How Saudi Arabia’s nationalization quota aims to deepen the Kingdom’s tech talent pool

Special How Saudi Arabia’s nationalization quota aims to deepen the Kingdom’s tech talent pool
The number of tech jobs held by Saudi nationals is projected to grow, with measures aimed at generating more than 8,000 engineering roles. (Shutterstock)
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Updated 15 August 2024
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How Saudi Arabia’s nationalization quota aims to deepen the Kingdom’s tech talent pool

How Saudi Arabia’s nationalization quota aims to deepen the Kingdom’s tech talent pool
  • Engineering firms in the Kingdom are now required to hire at least 25 percent of their staff from the local population
  • Recruiters say the new policy makes a holistic approach to training, incentives and career progression imperative

DUBAI: Behind Saudi Arabia’s showpieces of infrastructure, towering skyscrapers and ambitious giga-projects is an army of highly skilled engineers who deal with the nuts and bolts, as it were, of the Kingdom’s Vision 2030 transformation.

Many of the engineering jobs since the start of the oil boom have been held by expatriates, who came to Saudi Arabia to make a good living on the strength of technical knowledge and skills picked up in their home countries and experience gained while working on engineering projects there.

To ensure that the Kingdom’s transformation is authentically Saudi as well as to create attractive job opportunities for nationals, the Ministry of Human Resources and Social Development announced last month a 25 percent quota for nationals in engineering professions.

The policy is targeted at private-sector firms that employ five or more engineers. The move will therefore have the added bonus of growing the Kingdom’s private sector, in turn helping to diversify the economy away from reliance on hydrocarbons.

According to the Saudi Council of Engineers, there are currently 448,528 engineers, technicians and specialists working in the Kingdom, with Saudis making up 34.17 percent of this number.

The number of jobs and the proportion of them held by Saudi nationals are projected to grow, with measures aimed at generating more than 8,000 engineering roles and an additional 8,000 positions in technical engineering fields.

Marwa Murad, managing director and founder of Maximiliano Development Management Services, believes the Kingdom can boost the localization of its technical workforce while maintaining economic stability and growth by implementing several strategies.

Establishing comprehensive training and development programs tailored to the specific needs of the engineering and tech sectors was essential, she told Arab News.

“By investing in vocational training and higher education partnerships with universities, the government can equip Saudi citizens with the necessary skills and knowledge to excel in engineering roles,” Murad said.

Encouraging partnerships between educational institutions and private sector companies is another strategy. Such programs can create an ecosystem that supports practical training and enhances internship opportunities for students.

Additionally, said Murad: “These collaborations can ensure that graduates are job-ready and familiar with the demands of the engineering field.”

Ali Nasir, managing director and partner at recruitment agency GRG, believes investment in science, technology, engineering and mathematics programs — known collectively as STEM — is another effective approach to boosting Saudization in the field.

“This includes significant investments in top-tier educational programs, providing scholarships and financial assistance, and facilitating mentorship and internship opportunities for the youth,” Nasir told Arab News.

Nasir also believes that cultivating a culture of entrepreneurship within the tech sector is desirable in order to encourage young Saudis to start their own tech ventures, which in turn will boost the private sector and promote organic job creation.

“This not only highlights the potential of STEM fields but also significantly contributes to advancing the nation’s economic development,” he said.

Along with educational partnerships, Murad says more needs to be done to address the lack of women in the Saudi engineering sector — a field traditionally dominated by men.

Promoting gender inclusivity in engineering can significantly broaden the talent pool, she said: “Initiatives that support women in engineering, such as mentorship programs and flexible working conditions, can help increase female participation in the workforce.”

Currently, women represent just 3.19 percent of the total number of Saudi engineers and technicians in the sector, while men make up the remaining 96.81 percent.

To address this imbalance, an initiative launched in April aims to increase the number of women in engineering by providing female Saudi engineers with training under the supervision of Aviation Australia and the International Aviation Technical College at Riyadh Airport.

