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.”

 


Date announced for Modon Excellence Award winners reveal

Updated 20 December 2024
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Date announced for Modon Excellence Award winners reveal

  • The initiative reflects Modon’s ambitions of cultivating a world-class industrial environment

RIYADH: The Saudi Authority for Industrial Cities and Technology Zones, known as Modon, has announced the winners of the Modon Excellence Award will be revealed on Dec. 22.

The initiative, under the patronage of Minister of Industry and Mineral Resources Bandar Alkhorayef, reflects Modon’s ambitions of cultivating a world-class industrial environment, embracing best practices in digital transformation, research and innovation, and promoting business sustainability.

It also aims to empower women in the workplace and enhance the leadership role of factories by adopting Fourth Industrial Revolution technologies and developing innovative products.

Deputy Minister of Industry and Mineral Resources for Human Capacity Development Faris Al-Saqabi said the Modon Excellence Award was designed to inspire positive competition among factories and individuals in the industrial sector.

He added innovation and collaboration were pivotal in driving societal progress and cultivating a sustainable, thriving industrial environment. The award highlights groundbreaking initiatives that reflect creativity and dedication while promoting innovation and raising industrial standards.

Mamdooh Al-Drees, Modon’s deputy CEO, said the award was launched to promote healthy competition within the industrial sector and encourage excellence among participants. He added it also sought to foster an environment that nurtured creativity and innovation, ultimately improving operational efficiency and boosting production.

Ultimately, it seeks to enhance the ecosystem of industrial cities and technology zones by promoting sustainable environmental practices in production, advancing adoption of cutting-edge industrial technologies, and encouraging improvements in product and service quality. It also aims to drive the integration of automation across diverse operations and processes.

The first edition of the award, launched under the theme “Makers of Excellence,” features three main categories: Individuals, with subcategories for Leadership Excellence and Promising Woman; Small Enterprises; and Medium and Large Industrial Enterprises.

These recognize excellence in several key areas including environmental sustainability, innovation and leadership in industry, digital transformation, social responsibility, and human capacity development.


Sri Lanka to build on, maintain relations with Saudi Arabia: envoy

Sri Lankan Ambassador Omar Lebbe Ameer Ajwad would like to to elevate bilateral relations with Saudi Arabia to new heights. (Ara
Updated 20 December 2024
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Sri Lanka to build on, maintain relations with Saudi Arabia: envoy

  • Sri Lanka, Saudi Arabia celebrate 50 years of diplomatic relations
  • Commemoration of anniversary will serve as a catalyst to further consolidate bilateral relations 
  • Two countries to issue a postage stamp, unveil a logo besides other cultural activities

RIYADH: Sri Lankan Ambassador in Riyadh Omar Lebbe Ameer Ajwad expressed his desire to elevate bilateral relations to new heights as Saudi Arabia and Sri Lanka celebrate 50 years of diplomatic ties.

In an exclusive interview with Arab News, Ajwad said: “Saudi Arabia and Sri Lanka are celebrating the 50th anniversary of the establishment of diplomatic relations.”

He added: “Sri Lanka and Saudi Arabia have a very long background of ties. According to the history books, it started in the seventh century … when Sri Lankan King Aggrabodhi III dispatched a delegation on a fact-finding mission to Saudi Arabia, on the request of the Arab people who were living in Sri Lanka at that time. The king sent an envoy to Madinah to learn about Islam from Prophet Muhammad.”

This ancient trade and people-to-people relationship between Saudi Arabia and Sri Lanka flourished over time. The two established formal diplomatic relations in 1974. The first Saudi ambassador to Sri Lanka was appointed in August 1977. The Sri Lanka mission was established in Jeddah in 1983. The Embassy of Sri Lanka was established in Jeddah with M.R.M Thassim as the first accredited ambassador, and shifted to Riyadh in 1985.

