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Insights   >   The Expanding Horizon of Saudization: A Deep Dive into the Future of Employment in Saudi Arabia

The Expanding Horizon of Saudization: A Deep Dive into the Future of Employment in Saudi Arabia

Author: Daniyal Chishti, Albatul Alharthi
Jul 20, 2023
Employers • KSA

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

The Saudization drive has extended its reach to include sectors such as project management, procurement and sales, outlets providing services for shipping activities and freight brokerage, as well as outlets for decor and women's tailoring. 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 of Project Management and Procurement Professions

The Saudization initiative is set to make significant strides in the project management and procurement sectors, aimed at ushering in a new era of job opportunities and growth. The strategy is a phased one, seeking to imbue the project management sector with local talent, beginning with a 35 per cent workforce localization target that will eventually rise to 40 per cent. This initiative is in tandem with the Ministry of Municipal, Rural Affairs, and Housing. The proposed minimum wage of SR6,000 is not merely a financial incentive but also a recognition of the value and potential that Saudi nationals bring to the table.

Project management is an essential function in any organization, directly influencing the ability to deliver projects effectively and on time. Localizing this sector opens doors for young Saudis to hone their leadership skills, strategic thinking, and ability to operate in a dynamic business environment. Roles such as project managers and project management specialists will provide an ideal platform for Saudi nationals to enhance their expertise.

In parallel, the procurement sector has also been earmarked for Saudization. With 50 per cent localization already achieved in establishments employing three or more workers in procurement roles, the focus now is on continuing this progress. Jobs like purchasing manager, purchasing representative, food manager, private trademark supply specialist, and tendering specialist have been identified as key areas to be Saudized, providing a diverse array of opportunities for the Saudis.


Saudization in the Sales and Logistics Sector

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.

Logistics, too, is an integral part of the economy, with Saudi Arabia's strategic location making it a key player in global supply chains. Saudization has permeated 14 activities in this sector, encompassing outlets providing services for freight activities and freight brokers. This move is expected to bolster the efficiency of supply chains and provide a significant boost to the national economy.


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.


Compliance and Enforcement of Saudization Policies

To ensure the successful execution of this initiative, compliance is paramount. The MHRSD has issued procedural guides that clarify the mechanisms and details of the Saudization process, setting clear expectations for all parties involved.


The Future of Saudization

The expansion of Saudization is not just an employment strategy but an encompassing national vision aimed at the betterment of Saudi Arabia's socio-economic structure. It promises a future where young Saudi men and women play an integral part in driving their nation's growth, laying the foundation for a self-sustainable Saudi Arabia. The success of this initiative will undoubtedly serve as a model for countries around the world looking to bolster their workforce with homegrown talent.


Achieve your Saudization talent requirements with TASC 

As Saudi Arabia undergoes an unprecedented economic transformation, the Saudization program has emerged as a pivotal initiative to replace foreign workers with Saudi nationals across various sectors. In this evolving landscape, organizations must understand the dynamics of Saudization and embrace the opportunities it presents.

One key aspect of attracting Saudi talent to an organization is understanding what motivates them. In a recent blog, What Draws Saudi Talent To An Organization?, we delve into the factors that motivate Saudi professionals to choose a particular workplace. The blog sheds light on the preferences, aspirations, and expectations of Saudi talent, providing crucial insights for organizations seeking to leverage local expertise.

At TASC Outsourcing, we recognize the profound impact of Saudization on the employment landscape. Our expertise lies in helping organizations navigate these dynamic changes and harness the immense opportunities presented by the Saudization program. By understanding and complying with Saudization policies, organizations can avoid compliance pitfalls and tap into a vast network of skilled Saudi professionals ready to contribute to their growth and success.

Partnering with TASC means unlocking a wealth of local talent across various sectors. Our specialized approach involves identifying top Saudi talent and matching their unique skills and aspirations with your organization's requirements. Contact us today to embrace Saudization, build a diverse and empowered workforce, that aligns with Saudi Arabia's economic future.

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