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.”

 


Saudi Arabia expected to be among top tourism destinations by 2030, minister says

Updated 22 January 2025
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Saudi Arabia expected to be among top tourism destinations by 2030, minister says

DAVOS: Saudi Arabia’s Minister of Tourism Ahmed Al-Khateeb said tourism accommodation in the Kingdom was expected to double over the next 10 years.

Al-Khateeb said Saudi Arabia, which has about 400,000 guest rooms at the moment, was projected to double that number to 800,000 by 2030.

The minister reiterated Saudi Arabia’s goal to be part of the world’s top seven tourism destinations by 2030.

“Saudi looks at why people travel and what they are looking for and understand what people want and focus on convenience,” he said.

The Kingdom’s tourism industry is growing at a rapid rate with the creation of mega-projects such as NEOM, a futuristic city on the Red Sea, and The Red Sea Project, which focuses on luxury and eco-tourism, expected to redefine global tourism standards.

Additionally, cultural landmarks such as AlUla, with its ancient Nabatean heritage, and Diriyah, the birthplace of the Saudi state, are undergoing significant restoration to offer visitors unique historical and cultural experiences.

When asked about how the Kingdom manages this growth, the minister said that governance in the Kingdom ensured coordination and that growth was not too rapid.

“There is no such thing as ‘over-tourism,’ but there is mismanagement of resources,” he said.

“Governments are taking tourism for granted. In Saudi we have a minister for tourism and a minister for culture. Having separate ones allows full focus and dedication on goal achieving,” Al-Khateeb added.

European Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas said Saudi Arabia was setting an example for the EU in managing tourism and developing a strong travel industry.

With technology advancing rapidly, Al-Khateeb said it was important to use new innovations smartly in the tourism sector.

“This is a people-to-people business. Yes, we should use technology for ease and convenience, but people interaction is an essential part of the experience,” he said.

 


Saudi Arabia sends new aid convoys for residents returning to northern Gaza

Updated 22 January 2025
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Saudi Arabia sends new aid convoys for residents returning to northern Gaza

  • The assistance is part of a campaign aimed at providing essential relief to the Palestinian people in the Gaza Strip

RIYADH: New aid convoys from Saudi Arabia have arrived in northern Gaza, facilitated by the Saudi aid agency KSrelief.

The assistance is part of a campaign aimed at providing essential relief to the Palestinian people in the Gaza Strip, the Saudi Press Agency reported recently.

The convoys delivered shelter kits, including blankets, mattresses, cooking utensils, water containers and other necessary supplies to assist residents returning to their homes in northern Gaza.

The Saudi Center for Culture and Heritage, the executive partner of KSrelief in Gaza, began distributing these aid packages promptly.

The aid aims to help beneficiaries meet their basic needs as they return to homes that have been destroyed or damaged, SPA reported.

The effort is part of a series of humanitarian and relief programs executed by Saudi Arabia in solidarity with the Palestinian people during their ongoing hardships.


Saudi Arabia’s FM announces landmark visit to Lebanon

Saudi Foreign Minister Prince Faisal bin Farhan speaks at the WEF in Davos on January 21, 2025. (AFP)
Updated 21 January 2025
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Saudi Arabia’s FM announces landmark visit to Lebanon

  • The one-day trip on Thursday will mark the first visit by a high-ranking Saudi official to Lebanon since 2015
  • Prince Faisal bin Farhan welcomed the potential formation of a new government but emphasized the need for real reforms

DAVOS: Prince Faisal bin Farhan said on Tuesday in Davos he would visit Lebanon later this week, the first such trip by a Saudi foreign minister in more than a decade.

He made the announcement during a panel on diplomacy at the World Economic Forum’s annual meeting in the Swiss resort town. 

The one-day trip on Thursday will mark the first visit by a high-ranking Saudi official to Lebanon since 2015, after years of strained relations due to Lebanon’s perceived alignment with Iran, its role in drug smuggling to Gulf countries, and ongoing instability.

Prince Faisal described the recent election of a president in Lebanon, following a prolonged political vacuum, as a highly positive development.

He said the Kingdom welcomed the potential formation of a government but emphasized the need for real reforms and a forward-looking approach to ensure sustainable progress.

He reiterated that the future of Lebanon rested in the hands of its people, urging them to make decisions that steer the country in a new direction.

A UN peacekeeper’s (UNIFIL) vehicle rides along a street in Marjaayoun, Southern Lebanon January 20, 2025. (AFP)

“We will need to see real action, real reform and we will need to see a commitment to a Lebanon that is looking to the future, not to the past,” said Prince Faisal.