“We are celebrating this historic moment. It’s a milestone in our bilateral relations. We have decided on a logo to be unveiled soon to mark this occasion, both countries have agreed on that. We will soon launch it both in Saudi Arabia as well as Colombo. The logo will demonstrate the close bilateral relations,” said the ambassador.

“We will issue a postal stamp to mark the occasion. Both countries are now working on that to release a stamp to demonstrate the depth of relations,” Ajwad told Arab News.

“We also took some initiatives to mark the golden jubilee occasion such as the green initiative with the tree planting campaign in Riyadh in collaboration with the Saudi Ministry of Foreign Affairs and the Riyadh municipality — we have already planted trees in four parks with our community. It is aligned with the Saudi Green Initiative that aims to plant 10 billion trees,” he said.

“(We) also initiated planting campaign in the Sri Lankan Schools in Riyadh and Jeddah to mark the 50th anniversary,” he added.

“We initiated an Ambassadors Cup cricket tournament among our community to mark this occasion. We already had it in Jeddah, and now we have a final on Dec. 27 in Riyadh,” he said.

“We have also launched events to boost cultural cooperation between the two countries.”

Ajwad noted that Saudi Arabia under the visionary leadership of King Salman and Crown Prince Mohammed bin Salman has embarked on an ambitious Vision 2030 program.

“We witness Saudi Arabia’s fastest developments in all spheres,” he said, adding that Sri Lanka was one of the first countries which pledged support for Saudi Arabia hosting Expo 2030. He also said Sri Lanka is proud of the Kingdom winning the bid to host the FIFA World Cup in 2034.

“I believe the commemoration of the 50th anniversary of the diplomatic relations will serve as a catalyst to further consolidate our bilateral relations in all areas of mutual interest in the years ahead,” said Ajwad.

Following the commemorative year, “we are planning to initiate the first political consultation meeting between the foreign ministries of both countries, finalizing the roadmap for economic cooperation between the Ministry of Economy and Planning of Saudi Arabia and the relevant ministry in Sri Lanka, and activating the MoU on foreign investment signed this year between Sri Lanka and the Ministry of Investment of Saudi Arabia,” he added.

On diplomatic ties with Saudi Arabia, the ambassador said: “We are very closely working on all aspects.”

He added that the Saudi-Sri Lanka Joint Committee was established under the General Cooperation Agreement signed between the two countries in 2003.

The committee held its first session in 2023 in Riyadh. The Saudi delegation was led by Dr. Abdullah Nasser Abu Thnain, deputy minister of human resources and social development, while the Sri Lankan delegation was headed by Tharaka Balasuriya, former minister of state for foreign affairs.

“We have identified around 63 items for economic cooperation under the Joint Committee. We have also set up an economic roadmap under the framework of the Joint Committee,” said the ambassador.

“It’s a very promising roadmap. So we will build on the relations that we have already maintained, to elevate it to the new heights,” said Ajwad.

Saudi Arabia’s assistance to Sri Lanka is broad and diverse. The Kingdom has provided assistance to the tune of $455 million to implement over 15 development projects in education, irrigation, agriculture and road networks, including the establishment of Medical Faculty at the University of Sabaragamuwa, the development of the Wayamba University township and the Kurinchakerni Bridge project.

The Saudi aid agency KSrelief has also implemented 18 projects including shelter, food security, and humanitarian operations at a cost of more than $15 million.

Formation of a Parliamentary Friendship Committee between the two countries has further strengthened bilateral ties, said the envoy.

“We are also focused on the private sector interactions between the two countries,” he added.

Tourism is a very promising area for Sri Lanka. “We saw an increased number of Saudi tourists visiting Sri Lanka. Saudis are placed third in number of tourists visitng Sri Lanka,” said Ajwad, adding: “We are working closely on promoting tourism. It’s a promising area. We can work in the hospitality sector as well. There is a big interest.”


