader strategy to unify and streamline the implementation of localization in operation and maintenance contracts across public sectors, thereby elevating contract efficiency and promoting sustained local employment. To support these objectives, the Ministry collaborates with various stakeholders through the Steering Committee for Localizing Operation and Maintenance Contracts.

This committee is chaired by Deputy Minister of Human Resources for Labor, Dr. Abdullah Abuthnain, and includes members from the Efficiency and Government Projects Authority, the Ministry of Finance, the Local Content and Government Procurement Authority, the Human Resources Development Fund (Hadaf), the General Organization for Technical and Vocational Training, and the Saudi Contractors Authority.

This proactive step by the Ministry of Human Resources and Social Development is expected to significantly impact enhancing the skills and employment opportunities for the Saudi workforce, aligning with the Kingdom's strategic objectives under its Vision 2030 program.