“And based on what I hear there and what we see, I think that will inform the Kingdom’s approach, but I have to say what I’ve seen so far and the conversations that we’ve been hearing in Lebanon, all allow me to be very much optimistic.

“We’ve always said, it’s really up to the Lebanese to decide and to make the choices to take Lebanon in a different direction.”

Prince Faisal also said he is “cautiously optimistic” about Syria’s future, citing encouraging signs from the new administration in Damascus and the resilience of the Syrian people.

He emphasized the need for patience and engagement from both the regional and international communities to help rebuild the country’s broken institutions and create a better future for Syrians.

“I would certainly say I’m cautiously optimistic. I may even lean further because you have, first of all, an administration that is saying the right things in private and in public, doing a lot of the right things, but also you have a Syrian people that are incredibly capable and incredibly resourceful,” he said.

He urged collaboration to build on recent positive developments, underlining the collective responsibility to aid Syria’s recovery, especially considering the willingness of the new administration in Damascus to engage constructively with regional and global partners.

“The reality is that they have inherited a broken country with no real institutions and they are having to build all of that from scratch, and that’s not an easy thing,” he said.

“So it’s up to us, I feel in the region first but certainly the international community, to engage, to come and build on this positive development and help Syria and the Syrian people see a much better future.”

Prince Faisal highlighted the importance of lifting the heavy burden of sanctions imposed due to actions of the previous regime, noting some progress with waivers from the US and Europe.

A boy carrying stacks of bread on his head walks past a damaged school in Aleppo, Syria January 21, 2025. (Reuters)

Prince Faisal was also positive about the region as a whole, including the Kingdom.

“We are certainly in a region that is abundant with risk factors, but we are also in a region that has huge potential,” he told the panel.

“I would say that even with the very difficult year behind us, we have shown that we can be resilient as a region and we can actually look to the future, whether it’s the Kingdom, or the GCC countries, and their ability to stay on track with their economic agendas,” he added.

He stressed the importance of avoiding conflict, particularly in light of tensions between Iran and Israel, and expressed optimism regarding the new US administration under President Donald Trump.

“I don’t see the incoming US administration as contributory to the risk of war. On the contrary, I think President Trump has been quite clear that he does not favor conflict,” he said.

“I hope that the approach will also be met on the Iranian side by the addressing of the nuclear program, by being willing to engage with the incoming administration in a way that can help us stay on track with this positive momentum.”

Also on the panel was Mohammed bin Abdulrahman bin Jassim Al-Thani, prime minister and foreign minister of Qatar, who expressed hope that the ceasefire in Gaza between Israel and Hamas would bring much needed relief to the Palestinian people.

Qatar’s PM Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani speaks with WEF President and CEO Borge Brende during the annual meeting in Davos on January 21, 2025. (AFP)

“Let’s be hopeful (about the ceasefire). It’s still a long way to go with what happened throughout the last 15 months negotiating this very difficult conflict,” he said.

“It showed us that everything can be resolved through talks and through engagement, through negotiations, and we started this week with good news.

“We have seen the humanitarian aid coming in, we have seen hostages going back and we hope that this will be a fair system toward stability now.”


Saudi deputy minister meets newly appointed Bangladesh ambassador

Updated 21 January 2025
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Saudi deputy minister meets newly appointed Bangladesh ambassador

  • Al-Sati wished the ambassador success in his new role

RIYADH: Saudi Arabia’s Deputy Minister for Political Affairs Saud Al-Sati met with the newly-appointed Ambassador of Bangladesh to the Kingdom Delwar Hossain in Riyadh on Tuesday.

Al-Sati wished the ambassador success in his new role, the Foreign Ministry posted on X.

Meanwhile, Saudi Arabia’s Deputy Minister for International Multilateral Affairs Abdulrahman Al-Rassi received Ambassador of Ukraine to the Kingdom Anatolii Petrenko in Riyadh on Tuesday.

During the meeting they discussed bilateral relations and topics of common interest.

 


Saudi Shoura Council official receives Norwegian women’s rights ambassador

Updated 22 January 2025
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Saudi Shoura Council official receives Norwegian women’s rights ambassador

  • The pair discussed bilateral cooperation and explored several topics of mutual interest

RIYADH: Hanan Al-Ahmadi, assistant speaker of the Saudi Shoura Council, emphasized the positive impact of the Kingdom’s reform agenda in a meeting with Sidsel Bleken, the Norwegian Ministry of Foreign Affairs’ ambassador for women’s rights, the Saudi Press Agency reported.

Al-Ahmadi, who provided an overview of the council’s legislative and oversight functions to the visiting diplomat, lauded the achievements of Saudi women across various sectors in the Kingdom.

The pair also discussed bilateral cooperation and explored several topics of mutual interest.