Saudi crown prince checks on health of Morocco’s king during phone call

Updated 20 December 2024
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Saudi crown prince checks on health of Morocco’s king during phone call

  • The king had successful surgery earlier in December

RIYADH: Crown Prince Mohammed bin Salman made a phone call on Friday to King Mohammed VI of Morocco to check on the king's health and wish him continued good health and wellbeing, the Saudi Press Agency reported.

King Mohammed thanked the crown prince for the call and kind wishes, SPA added.

The king had successful surgery earlier in December on his left shoulder after suffering a fall while working out, state media said.


Japan looks forward to strengthening relations with ‘major power’ Saudi Arabia as 70th anniversary nears

Updated 20 December 2024
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Japan looks forward to strengthening relations with ‘major power’ Saudi Arabia as 70th anniversary nears

DUBAI: Japan Foreign Minister Takeshi Iwaya told a press conference on Friday that Saudi Arabia is a “major power” in the Middle East and plays a significant role in peace and stability in the region.

“Saudi Arabia is an important country for Japan, especially when it comes to energy and security. The country is an important partner,” he said.

Responding to a question about next year’s 70th anniversary celebrations between the two countries, Iwaya explained that Japan, on a broader and deeper scope, wants to “promote cooperation and understanding” with Saudi Arabia.

Iwaya said that Japan was soliciting public proposals for commemorative events between the two countries. “Between the governments, we are moving forward with certain plans,” he added.

In October, a commemorative logo was released, which features a combination of a palm tree, a symbol of Saudi Arabia, and cherry blossoms, a flower synonymous with Japan.

The foreign minister also spoke about Japanese boxing champion Naoya Inoue’s sponsorship contract with Riyadh Season.

“(The contract) is something that we should be very happy about, we are proud of this super champion. So, we hope that he will be very active and successful in Saudi Arabia as well. We welcome this,” he told the press conference.

Inoue announced the sponsorship deal in November, which is reported to be worth about $20 million. The boxing champion will have the Riyadh Season logo displayed on the branding for his fights.

During the press conference, Iwaya also announced newly designed Japanese passports in 2025 as well as Prime Minister Ishiba Shigeru’s potential meeting with US president-elect Donald Trump.

This article originally appeared on Arab News Japan


Diriyah Season 24/25 launches celebration of history, culture and arts

Updated 20 December 2024
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Diriyah Season 24/25 launches celebration of history, culture and arts

  • Diriyah Season 24/25 will kick off with the Enduring Resilience Exhibition

RIYADH: The Diriyah Company has announced the launch of Diriyah Season 24/25, which begins on Friday, Dec. 20 with a display of Diriyah’s heritage, hospitality, and immersive cultural experiences through various programs.

Jerry Inzerillo, CEO of the Diriyah Company, said: “We anticipate welcoming three million visitors to At-Turaif district, the birthplace of the Kingdom, by Founding Day on Feb. 22, 2025.

“We are breaking records in visitor numbers and forming numerous partnerships for ground and tour operations, with new flights already arriving from countries like China. The international presence in Bujairi is evident every night, making it one of the world’s premier gathering spots.”

Under the theme “Entertain Your Cultural Curiosity,” Diriyah Season 24/25 will kick off with the Enduring Resilience Exhibition, honoring the legacy of Imam Turki bin Abdullah, who founded the Second Saudi State 200 years ago. The much-anticipated Layali Diriyah returns with innovative experiences, while Minzal invites visitors to appreciate the natural beauty and heritage of Diriyah in a winter wonderland.

Guests can engage with the “850” interactive experience, immersing themselves in the narratives of significant historical figures. The Diriyah Storytelling Festival will celebrate literature and promote cultural exchange. Additionally, the Tyn Festival will bring together architects, academics and enthusiasts to celebrate the region’s tradition of mud architecture.

In the historic At-Turaif district and Bujairi Terrace, visitors will embark on a journey filled with cultural and artistic expression. The Souq program combines performing arts with a heritage backdrop enriched by modern elements. Lastly, the Samri Art Activities will offer interactive performances of Samri folk music and dance at various locations in Diriyah throughout the season.