The Saudi Nationalization Program, also known as Nitaqat, aims to transform the national workforce and reinforce economic growth.
This transformative strategy, launched by the Saudi Ministry of Labor in 2011, makes it mandatory for companies to hire a set quota of Saudi nationals to address employment challenges.
Empowering Saudis
The main focus of Nitaqat Program is to increase the Saudi employees’ participation in the private sector and to reduce the employment gap with the public sector.
This objective comes in line with the ambitious Saudi Vision 2030, that aims to empower Saudis and bolster their participation in the private sector. This, in turn, will reduce dependance on oil revenue and promote sustainable economic development.
Nitaqat Program
Since its implementation in 2011, Nitaqat Program has made remarkable accomplishments towards increasing the number of Saudi nationals in the private sector. According to the latest figures released by the National Labor Observatory, the number of Saudi nationals working in the private sector in June reached 2.34 million, accounting for an increase of 16,598 since April.
This achievement is supported by proactive measures taken to promote Saudization, such as regulatory frameworks that incentivize companies to hire and retain local talent. Therefore, the private sector has witnessed a shift towards hiring Saudi skilled employees who have a deep understanding of local culture and business practices.
Nitaqat Notable Milestones
Nitaqat Program has played a pivotal role in enhancing participation in the Saudi labor market. Saudi-based economist Talat Hafiz highlighted the contributions of Nitaqat to the Saudi workforce.
“Nitaqat and Nitaqat Mutawar programs have improved the performance of the labor market through providing appropriate job opportunities for the Saudi national labor force in a safe and attractive working environment,” he told Arab News.
Similarly, Ahmed Boshnak, partner at Bain and Co., emphasized the significance of the Program in empowering Saudi nationals. “One significant contribution of Saudization is the enhancement of local talent development. Through Saudization, there is a focused effort on education and vocational training programs that align with market needs,” he said.
Boshnak added: “This equips Saudi nationals with the necessary skills to participate in various sectors, thus increasing their employment prospects and career advancement opportunities.”
Boosting Workforce
Saudi Arabia is gearing up for a projected substantial influx of new graduates into the labor market, which could reach 5 million by 2030. At the same time, the Saudi government is working to create 3 million new jobs in the private sector over the next 10 years. These efforts bolster the Kingdom’s commitment to sustainable economic growth and cutting unemployment rates.
Hiring Saudi nationals under Nitaqat Program has enormous benefits as it harnesses local expertise to address business challenges effectively. Owing to their proficiency in Arabic and familiarity with local culture and resources, Saudi nationals have the ability to manage streamlined operations and enhance organizational dynamism.
With regards to this, Hafiz said: “Saudi nationals have proven their capabilities in the local labor market because they better understand the culture of the Saudi labor market and they have proven to be very hard workers.”
Hafiz believes that in the long run, hiring a Saudi national “could be more effective and less costly to the businesses since businesses can avoid labor’s cost related to hiring non-Saudis.”
Productive Work Environment
Nitaqat Program integrate Saudi talents into the workforce. In turn, this bolsters a sense of national pride and ownership and, as a result, contribute to creating a more cohesive and productive work environment.
With respect to this, Boshnak said: “Saudization encourages private and public sector collaboration. The initiative requires companies to invest in local talent, promoting policies that support the hiring, training, and retention of Saudi nationals.”
He told Arab News: “This not only drives employment but also fosters a culture of inclusivity and sustainability within the workforce, leading to long-term economic stability.”
Saudi National Day
Empowering Saudi nationals through Nitaqat, or Saudization program, is a key aspect of Vision 2030. The Kingdom is making notable progress towards achieving economic diversification and global competitiveness. Boosting a skilled workforce will further establish the Kingdom as a hub for innovation, entrepreneurship and technological advancement in the MENA region and the world.
On September 23, the Kingdom will celebrate these impressive achievements in conjunction with the 94th Saudi National Day. It is an annual commemoration of the unification of the nations of Najd and Hijaz into the Kingdom of Saudi Arabia in 1932.
The Saudi National Day celebrations feature fireworks, parades, music shows, and festivals. As part of the festivities, Saudi streets are adorned with Saudi flags, buildings are lit up in green color, and people wear Saudi traditional outfit.
