Localization in Saudi Arabia: 600 professions and the future of national talent
The Kingdom of Saudi Arabia is undergoing a historic and fundamental transformation in its labor market structure, driven by an ambitious strategic vision spearheaded by the Ministry of Human Resources and Social Development. Saudization decisions are no longer merely regulatory measures to increase numbers, but have evolved into a comprehensive national project aimed at redefining the concept of "national competence" and empowering Saudi men and women to lead key sectors of the economy within the private sector.
The context of transformation and Vision 2030
This unprecedented movement is one of the most important fruits of the Kingdom's Vision 2030, which has placed human capital development at the forefront of its priorities. Since the launch of the Vision, the government has worked to bridge the gap between educational outputs and the changing needs of the market, overcoming the traditional challenges that faced the employment of Saudis. These efforts have resulted in expanding the scope of Saudization to include more than 600 professions and career paths, reflecting the government's commitment to opening up broad horizons for male and female graduates in various disciplines.
Significant leaps in terms of numbers
The latest economic indicators demonstrate the remarkable success of these policies, with the private sector reaching a new record high, employing over 2.5 million Saudi citizens . This growth was not only quantitative but also qualitative, as Saudi women's participation in the labor market witnessed a historic leap, rising from 23% in 2019 to over 35% currently. These figures confirm that the Saudi market has become highly attractive and capable of absorbing both female and young talent.
Focus on future professions and the knowledge economy
The impact of localization decisions was not limited to traditional jobs, but extended to specialized professions that form the backbone of the future economy. The ministry is currently focusing on localizing vital, high-value-added sectors, such as:
- The health and medical sector.
- Engineering and technical professions.
- The telecommunications and information technology sector.
- Accounting, procurement, and logistics.
This trend has directly contributed to enhancing the digital and cognitive skills of Saudi youth, making them the first choice for employers in many large establishments, and has contributed to reducing unemployment rates to unprecedented historical levels.
Localization methodology: Gradual implementation and partnership with the private sector
To ensure the sustainability of these successes, the Ministry adopted a smart methodology based on the "phased implementation" of Saudization decisions. This methodology grants private sector establishments sufficient grace periods to adjust their operations and issues detailed procedural guides clarifying the mechanisms and requirements. The Ministry also supported these decisions with a package of incentives through the Human Resources Development Fund (HRDF), including salary support, training, and skills development, to ensure that Saudi employees are the most efficient and cost-effective choice.
In conclusion, localization today is writing a new chapter in the success story of the Saudi economy, as young people are transformed from job seekers into leaders and innovators who contribute to building a prosperous and diversified economy, thus fulfilling the aspirations of the wise leadership in building a vibrant society and a strong economy.
