Saudization is thus an important national and social undertaking that empowers citizens in the Kingdom to participate in the growth and progress of their country.
The nationalization of jobs, particularly those in the private sector, uplifts the value of citizenship. It also creates more job opportunities for Saudis, which translates to a stronger local economy.
In the past, Saudi Arabia used to hire Arab and international expertise to make up for a lack of local technical and managerial skills and an educated workforce. Today however, the Kingdom is home to many highly educated professionals and local talents who require nurturing, in addition to graduates who are capable of working in various sectors.
Since 1975, the Kingdom has launched a number of serious attempts to implement an effective system of Saudization through five-year plans in response to increasing unemployment and the huge influx of employable Saudis. These initiatives have been faced with many problems and challenges that have limited their expected success.
The demographic and economic changes that have taken place over the past few decades have led to favorable conditions for successful Saudization, especially within the government sector. A strong voice is being raised demanding private companies to hire Saudis to quell unemployment especially among university graduates. The government has also developed specific targets and mechanisms for guaranteeing the achievement of targets and goals to ensure the success of Saudization.
Saudization does not pose an obstacle to foreign companies operating in Saudi Arabia as well-trained and experienced Saudi talents are available for various fields. The process also does not mandate the private sector to replace its entire staff with Saudis, because the Kingdom understands the value of non-Saudi workers in particular aspects of its development.
Moreover, Saudization is not an urgent requirement imposed by economic conditions. It should thus be regarded as a natural progression within the framework of a national plan for developing and investing in national human resources. It keeps pace with and complements the national agenda for comprehensive social and economic development.
The private sector has become the main target for Saudization, as it represents the favored destination of new members of the Saudi workforce. Government jobs, regardless of the numbers, will remain limited and cannot be expected to absorb the stream of Saudis entering the local job market. The business strategy should therefore focus on the private sector and how to stimulate it to accommodate Saudis.
Khaldoun Tabari, CEO of Drake & Scull International, says: “Ensuring the success of Saudization in the private sector requires certain general requirements, such as the development of curriculums and training and study programs meeting the actual needs of the labor market, as well as advanced mechanisms for linking the education and training system to the business sectors and adding flexibility and speed in the development processes with a focus on the practical and professional aspects. Effective approaches toward the development and training of employment-seeking graduates — with the active participation of business enterprises - are urgently needed.”
These efforts should focus on identifying the needs of businesses in order to link qualifications with employment opportunities, developing systems for use in the local labor market, and introducing mechanisms and regulations from the private sector. They should facilitate the direct provision of information services to job seekers that relay job vacancies, and criteria and conditions of employment. In addition, Saudization efforts should clearly reflect the commitment of private sector businesses to hire specific percentages of Saudi workers and increase the figure annually, he added.
“Businesses must carefully plan and implement programs to restructure and develop human resource management systems to ensure that their capabilities are in harmony with new demands and challenges, including Saudization,” Tabari said.
Members of the Saudi private sector are well aware of the importance of Saudization and have developed integrated programs and plans to translate the concept into a concrete action plan. Drake & Scull International, for one, extends its full support to the Saudi Government’s efforts toward the nationalization of jobs in the private sector. Drake & Scull International acknowledges the positive impact of this approach on the economy and on reducing unemployment among Saudi youths.
Drake & Scull International has voiced its commitment to helping grow the national economy by employing a good number of Saudi citizens within its workforce. The company intends to provide its Saudi personnel with opportunities such as training on modern techniques in construction, contracting and integrated engineering services to meet the technical requirements and professional needs of current and future projects in the Kingdom.
Saudi Arabia’s construction and contracting sector can contribute more to the process of Saudization in light of the substantial government budget dedicated for infrastructure work.
Drake & Scull International has managed to double the value of its Saudi projects and contracts over the past year to reach SR 2.4 billion , with its completed acquisition deals expected to promote its growth rates in all cities and provinces across the Kingdom in 2012. This will require the hiring of more qualified Saudi nationals.
So far, Drake & Scull International has completed several Saudi projects such as the InterContinental Hotel, the Convention Center in Riyadh, the Tabarjal Hospital, the Faculty of Health and Hospital at Mina, and the King Abdullah University of Science and Technology. In 2010, the company secured contracts for developing a series of projects worth AED 1.2 billion in total involving Mechanical, Electrical and Plumbing (MEP), Civil Contracting, and Water & Power, most notably the Jawharah Tower in Jeddah.
In 2011, the company signed up for the construction of the SR 2 billion King Abdullah Petroleum Studies and Research Center (KAPSARC) in Riyadh. Saudi Arabia, remains the largest market for the company, as it is the region’s most prepared construction destination.
Drake & Scull International expects the implementation of several major projects in the Kingdom this year.
The Saudi construction sector will continue to take the lions’ share of the volume and value of contracts to be awarded across the region within the next four years, thus creating promising opportunities for the development of the capacities of the Saudi youth and the advancement of Saudization overall.