This followed a memorandum of understanding signed in August between the Kingdom’s newest national carrier, Riyadh Air, and the Colleges of Excellence — an institution established by the Vocational Training Corp. in Saudi Arabia to nurture local talent.

The program, which represents the first of many collaborations, includes Saudi high-school graduates with impressive GPAs selected from thousands of applicants.

To actively improve diversity and inclusion in the sector, Riyadh Air’s first intake of trainee engineers from the apprenticeship program was made up entirely of women.

“Campaigns highlighting success stories, benefits of engineering professions and available support programs can stimulate interest among the youth,” said Murad.

Reflecting on progress in the Saudi engineering sector, Nasir from GRG said the profession had become an increasingly popular career path among Saudi men and women over the past 20 years, thanks in part to several state initiatives.

“The government proactively carries out career fairs, spotlights successful Saudi engineers as role models, and is building up a supportive environment for engineering startups,” he said.

Among the key initiatives introduced by the government is the Nitaqat Program, which categorizes companies based on the proportion of Saudis on their payroll. Those that score highly are offered benefits such as easier access to work permits for expatriates and eligibility for government contracts.

Additionally, the Human Resources Development Fund provides financial incentives for companies that implement training programs for Saudi nationals. The government also boosts programs tailored to generate job opportunities in high-demand sectors, facilitating effective job matching for Saudi citizens.

“It’s all about making engineering a go-to choice for the youth, while offering support and showcasing the benefits,” said Nasir.

Murad believes more can be done to move beyond simply enforcing Saudi quotas for companies and instead inspire locals to pursue STEM fields and recognize the opportunities offered by a career in engineering.

This includes initiating national campaigns to shift cultural perceptions about engineering. Moreover, she said, educational reforms should focus on experiential learning and critical thinking to make STEM subjects more engaging.

Currently, companies that achieve or surpass Saudization targets may receive tax benefits and reduced government service fees, helping to mitigate hiring costs. Similarly, initiatives to assist small and medium-sized enterprises include access to funding and mentorship.

“Supportive policies and incentives for companies investing in talent development, rather than just meeting quotas, can foster a more effective approach to Saudization,” said Murad.

Localization quotas have had mixed results across various Gulf countries. In nations like the UAE and Qatar, the policy has successfully increased the employment of local talent engineering.

These countries have effectively implemented initiatives to develop national skills through targeted training programs and educational reforms.

“As a result, there is a growing presence of skilled local professionals in industries that were traditionally reliant on expatriate workers,” Murad said.

However, these have not been without their challenges. “Some Gulf countries experienced an initial rise in local employment figures, but the retention of these employees remained a concern,” she said.

Contributory factors include the competitive job market, salary disparities, and the preference for expatriates who may have more practical experience in specific roles.

This has led some local professionals to seek opportunities abroad or in sectors that offer better compensation and career growth, she added.

Echoing Murad’s views, Nasir also believes quotas alone may not be enough to ensure sustainable workforce localization. He referred to Oman’s Omanization program as one that has seen moderate success, particularly in banking.

Likewise in Bahrain, Bahrainization has notably improved local employment, especially in engineering. Meanwhile, Kuwait’s Kuwaitization efforts have been less effective, with the private sector still largely dependent on foreign workers.

To ensure positive outcomes for Saudization, Murad believes crucial lessons can be drawn from the experiences of other Gulf countries.

She feels the effectiveness of localization quotas hinges on several factors, including the alignment of educational programs with market needs, the availability of mentorship and career development opportunities, and a shift in workplace culture toward inclusivity.

“Emphasizing continuous professional development and creating clear career pathways can enhance the long-term success of localization efforts,” she said.

“While localization quotas can drive significant progress in employing local talent, their effectiveness depends on a holistic strategy that addresses market realities, supports continuous learning, and enhances the overall appeal of career opportunities in STEM fields for Saudi nationals.”

