- Custodian of the Two Holy Mosques King Abdullah has issued directives to speed up the effective implementation of Saudization in the private sector.
- In relation to this, I have some proposals.
To start with, my concern in this article is ensuring appropriate ground for Saudis to work in the private sector. We agree that Saudization in the private sector does not necessarily mean that Saudis need to be employed in all positions in the private sector. We have to understand that we do need non-Saudis in certain roles within the private sector.
At the outset, I note that the Saudization that has so far taken place in the private sector has been through a carrot and stick policy. We reward those who Saudize and punish those who do not respond positively by stopping them from recruiting.
However, I’ve not seen a situation in which we’ve established a working policy to encourage Saudis to come forward and take up private sector jobs. This is in spite of the need to encourage Saudis to do so. There needs to be appropriate groundwork to encourage Saudis to take up jobs in the private sector, which means highlighting that Saudis would be able to lead a decent standard of life while working in the private sector.
This standard of living does not necessarily mean living an affluent life, but rather a life in which Saudis will be able to meet their housing, healthcare and food costs.
It is, therefore, essential for us to agree that the private sector needs to do more to encourage Saudization. This is a sector that can accommodate all Saudi job seekers. Even though we strive to create the maximum job opportunities in the government sector, the number of available jobs is limited and it is impossible to accommodate the immensely large number of Saudis out there looking for jobs. The focus, therefore, needs to be on the private sector by offering incentives. At present, there is an overwhelming presence of foreigners in this sector. Replacing them with Saudis would lead to jobs for 5.3 million of our own citizens.
I would also like to express dismay at how some senior businessmen view Saudization. When they speak about the matter, they express sympathy toward jobless Saudis. Like every other segment of our society, there are different types of people among our businessmen also; there are very good, honest and sincere people among them while there are others who are jealous and dishonest.
Some businessmen consider it necessary to employ from abroad. They feel that issuing visas to hire employees from abroad allows them to compete in the global market. They also consider their successes, the Kingdom’s success. They are, therefore, of the view that it is the duty of the nation to facilitate their trade (including that of recruitment) to enable them to compete in the global market. Appealing to businessmen, hence, to implement Saudization may not be the proper way forward.
We should also, secondly, have a clear understanding about the nature of Saudi companies. For example, according to the General Organization for Social Insurance (GOSI), 88 percent of private firms employ fewer than 20 employees. This means that small enterprises form the lion’s share of the private sector. Most private firms and companies are also unstable, either in the financial or administrative levels.
We should also, thirdly, have a proper understanding about the qualifications of non-Saudis working in the private sector. According to statistics released by the Ministry of Labor in 2008, only five percent of foreign workers have some sort of undergraduate or postgraduate university qualification. It is, therefore, essential to allow Saudi job seekers to take up these jobs by giving them trainee-level jobs. It is also noteworthy to add that most jobs in the private sector only require vocational rather than academic qualifications.
These realities tell us that there is a need to change the mentality of Saudi job seekers who often compare working in the private sector with the public sector. This can only be done by changing policies concerning the way the private sector operates. Let’s take the example of duty hours. Most non-Saudis do not have the same family or financial obligations as Saudis. A Saudi cannot compete with a foreigner at a laundry. The simple reason for this is that, unlike Saudis, a foreign worker can work, eat and sleep at his workplace. Their minimum standard of living is much lower than that of a Saudi.
Therefore, it is essential to review working hours in the private sector to facilitate the entry of more Saudi job seekers. This is evident in the retail sector, which is considered the second largest sector after contracting and overwhelmingly dominated by non-Saudis.



