In a strategic move aimed at enhancing the readiness of Saudi nationals for the labor market, the Ministry of Human Resources and Social Development in Saudi Arabia has issued a new ministerial decree mandating that private sector establishments employing 50 or more workers provide on-the-job training opportunities for Saudi graduates and job seekers. This decree is part of the Ministry's ongoing efforts to regulate vocational training programs and equip young people to enter the workforce with high efficiency.
General context and objectives of Vision 2030
This decision falls within a broader framework of initiatives launched by the Kingdom to achieve the goals of Vision 2030, which prioritizes human capital development and reducing unemployment rates. Through these policies, the Kingdom seeks to bridge the gap between the skills acquired in academic education and the actual requirements of the private sector, which is the main driver of economic development. On-the-job training is considered one of the most effective tools for providing graduates with the necessary practical experience, thereby increasing their employment opportunities and long-term job stability.
Details of the decision and implementation mechanism
According to the new decision, targeted establishments are obligated to train at least 2% of their total workforce annually. The details of the training programs have been specified to ensure maximum benefit
- Training duration: The training program lasts between a minimum of two months and a maximum of six months.
- Contract documentation: The training contract between the establishment and the trainee must be documented through the “Qiwa” electronic platform, and the contract must include clear details about the duration of the training, its stages, the targeted skills, in addition to the rights and duties of both parties.
- Ceiling for large establishments: A fixed ceiling has been set for establishments that include 5,000 workers or more, where the required regulatory limit is 100 trainees per year, in order to ensure the fair distribution of opportunities.
Expected impact on the economy and the labor market
This decision is expected to have a multifaceted positive impact. Domestically, it will contribute to raising the efficiency and competitiveness of the national workforce, thus supporting localization efforts across various vital sectors. The decision will also provide young people with a genuine opportunity to gain firsthand practical experience, facilitating their transition from education to the workplace. Regionally, this step strengthens the Kingdom's position as an attractive environment for investments seeking qualified personnel and underscores the Kingdom's commitment to building a sustainable, knowledge-based, and skills-driven economy.
Facility obligations and certification
To ensure the quality of training programs, the decision mandates that establishments prepare clear and practical training plans and provide trainees with the necessary tools and equipment. Companies are also required to submit periodic reports on trainees' performance and progress. Upon successful completion of the training period, the establishment is obligated to provide the trainee with a "Training Completion Certificate" detailing the program duration and the skills acquired, thus adding value to their resume. The Ministry has issued a comprehensive procedural guide outlining all aspects of the decision and its implementation mechanisms, emphasizing that it will take the necessary measures to ensure all establishments comply with its provisions.
