Saudi local talent participation in the workforce will receive a boost as the Ministry of Human Resources and Social Development launched a new nationalization initiative.
Effective Dec. 24, a decree has been detailed, outlining the nationalization of various professions, including sales, procurement and project management, ending the previously specified grace period, as reported in a release.
This move is part of the ministry’s ongoing efforts to raise Saudi nationals’ participation 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 of information and communications technology equipment.
Meanwhile, the benchmark for localization of procurement professionals is 50 percent.
This position includes procurement manager and specialists, contracts and tender experts.
The decree further outlines the localization of project management professions in the first phase by 35 percent. It includes project management specialists, business services and communications project managers.
The department affirmed that it would provide incentives and support to enable the private sector and aid them in employing Saudi nationals.
It includes assisting in attracting and identifying suitable employees, supporting training and qualification initiatives, and facilitating the recruitment process and career progression.
Additionally, it will allow companies to benefit from all nationalization support programs available in the ministry’s system and programs provided through the Human Resources Development Fund.
The ministry issued a guide explaining the details of the decisions to localize professions and the implementation mechanism. Emphasis has been placed on the need for establishments to adhere to the provisions to avoid the statutory penalties that will be applied against violators.
In July, the department announced that it would launch a service to monitor the localization of employment and maintenance contracts in public entities under the Labor Localization and Maintenance Initiative.
The endeavor aims to raise the nationalization rates in public entities and increase the efficiency and skills of Saudis.
The initial phase kicked off for large establishments on Dec. 1. The second stage is slated to commence on Jun. 1, 2024, focusing on medium-sized organizations. The third stage encompasses all other establishments set to take effect from Dec. 1, 2024.—AN
