How Saudi Arabia’s nationalization quota aims to deepen the Kingdom’s tech talent pool

The number of tech jobs held by Saudi nationals is projected to grow, with measures aimed at generating more than 8,000 engineering roles. (Shutterstock)
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Updated 15 August 2024
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How Saudi Arabia’s nationalization quota aims to deepen the Kingdom’s tech talent pool

  • Engineering firms in the Kingdom are now required to hire at least 25 percent of their staff from the local population
  • Recruiters say the new policy makes a holistic approach to training, incentives and career progression imperative

DUBAI: Behind Saudi Arabia’s showpieces of infrastructure, towering skyscrapers and ambitious giga-projects is an army of highly skilled engineers who deal with the nuts and bolts, as it were, of the Kingdom’s Vision 2030 transformation.

Many of the engineering jobs since the start of the oil boom have been held by expatriates, who came to Saudi Arabia to make a good living on the strength of technical knowledge and skills picked up in their home countries and experience gained while working on engineering projects there.

To ensure that the Kingdom’s transformation is authentically Saudi as well as to create attractive job opportunities for nationals, the Ministry of Human Resources and Social Development announced last month a 25 percent quota for nationals in engineering professions.

The policy is targeted at private-sector firms that employ five or more engineers. The move will therefore have the added bonus of growing the Kingdom’s private sector, in turn helping to diversify the economy away from reliance on hydrocarbons.

According to the Saudi Council of Engineers, there are currently 448,528 engineers, technicians and specialists working in the Kingdom, with Saudis making up 34.17 percent of this number.

The number of jobs and the proportion of them held by Saudi nationals are projected to grow, with measures aimed at generating more than 8,000 engineering roles and an additional 8,000 positions in technical engineering fields.

Marwa Murad, managing director and founder of Maximiliano Development Management Services, believes the Kingdom can boost the localization of its technical workforce while maintaining economic stability and growth by implementing several strategies.

Establishing comprehensive training and development programs tailored to the specific needs of the engineering and tech sectors was essential, she told Arab News.

“By investing in vocational training and higher education partnerships with universities, the government can equip Saudi citizens with the necessary skills and knowledge to excel in engineering roles,” Murad said.

Encouraging partnerships between educational institutions and private sector companies is another strategy. Such programs can create an ecosystem that supports practical training and enhances internship opportunities for students.

Additionally, said Murad: “These collaborations can ensure that graduates are job-ready and familiar with the demands of the engineering field.”

Ali Nasir, managing director and partner at recruitment agency GRG, believes investment in science, technology, engineering and mathematics programs — known collectively as STEM — is another effective approach to boosting Saudization in the field.

“This includes significant investments in top-tier educational programs, providing scholarships and financial assistance, and facilitating mentorship and internship opportunities for the youth,” Nasir told Arab News.

Nasir also believes that cultivating a culture of entrepreneurship within the tech sector is desirable in order to encourage young Saudis to start their own tech ventures, which in turn will boost the private sector and promote organic job creation.

“This not only highlights the potential of STEM fields but also significantly contributes to advancing the nation’s economic development,” he said.

Along with educational partnerships, Murad says more needs to be done to address the lack of women in the Saudi engineering sector — a field traditionally dominated by men.

Promoting gender inclusivity in engineering can significantly broaden the talent pool, she said: “Initiatives that support women in engineering, such as mentorship programs and flexible working conditions, can help increase female participation in the workforce.”

Currently, women represent just 3.19 percent of the total number of Saudi engineers and technicians in the sector, while men make up the remaining 96.81 percent.

To address this imbalance, an initiative launched in April aims to increase the number of women in engineering by providing female Saudi engineers with training under the supervision of Aviation Australia and the International Aviation Technical College at Riyadh Airport.

This followed a memorandum of understanding signed in August between the Kingdom’s newest national carrier, Riyadh Air, and the Colleges of Excellence — an institution established by the Vocational Training Corp. in Saudi Arabia to nurture local talent.

The program, which represents the first of many collaborations, includes Saudi high-school graduates with impressive GPAs selected from thousands of applicants.