 


Finance minister highlights Kingdom’s social security milestones at Riyadh forum

Finance minister highlights Kingdom’s social security milestones at Riyadh forum
Updated 18 sec ago
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Finance minister highlights Kingdom’s social security milestones at Riyadh forum

Finance minister highlights Kingdom’s social security milestones at Riyadh forum
  • Al-Jadaan said that the Kingdom is a leading model in developing a robust social insurance system, a key pillar of Saudi Vision 2030

RIYADH: The Regional Social Security Forum for Asia and the Pacific opened in Riyadh on Tuesday, under the patronage of Mohammed Al-Jadaan, minister of finance and chairman of the General Organization for Social Insurance.

Organized every three years by the International Social Security Association, the forum addresses future challenges and opportunities in social security.

It aims to strengthen strategic partnerships and facilitate the exchange of experiences in various sectors.

Mohammed Azman, President of ISSA, spoke at the opening of the Regional Social Security Forum for Asia and the Pacific in Riyadh on Tuesday. (Supplied/GOSI)

Al-Jadaan said that the Kingdom is a leading model in developing a robust social insurance system, a key pillar of Saudi Vision 2030.

“In recent years, we have launched innovative initiatives and services to enhance social protection and ensure financial and living stability for the community,” he said.

He also highlighted the merger of the Public Pension Agency and the General Organization for Social Insurance to unify systems, streamline policies, and strengthen financial sustainability.

Crowd of interested individuals and specialists attended the opening of the Regional Social Security Forum for Asia and the Pacific in Riyadh on Tuesday. (Supplied/GOSI)

The total assets of the organization, after merging with the PPA, exceed SR1.2 trillion ($319 billion), Al-Jadaan added.

He also pointed to the Citizen Account Program, which supports Saudi families against the economic effects of reforms, with total aid exceeding SR222 billion since its launch.

“Collaboration among government institutions has led to the launch of several digital platforms, enhancing citizen services. This effort positioned the Kingdom fourth globally in the E-Government Development Index, first regionally, and second among G20 nations,” he said.

Al-Jadaan said that Riyadh has become a global hub for gatherings and a leading platform for international cooperation, where key issues are addressed and solutions proposed for today’s challenges.

Mohammed Azman, president of the ISSA, said: “Today we gather in Riyadh, a city steeped in history yet looking boldly to the future. This forum is not just another meeting; it is a testament to our shared commitment to innovation, inclusion, and resilience in insurance protection.”

Abdulaziz Alboug, governor of GOSI, said that during the COVID-19 pandemic, Saudi Arabia supported more than 480,000 employees with $2.5 billion through the SANED program. Additionally, 12 million workers benefit from the Occupational Hazards Branch.

The organization invested in digital infrastructure, completing 130 million electronic operations this year and securing second place in the Digital Experience Maturity Index. The organization prioritizes innovative insurance solutions for citizens, residents, and visitors, he added.

Amr Kurdi, assistant governor for financial sustainability and risk management at GOSI, said that social insurance implements strategies to address challenges and risks in insurance systems. It follows a systematic approach to managing investment funds, with a specialized team ensuring optimal returns to support financial sustainability.

Marwan Al-Ghamdi, assistant governor for strategy and transformation at GOSI, highlighted the opportunity to expand insurance coverage, particularly with the growing number of young workers. He emphasized the continuous evolution of insurance systems to enhance pension efficiency and provide optimal protection for participants and their families, aligning with labor market changes.

Abdulmohsen Al-Khalaf, vice minister of finance, said that social insurance is a vital component of the social protection system, offering financial support to private sector and government employees covered by labor laws, ensuring their insurance protection after service completion.

Ahmed Al-Omran, assistant governor for IT at GOSI, said that artificial intelligence is transforming work processes, recently surpassing doctors in diagnostic accuracy tests. However, AI also contributes to job losses, which the SANED program addresses by supporting the unemployed.

