Many think about moving to Saudi Arabia to take advantage of excellent career opportunities. If you are one of them, you must understand Saudization and how it can impact you and your career path. So, what exactly are Saudization services in Saudi Arabia, and what makes it so important in the field of job placement in the Kingdom? Carry on reading to find out.
What Is Saudization?
Saudization which is officially known as the Saudi Nationalisation Scheme or Nitaqat, is not a new policy. It was first introduced by the Ministry of Labour in 1985. This policy mandated that Saudi companies must hire a specific number of Saudi Nationals on a quota or Nitaqat basis.
However, in the last five years, the Saudi government has set aside certain job roles in Saudi Arabia exclusively for Saudi nationals. The objective of this move is to decrease Saudi unemployment while encouraging equal opportunities for men and women in the job field.
Significance of Saudization
Saudization services in Saudi Arabia are essentially helping the locals get jobs in the kingdom. This is specifically beneficial for women who now have more access to job roles like civil engineering and other careers in the country than ever before.
The Kingdom of Saudi Arabia realises that its economy needs to welcome foreign workers as well as embrace foreign companies to compete on the global level while not leaving its own people behind.
The Key Industries Affected By Saudization
In retail and wholesale sectors, the ministry has nationalized 4 out of 12 activities. The four nationalized activities include car and motorbike showrooms, men’s and kids’ ready-made garments selling shops, home and office furniture shops, and home appliances shops.
Its Impact On Business Owners
The new rules set by the governmental strategy came up with fresh challenges for companies. Many organisations can not hire more expatriates and are also unable to find local talent. This is causing Saudi workers to change jobs frequently and higher salaries, especially in the government sectors.
In the workforce, businesses are bound to maintain a Saudi quota of 70%. Female Saudis are also being encouraged to work which is likely to increase the current percentage of Saudi women holding government jobs.
HADAF (Human Resources Development Fund) has converted its branches across the KSA into employment centres to support Saudi job seekers to get jobs in the private sector.
Bottom Line
In most cases, Saudization services in Saudi Arabia won’t be noticed by foreigners while working in Saudi Arabia. However, this has selected twelve specific private-sector jobs in the kingdom that are only open to the locals. The objective of this policy is to quell the unemployment rate and ensure locals benefit from the bustling economy.