To actively improve diversity and inclusion in the sector, Riyadh Air’s first intake of trainee engineers from the apprenticeship program was made up entirely of women.

“Campaigns highlighting success stories, benefits of engineering professions and available support programs can stimulate interest among the youth,” said Murad.

Reflecting on progress in the Saudi engineering sector, Nasir from GRG said the profession had become an increasingly popular career path among Saudi men and women over the past 20 years, thanks in part to several state initiatives.

“The government proactively carries out career fairs, spotlights successful Saudi engineers as role models, and is building up a supportive environment for engineering startups,” he said.

Among the key initiatives introduced by the government is the Nitaqat Program, which categorizes companies based on the proportion of Saudis on their payroll. Those that score highly are offered benefits such as easier access to work permits for expatriates and eligibility for government contracts.

Additionally, the Human Resources Development Fund provides financial incentives for companies that implement training programs for Saudi nationals. The government also boosts programs tailored to generate job opportunities in high-demand sectors, facilitating effective job matching for Saudi citizens.

“It’s all about making engineering a go-to choice for the youth, while offering support and showcasing the benefits,” said Nasir.

Murad believes more can be done to move beyond simply enforcing Saudi quotas for companies and instead inspire locals to pursue STEM fields and recognize the opportunities offered by a career in engineering.

This includes initiating national campaigns to shift cultural perceptions about engineering. Moreover, she said, educational reforms should focus on experiential learning and critical thinking to make STEM subjects more engaging.

Currently, companies that achieve or surpass Saudization targets may receive tax benefits and reduced government service fees, helping to mitigate hiring costs. Similarly, initiatives to assist small and medium-sized enterprises include access to funding and mentorship.

“Supportive policies and incentives for companies investing in talent development, rather than just meeting quotas, can foster a more effective approach to Saudization,” said Murad.

Localization quotas have had mixed results across various Gulf countries. In nations like the UAE and Qatar, the policy has successfully increased the employment of local talent engineering.

These countries have effectively implemented initiatives to develop national skills through targeted training programs and educational reforms.

“As a result, there is a growing presence of skilled local professionals in industries that were traditionally reliant on expatriate workers,” Murad said.

However, these have not been without their challenges. “Some Gulf countries experienced an initial rise in local employment figures, but the retention of these employees remained a concern,” she said.

Contributory factors include the competitive job market, salary disparities, and the preference for expatriates who may have more practical experience in specific roles.

This has led some local professionals to seek opportunities abroad or in sectors that offer better compensation and career growth, she added.

Echoing Murad’s views, Nasir also believes quotas alone may not be enough to ensure sustainable workforce localization. He referred to Oman’s Omanization program as one that has seen moderate success, particularly in banking.

Likewise in Bahrain, Bahrainization has notably improved local employment, especially in engineering. Meanwhile, Kuwait’s Kuwaitization efforts have been less effective, with the private sector still largely dependent on foreign workers.

To ensure positive outcomes for Saudization, Murad believes crucial lessons can be drawn from the experiences of other Gulf countries.

She feels the effectiveness of localization quotas hinges on several factors, including the alignment of educational programs with market needs, the availability of mentorship and career development opportunities, and a shift in workplace culture toward inclusivity.

“Emphasizing continuous professional development and creating clear career pathways can enhance the long-term success of localization efforts,” she said.

“While localization quotas can drive significant progress in employing local talent, their effectiveness depends on a holistic strategy that addresses market realities, supports continuous learning, and enhances the overall appeal of career opportunities in STEM fields for Saudi nationals.”

 


Waste not, want not: Misk Global Forum touts benefits of recycling to businesses and environment

Updated 20 November 2024
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Waste not, want not: Misk Global Forum touts benefits of recycling to businesses and environment

  • ‘Waste is the gold of the 21st century,’ says founder of pioneering initiative that transforms fish and ocean waste into sustainable textiles
  • Meanwhile, another project has worked with more than 200 farmers to plant 200,000 trees and regenerate 370 acres of land

RIYADH: The world’s economy is shifting towards a state in which sustainability and circularity will no longer be considered optional extras but the baseline for how we operate, experts said at the Misk Global Forum in Riyadh on Tuesday.