He also said that Saudi Arabia’s centralized database enhances personalized services and helps entrepreneurs provide tailored solutions to clients.

 


Ticket to great urban living in the Kingdom’s capital

Ticket to great urban living in the Kingdom’s capital
Updated 03 December 2024
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Ticket to great urban living in the Kingdom’s capital

Ticket to great urban living in the Kingdom’s capital
  • Quality of Life Program CEO Khalid Al-Baker said that the Riyadh Metro is a significant step toward enhancing quality of life in the Kingdom’s capital
  • Headway between trips on the Riyadh Metro is less than ‘a few minutes,’ says official

RIYADH: Riyadh’s new metro system will offer time-efficient transportation to all segments of society, the CEO of the Saudi Quality of Life Program has said.

The working hours of the Riyadh Metro begin daily from 6 a.m. until midnight, with multiple trips operating around the clock on each of the six metro lines.

The headway between each train at a station does not exceed “a few minutes,” said Salem Al-Omair, manager of the Yellow Line.

“There are several ways to purchase tickets, including ticket vending machines available at the stations, where passengers can choose the appropriate package and obtain a Darb card. Tickets can also be purchased at the information desks located within the stations,” Al-Omair told Arab News.

The capacity of the trains is similar, ranging between 240 and 260 passengers per trip. Riyadh Metro, a key pillar of Saudi Vision 2030, is a crucial step toward reducing traffic congestion in Riyadh, he said.

Quality of Life Program CEO Khalid Al-Baker told Arab News that the Riyadh Metro is a significant step toward enhancing quality of life in the Kingdom’s capital. It diversifies public transportation options and promotes a culture of using mass transit, thereby reducing excessive reliance on private vehicles.

The project also helps ease road congestion and provides a fast, time-efficient transportation solution at prices accessible to various segments of society, he added.

The metro will enhance Riyadh’s appeal and drive urban development in areas surrounding stations. Additionally, it will facilitate access to the capital’s major destinations through comfortable and efficient transportation options, Al-Baker said.

The project, which was inaugurated by King Salman, is providing job opportunities, and is expected to play a larger role in the future in enhancing the appeal of Riyadh and supporting the achievement of Saudi Vision 2030 goals, he added.

The first three lines of the Riyadh Metro opened on Dec. 1, forming part of the largest urban railway network in the Middle East.

The first phase of the Riyadh Metro starts with three lines: The Blue Line, connecting Olaya Street to Al Batʼha; the Yellow Line, running along King Khalid International Airport Road; and the Purple Line, covering Abdul Rahman bin Awf Road and Al-Shaikh Hassan Bin Hussain Street.

The Red Line, covering King Abdullah Road, and the Green Line, spanning King Abdulaziz Road, are both scheduled to open on Dec. 15, while the Orange Line, which covers Madinah Road, begins operations on Jan. 5.

The total length of Riyadh Metro’s six lines covers 176 km, including 85 stations, with four primary stations.

The Orange Line is the longest in the Riyadh Metro project, extending about 41 km. It is followed by the Blue Line, the backbone of the whole project as it connects with all other lines over a length of 38 km.

The Green Line along King Abdulaziz Road is about 13 km long, while the Red Line on King Abdullah Road stretches almost 25 km. As for the Purple and Yellow lines, they are about 28 and 29 km long, respectively.

The Riyadh Metro was launched 12 years after the project was announced in April 2012, when the Saudi Cabinet approved the implementation of the public transport project and formed a high-level committee to oversee it.

The contracts for the Riyadh Metro project were awarded in 2013 to three global consortiums, with a total value of about $22.5 billion.

The project features several sustainable characteristics that promote eco-friendly transportation options. The metro system employs energy-efficient trains and stations, as well as technologies like regenerative braking to reduce energy consumption.

