Recently, Saudi Arabia has witnessed an unprecedented shift in its economic strategies. One pivotal aspect of this transformation has been the ambitious Saudization program, an initiative aimed at recruiting Saudi nationals across various sectors. The most recent announcement from the Ministry of Human Resources and Social Development (MHRSD) about expanding Saudization to new professions and activities heralds a future of immense opportunities for the nation’s young population.
Expansion of Saudization to New Sectors :
In this paragraph, The Saudization movement has broadened its scope to include industries including project management, purchasing, and sales, as well as businesses offering services for freight brokerage and shipping activities, and shops for home furnishings and women’s clothing. This broadening of the Saudization initiative signifies a strategic move to diversify the economy and cultivate a culture of self-reliance, thereby raising the participation of Saudis in the labour market.
Saudization in Postal Activities and Medical Appliances Sector:
April 1, 2023, marked the start of the second phase of the Saudization of postal activities and the medical appliances sector. The localization of the medical appliances sector includes the Saudization of sales, advertising, and promotion of medical appliances and supplies by 80 per cent and the localization of engineering and technical professions for medical appliances by 50 per cent.
Saudization in the Sales and Logistics Sector:
Firstly, Saudization’s extension into the sales and logistics sectors marks another key milestone in the initiative. The sales sector, where 15 per cent of jobs have been localized, plays a pivotal role in any economy, driving business growth, ensuring customer satisfaction, and fueling market competition. Roles such as sales manager, internal sales and customer services manager, patent specialist, marketing sales expert, and commercial specialist are now under Saudization’s umbrella, providing Saudi nationals with a wide array of career paths to explore and excel in.
Women’s Empowerment Through Saudization:
Recognizing the importance of gender diversity in the workplace and the untapped potential of Saudi women, Saudization has made empowering women a central tenet of its strategy. The initiative mandates total Saudization in administrative roles within women’s decoration and sewing services outlets.
This strategy breaks away from traditional gender roles and stereotypes, encouraging women’s active participation in the workforce. It offers an opportunity for Saudi women to advance in their careers, acquire new skills, and contribute to the economy. The decision to appoint at least one Saudi female worker in technical professions in outlets where there are ten or more female workers furthers the cause of gender equality, ensuring that women are given the platform to thrive and excel in technical fields traditionally dominated by men. The move is not only a significant step towards women’s empowerment but also a testament to the country’s commitment to leveraging all of its human resources for national development.
Incentives and Support from the MHRSD:
The Saudization drive provides support to private sector establishments in the form of incentives. It encourages hiring Saudis and offers a range of Saudization support programs. The Human Resources Development Fund (HADAF) aids these establishments through support and employment programs, ensuring a smooth transition.
The Ministry of Human Resources and Social Development (MHRSD) has begun implementing Saudization in consulting firms, previously exempt from such requirements. The first phase aims for 35% of consulting industry positions to be filled by Saudi nationals, with no specified deadline.
Saudi Arabia and Iraq discussed establishing a Special Economic Zone along their shared borders during the Saudi-Iraqi Coordination Council meeting on May 25, 2023.
Investors in these zones may receive incentives from the Human Resources Development Fund (HADAF) for hiring Saudi citizens, part of a comprehensive package to support zone growth. The zones attract international companies and have different Saudization rules to ensure competitiveness.
Two main factors make the Saudi national count in the talent pool limited. On the one hand, many Saudis prefer to work in the public sector, as they perceive higher salaries and more stable jobs there. In addition, the second limiting factor is the government-mandated requirement to hire Saudi nationals to be able to do business in the first place. This drives up demand as it reduces the number of job-searching or unemployed Saudis in the country. To know about different avenues available to recruit Saudi talent, read our article here.
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