During a panel discussion titled “A Circular Revolution,” the participants explored ways in which waste materials can be reused or recycled to help achieve a circular economy that is beneficial to the environment while also generating profits.

“Waste is the gold of the 21st century,” said Moemen Sobh, the Egyptian founder and CEO of Visenleer, described as the first initiative of its kind in the Middle East and North Africa region, which transforms fish and ocean waste into sustainable textiles.

Noting that the fashion industry produces more greenhouse gas emissions than the oil and gas industries, he added: “By 2030, 50 percent of the gas emissions will be because of fashion.” Meanwhile, Egypt has a water deficit of 7 billion cubic meters a year and could run out of the vital resource as soon as 2025, UNICEF warned in 2021.

Sobh said his passion for finding sustainable solutions to these problem stems from his heritage as part of a northern Egyptian family descended from a long line of fishermen. So he decided to launch an initiative that buys fish waste that was being collected in plastic bags and dumped into freshwater sources, and instead use it to produce a more environmentally friendly alternative to animal and faux leather.

Through Visenleer, Sobh created the first sustainable fashion line in the region that uses only ocean waste to create its materials. He said the traditional tanning process for leather generates 90 percent of the greenhouse gas emissions produced by the fashion industry, so it was important for him to develop an alternative process that uses only glycerin, water and sunlight.

Electronic waste is another major environmental issue, and Alex Mativo, co-founder and CEO of Duck Analytics, spoke about the ways in which old devices can be transformed into products such as jewelry and fashion accessories.

He said he learned early on in his career that the circular economy means “turning something that is obsolete into something really beautiful.”

Mativo, who has been featured on the Forbes 30 Under 30 list, added that Duck Analytics uses data and artificial intelligence to help make the supply chains of global companies, such as Coca Cola and Red Bull, more efficient.

A circular economy, which is one based on the reuse and regeneration of materials or products, is beneficial both for businesses and the planet because it helps to reduce waste and generate profit, he said.

Louise Mabulo is the founder of the Cacao Project, an initiative that helps farmers build sustainable, resilient livelihoods through agroforestry, which involves the integration of trees and shrubs into crop and animal farming systems to create environmental, economic and social benefits for farmers and communities.

“Food systems account for 30 percent of global greenhouse gas emissions,” she said. The Cacao Project has worked with more than 200 farmers to plant almost 200,000 trees and regenerate more than 370 acres of land, she added. And that is not all.

“All of these farmers are being upskilled into businessmen and they are using agricultural waste; they are using cacao pods to make chocolate products and using that to create an income but also create economic benefits for themselves and for their communities, to protect them against storms and to provide better food,” Mabulo said.

As young innovators seek to develop sustainable solutions to environmental challenges, she said that “sometimes looking into the future requires looking back into the past.”

Rather than focusing only on new technologies, Mabulo added, knowledge of many solutions that can help solve the world’s problems already exists within communities.

“The key lies in unlocking them and finding innovative ways to marry ancestral knowledge or the resources we have with science, with facts, being able to communicate it well, and being able to talk to the communities in a language that they understand, and serve that gap.”


MoU signed to establish Saudi-Brazilian Coordination Council in Rio de Janeiro

Saudi Foreign Minister Prince Faisal bin Farhan and Brazilian Foreign Minister Mauro Vieira sign the MoU in Rio de Janeiro.
Updated 19 November 2024
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MoU signed to establish Saudi-Brazilian Coordination Council in Rio de Janeiro

  • Kingdom’s foreign minister visited Brazil to attend the G20 Summit that ended on Tuesday
  • Prince Faisal and Vieira reviewed relations between their countries and ways to develop them

RIYADH: A memorandum of understanding to establish the Saudi-Brazilian Coordination Council was signed by the foreign ministers of both countries in Rio de Janeiro on Tuesday, Saudi Press Agency reported.

The agreement was signed during a meeting between Brazilian Foreign Minister Mauro Vieira and Saudi Foreign Minister Prince Faisal bin Farhan.