Additionally, some stations will be equipped with thousands of solar panels, and each metro station will rely on electricity sourced from renewable energy along the six lines.


Coalition denies allegations of handing over Houthi leader's brother's body

Coalition denies allegations of handing over Houthi leader's brother's body
Updated 03 December 2024
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Coalition denies allegations of handing over Houthi leader's brother's body

Coalition denies allegations of handing over Houthi leader's brother's body

The official spokesman for the coalition forces, Brigadier General Turki Al-Maliki, refuted on Tuesday claims regarding the handover of the body of a Houthi leader's brother.

In a press statement, Al-Maliki emphasized that the coalition treats the issue of prisoners, detainees, and the recovery of fighters' bodies as a strictly humanitarian matter. He urged all parties to refrain from politicizing such issues.

Al-Maliki described the Houthi leader's allegations, which were circulated by Houthi-affiliated websites, as inaccurate and lacking credibility. He clarified that the process of recovering and handing over bodies occurred in June 2023. During this operation, the coalition recovered the remains of nine Saudi soldiers and 20 Yemeni army personnel, while returning the bodies of 57 Houthi fighters killed along the border.

He further stated that such misleading claims may have been made for internal reasons related to the Houthis. Al-Maliki also noted that the name mentioned in the Houthi statement was not included in negotiations to recover bodies and suggested it is possible the individual in question was killed in regional conflicts unrelated to the coalition.


Kingdom reaffirms disability support on global day

Kingdom reaffirms disability support on global day
Updated 03 December 2024
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Kingdom reaffirms disability support on global day

Kingdom reaffirms disability support on global day

RIYADH: The Saudi Authority for the Care of People with Disabilities on Tuesday reaffirmed the Kingdom’s commitment to supporting individuals with disabilities — helping them achieve their aspirations, improving their quality of life, removing barriers to their potential and ensuring their full integration into society.

The World Health Organization, along with global partners, marks the International Day of Persons with Disabilities on Dec. 3 to promote the rights and well-being of persons with disabilities.

To observe this day, the Saudi authority launched a campaign raising awareness about invisible disabilities, such as psychological challenges, sensory difficulties, mild motor impairments and other often overlooked conditions.

The campaign aims to increase societal awareness of the challenges faced by individuals with invisible disabilities, promote a more inclusive society, and highlight the importance of fostering an environment that empowers these individuals to navigate their daily lives with equal opportunities.

Such campaigns are vital in strengthening the role of disabled persons, improving services, raising awareness of their rights and supporting their path to success, the authority said.

This year’s theme, “Amplifying the leadership of persons with disabilities for an inclusive and sustainable future,” highlights their vital role in creating an inclusive world and stresses their involvement in decisions affecting their lives.


Saudi project clears 618 Houthi mines in Yemen

Saudi project clears 618 Houthi mines in Yemen
Updated 03 December 2024
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Saudi project clears 618 Houthi mines in Yemen

Saudi project clears 618 Houthi mines in Yemen

RIYADH: Members of Saudi Arabia’s Project Masam removed 618 explosive devices from various regions of Yemen last week.

The total included one anti-personnel mine, 23 anti-tank mines and 594 unexploded ordnances, according to a recent report.

Ousama Al-Gosaibi, the initiative’s managing director, said a total of 471,034 mines had been cleared since its inception in 2018.

The explosives were planted indiscriminately and posed a threat to civilians, including children, women and the elderly.

The demining operations took place in Marib, Aden, Jouf, Shabwa, Taiz, Hodeidah, Lahij, Sanaa, Al-Bayda, Al-Dhale and Saada.

The initiative trains local demining engineers and provides them with modern equipment. It also offers support to Yemenis injured by the devices.

Teams are tasked with clearing villages, roads and schools to facilitate safe movement for civilians and the delivery of humanitarian aid.

About 5 million people have been forced to flee their homes since the start of the conflict in Yemen, many of them displaced by the presence of land mines.