RIYADH, 18 January — The overall Saudization rate in the Kingdom's industrial sector is approaching 20 percent, according to a survey conducted in the Kingdom.
"Saudis are now taking up factory jobs that they previously shunned," Warren Dix, author of the book, "How Saudi Companies Pay" told Arab News.
He said that as a result of the drive, "many companies now have high Saudization rates on the shop floor as well as in the offices."
Dix pointed out that there was still a surplus of untrained Saudis with low levels of education who have difficulty in finding jobs. However, young Saudis with good educational background are eagerly sought by the industry.
Citing an example, he said companies were paying more than SR5,000 a month to fresh engineering graduates -- especially those of King Fahd University of Petroleum and Minerals -- who have good English speaking and communication skills.
"In fact, there is a shortage of skilled Saudi technical and management personnel. The arrival of more foreign companies into the Kingdom as a result of the new investment law will further increase the demand for top Saudi specialists and executives," Dix predicted.
As a result, he said, some companies here are adopting 'golden handcuffs', such as pension and stock options to keep experienced Saudis from being poached by other companies.
Another study of the small and medium industries in the Kingdom has shown that industries with foreign participation are doing a better job than wholly owned Saudi companies in terms of job creation for the Saudis.
The study by Kevin Taecker, a consultant with Enterprise KSA, reveals that every $1 million invested by a joint venture enterprise has contributed to the creation of 8.9 jobs compared to 6.4 jobs per $1 million invested by wholly-owned Saudi industries except SABIC affiliates.
The findings, published in the latest issue of London-based Saudi Review, also reveal that the capital intensive petrochemical industry creates about 1.7 jobs for every $1 million investment -- the lowest number of jobs created by an industry that accounts for 65 percent of the total capital invested in the Kingdom's 3,180 factories.
By contrast, the textile, garment and leather industry is the biggest job provider, with each $1 million investment creating about 21 jobs. The reason, according to Taecker, is that the textile industry is a family owned enterprise in which "there is nothing to prevent daughters, nieces and aunts from working alongside the men."
It is followed by the metal industry (12.5 jobs for every $1 million invested), food and beverage (8.7 jobs) and construction sector (7.8 jobs).
