Saudi workforce surges with 34% Saudization in operation and maintenance sector

  • 1/14/2024
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RIYADH: Saudi nationals’ participation in the workforce continues to increase, with Saudization in the operation and maintenance sector reaching 34 percent. This achievement, highlighted in a release by the Ministry of Human Resources, serves as a testament to the success of the Labor Localization and Maintenance Contracts service initiative. Since its inception from 2019 to 2023, the program has resulted in the employment of over 160,000 Saudi natives in the sector. Its objective is to increase the nationalization rates in public entities and enhance the efficiency and skills of Saudis. Efforts to ensure the success of the initiative have witnessed various developments, including the implementation of a digital service for documenting contracts in public entities. Through this service, the body can monitor the localization of employment and maintenance contracts. The recent decision regarding the Labor Localization and Maintenance Initiative is expected to have a broad impact, covering all establishments with agreements with government entities or where the state holds a stake of at least 51 percent. In December 2023, the ministry detailed a decree outlining the nationalization of various professions, such as sales, procurement, and project management, ending the previously specified grace period, as reported in a release. This move is part of the division’s ongoing efforts to increase the participation of Saudi nationals in the labor market and enhance their contribution to the economic ecosystem. The ministry stated it would require a 15 percent nationalization of sales professionals, wholesale managers, and salespeople specializing in information and communications technology equipment. During the Saudi Economic Association Conference in May 2023, the Minister of Human Resources and Social Development Ahmed Al-Rajhi stated that the Kingdom has helped provide job opportunities to over 500,000 regional nationals in the private sector since 2019. The minister added that the goals of women’s empowerment initiatives, scheduled for 2025, were achieved in 2022, with female participation in the workforce now reaching 36 percent, surpassing the 2030 target of 30 percent.

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