Saudization: Transforming the National Workforce for Economic Prosperity
The Kingdom’s Saudization initiative is more than just a policy – it’s a transformative strategy aimed at reshaping the national workforce and boosting economic prosperity.
The Saudi Nationalization Scheme
Implemented by the Ministry of Labour in 2011, the Saudi Nationalization Scheme requires companies in Saudi Arabia to hire a set quota of their country’s citizens.
Nitaqat: Bridging the Employment Gap
The Nitaqat aspect of the initiative focuses on increasing the percentage of Saudi citizens working in the private sector to reduce the employment gap with the public sector.
Aligning With Vision 2030
The Saudization initiative aligns closely with the government’s Vision 2030, which aims to empower nationals and increase their participation in the private sector to reduce dependence on oil revenue and foster sustainable economic development.
Driving Labor Market Participation
Economist Talat Hafiz highlighted that Nitaqat is one of the most important programs enhancing participation in the labor market by providing job opportunities for Saudi nationals in a safe and attractive working environment.
Achieving Milestones
Since its launch in 2011, Nitaqat has significantly increased the number of Saudi nationals in the private sector workforce, with the latest figures showing a notable rise in employment numbers.
Empowering Local Talent
Saudization has enhanced local talent development through education and vocational training programs that align with market needs, equipping Saudi nationals with the skills to thrive in various sectors.
Anticipating Future Growth
Saudi Arabia is preparing for a substantial influx of young graduates into the job market and aims to create millions of new jobs in the private sector over the next decade to drive sustainable economic growth and reduce unemployment rates.
Fostering National Pride
Hiring Saudi nationals not only meets regulatory requirements but also leverages local expertise to navigate business challenges effectively, fostering a sense of national pride and ownership in the workforce.
Enhancing Workforce Capabilities
Businesses play a crucial role in advancing Saudization by investing in recruitment strategies, HR training, and employee development initiatives to attract, retain, and develop Saudi talent, contributing to sustainable growth and prosperity.
Driving Economic Diversification
As Saudi Arabia continues its journey toward economic diversification and global competitiveness, empowering Saudi nationals through Saudization remains a cornerstone of its strategic vision to position the Kingdom as a hub for innovation and technological advancement in the region.