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Saudization resolutions launched by the HRSD have contributed to a qualitative leap in the Saudi labor market. Directed policies turned towards the empowerment of citizens from mere regulatory procedures into a national integrated project that redistributes opportunities and raises the level of readiness of national talents for qualitative and future professions.
Over the latest years, such resolutions have been expanded to include more than 600 professions targeting male and female graduates. They have shown clear results that reflect their positive effect. The number of Saudi labors in the Private Sector has raised to more than 2,500,000 male and female citizens based on the latest indices. Meanwhile, Saudi women’s participation has witnessed the biggest growth in the history of the labor market since it leaped from 23% in the year 2019 to more than 35%. It is a growth that reflects the volume of the new opportunities provided to national cadres in various sectors.
The effect of such resolutions has not been only limited to raising the ratios of employment, but also has expanded to include the quality of professions and sectors to which citizens tend to. The new policies have allowed for wide opportunities in modern paths that belong to the future economy. This transformation has contributed to a large segment of male and female youth obtaining jobs built on digital and cognitive advance skills, and cope up with global transformations in emerging technologies. Such resolutions also have a direct effect on reducing the unemployment rate in the KSA. The wide span of job opportunities and their direction to national talents has contributed to accelerating the entry of job seekers into the Private Sector, which has been reflected in the decline of unemployment to unprecedented historical levels. The specialized programs launched by the HRSD, in cooperation with relevant entities, have brought closer the gap between the required skills and market needs. So, it has speeded up graduate employment and has raised the efficiency of matching job seekers with available opportunities within vital sectors.
The current efforts of the Saudization program are focused on specialized professions which constitute the backbone of the fastest-growing sectors. Such as healthcare, engineering, technological, procurement, accounting, marketing, and logistic professions. Saudization resolutions are built on comprehensive studies that consider the nature of the labor market in the targeted professions and the number of job seekers, from graduates in the relevant majors and current student in such majors, as they are future workforces that will join the market over the upcoming years. This is in addition to the assessment of the private sector reality and ability to accommodate the national cadres of various professional specialties, which achieves a sustainable balance between supply and demand.
As a part of the enforcement of the Saudization resolutions, the HRSD is keen to grant establishments grace periods that separate between the announcement about and the enforcement of a resolution. Additionally, a mechanism for phasing enforcement will be adopted for some resolutions. So, Saudization ratios will raise gradually in each phase, which allows sufficient time for the private sector to fulfill requirements and complete its operating readiness without prejudice to business continuation. Furthermore, the HRSD issues a procedural manual for each Saudization resolution, via its website, stating the details of, an enforcement mechanism for, and the legal requirements of such resolution, in order to enable establishments to comply with it clearly and organizationally, while imposing legal penalties on violators, which boosts competitive justice and establishes compliance in the labor market.
In this context, the HRSD dedicated an integrated package of motivations and procedures that support private-sector establishments, starting from supporting the processes of attraction, training and qualifying, and that extend to enhancing job stability, while giving a priority to access the programs and services of the Human Resources Development Fund (HADAF). This contributes to reducing operating costs and supplying Saudization sustainability.
This regulatory efforts, for the Saudization resolutions’ enforcement and continuous achievements in the Saudi labor market, embody the Country's interest in empowering and developing the ability of an individual and providing a more attractive and competitive environment, in consistency with Vision 2030 which strives to raise the quality of life and build a knowledge-and-skill-based economy.
