This study identifies factors, which stimulate and develop diversity management competency within Saudi Arabia’s private sector. A quantitative exploratory approach is adopted here, in which 210 interviews were conducted with human resources management teams and employees in private Saudi enterprises across different sectors of activity: health, education, oil, and financial. The data collected was analyzed using AMOS 24. Based on the results, a research model was constructed in which three main determinants of diversity management competency were identified for the success of diversity management: leadership competencies (cognitive and communication); empowerment; and diversity training. The results show that there is complementarity between those factors, but that leadership diversity competencies are the most important, and especially the cognitive aspect. Added to this is diversity training, which affects diversity awareness and inclusiveness. It is concluded that factors related to the internal development of diversity management competency are cultivated and constructed. The research model can help managers in developing diversity management competencies to generate successful diversity management processes. Due to the limited literature on diversity management in general and for Saudi Arabia especially, this research enriches the existing literature. The model developed here can guide directors of multinationals based in Saudi Arabia and facilitate the implementation of diversity management for Saudi-owned companies who intend to adopt diversity management initiatives as a solution for development. This research is important for both theoretical and operational approaches, defining a critical aspect of diversity management through the definition and development of an interesting tool: diversity management competencies. The development of such competencies may be of benefit for organizations in more easily facing and managing diversity.