It is a “continuation of what was agreed upon between the leaderships of the two countries during the visit of the President of Brazil Luiz Inacio Lula da Silva to the Kingdom on November 30, 2023,” SPA said.

The Kingdom’s foreign minister visited Brazil to attend the G20 Summit that ended on Tuesday.

Prince Faisal and Vieira reviewed relations between their countries and ways to develop them. They also discussed regional and international developments and efforts made in this regard.


Saudi entrepreneurs present expertise at Misk forum in Riyadh

Updated 19 November 2024
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Saudi entrepreneurs present expertise at Misk forum in Riyadh

  • Passion alone won’t build a business, says Prepline CEO Essa Behbehani

RIYADH: “If you don’t channel your passion for executing a business, then you simply have a hobby,” Essa Behbehani said at the Misk Global Forum on Tuesday.

The CEO of Prepline, a food and beverage investment and development company, made the statement during the panel discussion “Dream, Do, Dare: The Entrepreneur’s Cookbook,” which discussed core business skills, provided guidance on overcoming common startup challenges, and offered essential advice on scaling enterprises through funding.

"In a business, the most important factors are the product, resistance, and community approval." (AN photo by Huda Bashatah)

“Passion is one of the main elements you need to build a business on, but it is not the main element,” Behbehani said.

He outlined the four key roles in business success, saying: “You are either an investor, manager, developer, or craftsman. Each one needs the other element to succeed.”

HIGHLIGHTS

• The eighth Misk Global Forum, designed to encourage dialogue and exchange of ideas, is showcasing Misk Foundation’s dedication to engaging young minds.

• On Tuesday, Essa Behbehani and Abdullah Al-Saleem discussed core business skills, provided guidance on overcoming common startup challenges, and offered essential advice on scaling enterprises through funding.

Reflecting on the evolution of business fundamentals over two decades, Behbehani noted a significant shift, and added: “Back then, (around) 2003 to 2004, the most important elements in a business were the product, resistance, and community approval.”

"In a business, the most important factors are the product, resistance, and community approval." (AN photo by Huda Bashatah)

Behbehani noted that at that time, entrepreneurs like himself lacked marketing knowledge and did not have modern tools like social media to promote their businesses.

However, today’s business landscape demands different priorities, and he said: “These skill sets that you have need to be transferred into three main elements: You need to have a mindset, speed, and quality of product.

"In a business, the most important factors are the product, resistance, and community approval." (AN photo by Huda Bashatah)

“Mindset nowadays is everything — without a mindset, you can never grow a business.”

He cautioned current entrepreneurs about the limitations of focusing solely on product excellence, asking: “What are you going to do with an amazing product without the right mindset and the right speed to execute it?”

"In a business, the most important factors are the product, resistance, and community approval." (AN photo by Huda Bashatah)

During the same session, Abdullah Al-Saleem, the CEO and co-founder of Mushtari, a platform for business acquisition, shared valuable insights on when and how entrepreneurs should seek guidance for their ventures.

“Every time is the right time to seek help,” Al-Saleem said, highlighting the importance of continuous learning and consultation in business development.

He advocated for a two-pronged approach to seeking advice, distinguishing between general business consultants and industry-specific experts.

He added: “There are two people you have to seek help from: People that know generally about the industry, and people that know specifically about the industry.”

Using the restaurant business as an example, Al-Saleem described how he would consult general business experts for fundamentals like “hiring, culture, (and) cash flow,” while seeking industry-specific guidance for specialized operations.

However, gathering advice, he said, was just the first step. He noted that it was crucial to ensure team involvement in implementing recommendations.

He said: “When I take all these ideas or all these bits of advice, I brainstorm it with the team.”

This collaborative approach ensured that potential solutions were thoroughly evaluated before implementation, he said.

Al-Saleem further emphasized the importance of practical application through trial and error, and he always involved his team in the process.

He added: “They are the engine of the business and without the team, there is no business.”

