In a strategic move aligned with the goals of Saudi Vision 2030, the Human Resources Development Fund (HRDF) announced a significant achievement in localizing vital sectors, having successfully enabled 151,000 Saudi citizens to join the workforce in the industrial and mining sectors over the past five years. This accomplishment is the result of investments exceeding one billion Saudi riyals to support training and qualification programs linked to direct employment, reflecting the Kingdom's commitment to diversifying its economy and building a national workforce capable of leading the future.
Strategic background: Localization as a pillar of Vision 2030
Historically, the Saudi economy has relied heavily on oil revenues, but with the launch of Vision 2030, the Kingdom embarked on a comprehensive economic transformation journey aimed at reducing this dependence. The industrial and mining sectors are key pillars of this vision, with the National Industrial Strategy seeking to position the Kingdom as a leading industrial power and a global logistics hub. In this context, the Human Resources Development Fund (HRDF) plays a pivotal role in achieving localization (Saudization) goals by bridging the gap between educational outcomes and labor market demands, and equipping young Saudis with the skills necessary to compete in these promising sectors.
Details of the support and its impact on the labor market
The Fund's support was not limited to financial assistance; it also included integrated programs to ensure sustainable employment. Twenty-four specialized training agreements linked to direct employment were funded, resulting in the qualification of over 9,400 Saudi nationals with advanced technical and technological skills that meet the demands of the Fourth Industrial Revolution. As a result of these efforts, the job retention rate for those supported in the industrial sector rose to 80% , a strong indicator of the programs' success in creating a stable and attractive work environment for Saudi talent.
Incentives for establishments and skills development
To incentivize private sector establishments to attract Saudi talent, the Human Resources Development Fund (HRDF) approved an unprecedented support package, covering 50% of the Saudi employee's salary, up to a maximum of SAR 3,000 per month. This support reduces operational costs for factories and makes employing Saudis a more attractive option. In parallel, the Fund enhanced the technical skills of the workforce by supporting 15 professional certifications in specialized industrial fields, in addition to enrolling more than 5,100 Saudi men and women in on-the-job training programs to ensure they gain the necessary practical experience.
Economic importance and future impact
These efforts complement the remarkable growth witnessed by the industrial sector in 2024, with the issuance of 1,346 new industrial licenses and the commencement of production in 1,075 factories, representing investments of nearly SAR 100 billion and creating 44,000 new jobs. Empowering Saudi nationals to fill these positions not only contributes to reducing unemployment rates but also enhances the security of supply chains and increases local content. In the long term, these initiatives aim to achieve the objectives of the National Industrial Strategy, which seeks to reach an industrial GDP of SAR 895 billion and provide 2.1 million jobs by 2030, while solidifying the mining sector's position as the third pillar of national industry.
