In a strategic move aimed at reshaping the Saudi labor market, the Saudization decisions issued by the Ministry of Human Resources and Social Development have brought about a qualitative shift, transforming regulatory policies into a comprehensive national project. With the expansion of Saudization to include more than 600 professions, the Kingdom is opening its doors to thousands of graduates, placing national talent at the heart of the future economy, in line with the objectives of Saudi Vision 2030.
The historical context of localization programs: from “Nitaqat” to qualitative localization
The efforts to localize jobs were not a spur-of-the-moment initiative, but rather an extension of long-standing national policies that began to take a more organized form with the launch of the Nitaqat program in 2011. Initially, the program aimed to increase the employment of Saudi citizens in private sector establishments by classifying them into different Nitaqat categories based on their adherence to localization quotas. With the launch of Vision 2030, the concept evolved from simply achieving quantitative targets to focusing on "qualitative localization," which targets specialized and high-value-added professions, with the goal of building a knowledge-based and skills-driven economy and reducing reliance on expatriate labor in vital sectors.
The impact of localization in numbers: historic leaps in employment and women's empowerment
The latest statistics demonstrate the tangible positive impact of Saudization policies, with the number of Saudi men and women working in the private sector exceeding 2.5 million – a record high reflecting the success of these initiatives. Perhaps the most significant achievement is the remarkable growth in Saudi women's participation in the labor market, which has jumped from 23% in 2019 to over 35% currently, surpassing the Vision 2030 targets ahead of schedule. This expansion in job opportunities has contributed to reducing unemployment rates to historic lows, thereby strengthening social stability and bolstering the purchasing power of Saudi families.
Targeting the professions of the future: Building a diversified and sustainable economy
The impact of Saudization decisions has not been limited to increasing the number of employees, but has extended to the quality of available opportunities. Current efforts are focused on specialized professions that form the backbone of promising sectors, such as healthcare, engineering, technology, accounting, marketing, procurement, and logistics. This approach ensures that young Saudis obtain jobs requiring advanced cognitive and digital skills, keeping pace with global transformations in artificial intelligence and data analytics, thus ensuring their readiness for the future economy and enhancing the Kingdom's competitiveness regionally and internationally.
Implementation and support mechanisms: an effective partnership with the private sector
The Ministry of Human Resources and Social Development adopts a well-considered methodology in implementing Saudization decisions, based on comprehensive studies of the labor market and the private sector's capacity to absorb Saudi nationals. Many decisions are implemented in phases, granting establishments sufficient time to adapt to the new requirements without impacting their business continuity. To support this transformation, the Ministry, in partnership with the Human Resources Development Fund (HRDF), offers a comprehensive package of incentives and support programs. These include assistance with recruitment and hiring processes, specialized training and development programs, and support for job stability, creating an attractive and sustainable work environment for all.
