Thursday, July 17, 2025
What is Saudization? What Job Seekers, Expats, and Employers must know
"Saudization" refers to the Saudi government's strategy of mandating that private sector employers increase their hiring of Saudi nationals. Local talent development, particularly in the business sector, and unemployment reduction are two of its primary goals. Skilled foreign experts are still in demand, even though expats encounter increasing competition in some positions. Vision 2030 aims to diversify the economy and increase the local workforce, of which this policy is a part. Most viewed: Saudi Arabia bans tobacco sales in Baqalas
* National policy known as Saudization (Nitaqat) mandates that all businesses in Saudi Arabia employ only Saudi natives.
* Companies are rated according to their ability to fulfill specific industry- and size-based targets.
* Skilled experts are still highly sought after and needed, even though foreigners have more competition.
Workers in Saudi Arabia are seeing a generational change. The commercial sector in particular relied significantly on foreign workers for many years.
However, that is changing. Efforts are being made by the Saudi government to address the rising unemployment rate among Saudi nationals and the fact that more than half of the population is under the age of 35.
The Nitaqat initiative, also known as Saudization, is forcing this change. The initiative is a step towards Vision 2030, the Saudi government's overarching goal of economic diversification and expanding opportunities for all Saudis. Recommend: Saudi Arabia amends Eid holidays Labor Law for government entities
The basic idea behind Saudization is to increase the number of Saudi nationals working for private companies, particularly in sectors that have relied on foreign workers for a long time.
A company's size, industry, and current workforce will determine the minimum number of Saudi nationals that must be hired under this scheme. There are genuine incentives to comply with the policy and penalties for noncompliance since it is mandatory.
Businesses will have to reconsider their hiring practices as a result. Being more strategic about one's place in an ever-evolving work market is what this means for expats.
Saudization: What Is It?'
As part of its Saudization policy, the Saudi government mandates that private sector employers hire a certain percentage of Saudi nationals.
The goal behind its introduction was to increase the number of Saudi nationals employed and decrease the number of people unemployed, according to the Saudi Ministry of Human Resources and Social Development.
The private sector has traditionally depended on foreign workers, especially for service, administrative, and technical positions, in comparison to the public sector, which employs an important proportion of Saudis. This sector of the economy is under Saudization's spotlight.
There is a larger goal to bring the unemployment rate down to 7% within the next decade, from a peak of 12.9% in 2018. This objective aligns with the Vision 2030 Goals. Additionally, it strengthens Saudi Arabia's effort to construct a knowledge-based economy that is stronger. Read: Grace period for expired exit visas to correct their status and leave Saudi Arabia
The Method Behind the Nitaqat System:
Six Levels Private enterprises are categorized into six zones according to the percentage of Saudi citizens employed in their overall workforce, calculated by compliance:
1. Platinum: The most advanced level of Saudization.
2. Above-average: High green level
3. Medium Green: Compliant
4. Low Green: Below the goal
5 Yellow: Very low levels of compliance Related: No more Yellow category in Nitaqat
6. Red: Does not comply
Key Reasons For It:
Advantages such as quicker visa processing, simplified labor approvals, and priority access to specific government services are available to companies in higher zones (Platinum, High Green). Delays, employment limits, penalties, and service suspensions are all possible outcomes for businesses in the lower zones (yellow and red).
Who Must Adhere?
Businesses with 10 or more workers are required to use the system of classification. It is still mandatory for all businesses, regardless of size, to employ a Saudi national.
Guidelines for Saudization in 2025:
Stricter enforcement and sector-specific restrictions will be part of the Saudization program's upgrade beginning in 2025. For example,
* Saudi nationals are essential for front-line positions in customer service and retail.
* Only Saudi managers should head up human resources departments.
* Only Saudi women can be employed as sales associates in women's apparel boutiques.
* There are currently sub-quota requirements for certain job titles in some areas, such as aviation, hospitality, and IT.
Businesses must keep themselves updated about the yearly quota adjustments or risk falling into a lower compliance category, as set by the ministry. Trending: Big changes to Saudi Visa rules
Jobs Reserved for Citizens of Saudi Arabia:
Saudi nationals are now the only ones eligible for certain positions. No amount of experience or education will get an expat hired for these roles. Some examples of this are
* Executive human resources manager, director of human resources, payroll officer.
* Tasks involving interacting with customers: reservation agents, cashiers, and call center clerks.
* Occupational specializations include dispatcher, meteorologist, and air traffic controller.
* Sales professionals specialize in women's boutiques.
* Administrative tasks: booking agent, tourist information clerk, and complaints clerk.
Every year, the government expands its Saudization program into new industries, leading to a growing list of prohibited jobs.
What Does It Mean for Expats?
In the fields of human resources, administration, and customer-facing positions—which are increasingly filled by Saudi citizens—Saudization encourages corporations to prioritize the recruitment of Saudi nationals. National employment targets now carry more weight than before in hiring decisions. Also Read: Expats to legally own property in Saudi Arabia by 2026
However, this change does not exclude expats. Experts with niche knowledge are still in high demand, especially in sectors where such knowledge is lacking on a regional level. Examples of such sectors are
1. Engineering
2. Healthcare
3. Software and Information Technology
4. Education
5. Senior management
Professionals with valuable technical capabilities, leadership qualities, or international experience continue to be attracted to Saudi Arabia. Even while employers are getting pickier, expats with special skills can still help a country's economy grow.
FAQs
1. Is Saudization mandatory for all Saudi Arabian enterprises?
Yes. Any business in the private sector with more than ten workers is required to follow the rules. Employing a minimum of one Saudi national is still mandatory for smaller businesses.
2. If a corporation falls short of its Saudization targets, what are the consequences?
The government may impose fines, limit access to services, and even revoke work visas for companies that fall into the "Red" or "Yellow" zones. Suspension of a company license is an option in extreme circumstances.
3. Is it still possible for expats to obtain work after Saudiization?
Yes, it depends on the field and function. There is a continuing need for highly qualified expats in fields such as engineering, technology, and healthcare. The hiring of Saudi nationals for administrative, sales, and human resources positions, however, is on the rise. Follow Saudi Expatriates on X
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| What is Saudization What Job Seekers, Expats, and Employers must know |