 


Saudi Arabia, China, Iran meet to advance Beijing Agreement

Updated 19 November 2024
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Saudi Arabia, China, Iran meet to advance Beijing Agreement

  • Efforts focus on regional stability, economic collaboration

RIYADH: The second meeting of the Saudi-Chinese-Iranian Joint Tripartite Committee to follow up on the Beijing Agreement was held in Riyadh on Tuesday, the Saudi Press Agency reported.

Saudi Deputy Foreign Minister Waleed bin Abdulkarim Elkhereiji chaired the meeting, with Vice Foreign Minister of China Deng Li and Iran’s Deputy Foreign Minister for Political Affairs Majid Takht Ravanchi present.

The Saudi and Iranian representatives reaffirmed their commitment to fully implementing the Beijing Agreement and strengthening neighborly relations through adherence to the UN Charter, the Charter of the Organization of Islamic Cooperation, and international law, emphasizing respect for sovereignty, independence, and security.

Saudi Arabia and Iran also welcomed China’s ongoing positive role and emphasized the importance of its support in following up on the Beijing Agreement’s implementation. China reiterated its readiness to encourage further steps by both nations to enhance their relationship in various fields.

The three countries praised the progress in Saudi-Iranian relations, highlighting the significance of direct communication at all levels and the opportunities for mutual cooperation amid regional tensions that threatened global and regional security.

They noted the progress in consular services, enabling over 87,000 Iranian pilgrims to perform Hajj and more than 52,000 to perform Umrah securely in 2024.

They also welcomed the first meeting of the Saudi-Iranian Joint Media Committee and the signing of a memorandum of understanding between the Prince Saud Al-Faisal Institute for Diplomatic Studies and Iran’s Institute for Political and International Studies.

Saudi Arabia and Iran expressed their readiness to sign a double taxation avoidance agreement and, along with China, looked forward to expanding economic and political cooperation.

The three nations called for an immediate end to Israeli aggression in Palestine and Lebanon, and condemned violations of Iran’s sovereignty and territorial integrity.

They stressed the need for uninterrupted humanitarian aid to Palestine and Lebanon and warned that continued violence posed serious threats to regional and global security, including maritime safety.

They also reaffirmed their support for a comprehensive political solution in Yemen, in line with internationally recognized principles under UN auspices.


Saudi Arabia foreign minister urges a balanced energy transition at G20 Summit session

Updated 19 November 2024
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Saudi Arabia foreign minister urges a balanced energy transition at G20 Summit session

  • Prince Faisal outlined three pillars for effective energy transition during a discussion at the G20 Summit

RIO DE JANEIRO: Saudi Arabia’s foreign minister highlighted the importance of a balanced, inclusive approach to energy transition while ensuring global energy security and sustainable development at a Group of 20 session on Tuesday, Saudi Press Agency reported.

Prince Faisal was leading the Kingdom’s delegation during a session titled “Sustainable Development and Energy Transition,” SPA added.

Energy security represented a global challenge and an obstacle to development and poverty eradication, the minister said, calling for energy plans that considered each country’s circumstances and development needs.

Prince Faisal outlined three pillars for effective energy transition: Ensuring energy security, maintaining access to affordable energy, and achieving environmental sustainability.

He said that the transition required significant investment and time to maintain market stability while ensuring fairness and inclusivity.

Prince Faisal also highlighted the role of technological innovation in managing emissions and environmental impacts.

He said that Saudi Arabia’s investments in innovative technologies had resulted in one of the world’s lowest emissions intensity rates in oil and gas operations, adding that the Kingdom was also advancing its renewable energy goals, aiming for 50 percent of electricity generation from renewables by 2030.

Prince Faisal added that the Kingdom was also expanding its clean hydrogen production and implementing the circular carbon economy framework to repurpose emissions into valuable products.

During his address, the prince also outlined Saudi Arabia’s commitment to global sustainability through its flagship initiatives, the Saudi Green and Middle East Green programs, which are tailored to the country’s development needs.

He called for enhanced international cooperation to ensure energy transitions were equitable, inclusive and supportive of global development goals.

Prince Faisal expressed Saudi Arabia’s appreciation for Brazil’s leadership of the G20 in 2024 and extended well wishes to South Africa as it assumes the presidency in 2025, SPA reported.