Saudi Arabia’s Localization Plan for Consultancy Sector to Boost Job Opportunities
Saudi Arabia is taking steps to enhance job opportunities for its citizens, with a focus on the localization plan for consultancy professions and businesses playing a crucial role in this endeavor.
Targeting Saudization in Consultancy Sector
In October 2022, the Ministry of Human Resources and Social Development in Saudi Arabia mandated that by the end of March 2024, 40 percent of workers in consultancy firms must be Saudi nationals. This decision applies to various professions in the sector, including financial advisory specialists, business advisers, and cybersecurity advisory specialists.
Collaboration for Sector Development
The Ministry of Human Resources and Social Development is working in cooperation with supervising bodies like the Ministry of Finance, the Local Content and Government Procurement Authority, and others to increase the presence of Saudi cadres in the consultancy sector. The collaboration aims to boost the percentage of Saudi workers in the sector and contribute to the development of local content.
Reshaping the Consultancy Sector
Azeem Zainulbhai, co-founder of talent-on-demand platform Outsized, believes that the Saudization rules in the sector will lead to more money staying within the Kingdom. This move aims to reduce reliance on foreign experts in fields like finance, project management, and cybersecurity, creating more job opportunities for Saudis in well-paying sectors.
Impact on Various Sectors
The localization plan extends beyond the consultancy sector, with industries like tourism, hospitality, construction, healthcare, IT, cybersecurity, and renewable energy set to benefit from the expertise of local consultants. This initiative is crucial for the diversification of the economy and the overall growth of key sectors.
Challenges and Opportunities
While the localization plan presents numerous opportunities for Saudi nationals to enter the consulting profession, it also brings challenges such as talent gaps and cultural adjustments. Businesses can overcome these challenges by setting up mentorship programs and focusing on upskilling workers to meet new regulatory standards.
Implications for Vision 2030
The localization plan aligns with the broader Vision 2030 goals of diversifying the economy and boosting public services. By increasing Saudi involvement in consulting, the plan aims to create high-value jobs, upgrade the skills of the Saudi workforce, and contribute to economic diversification.