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.”

 


Saudi minister visits Kuwait to pass on Saudi leaders’ condolences after royal’s death

Saudi minister visits Kuwait to pass on Saudi leaders’ condolences after royal’s death
Updated 18 September 2024
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Saudi minister visits Kuwait to pass on Saudi leaders’ condolences after royal’s death

Saudi minister visits Kuwait to pass on Saudi leaders’ condolences after royal’s death
  • Prince Abdulaziz bin Saud conveyed the messages of sympathy to Kuwait’s emir and the country’s prime minister

KUWAIT: Saudi Arabia’s interior minister, Prince Abdulaziz bin Saud visited Kuwait on Wednesday to convey to the country’s emir, Sheikh Meshal Al-Ahmad Al-Sabah, the condolences of King Salman and Crown Prince Mohammed bin Salman following the death last week of Sheikh Bader Nasser Al-Hamoud Al-Jaber Al-Sabah.
Prince Abdulaziz also offered the Saudi leaders’ condolences to Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, the Saudi Press Agency reported.
The officials who welcomed the minister included Kuwait’s deputy prime minister, the minister of defense and the minister of interior.
Sheikh Bader, a member of the Kuwaiti royal family, died on Sept. 10 at the age of 70.


Saudi Arabia and Italy share vision for future

Saudi Arabia and Italy share vision for future
Updated 18 September 2024
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Saudi Arabia and Italy share vision for future

Saudi Arabia and Italy share vision for future
  • Lombardy president highlights similarities between Saudi Arabia and Italy
  • Culture sector offers ‘highway of collaboration’ for countries, says Italian ambassador

RIYADH: Italy and Saudi Arabia share similar visions for the future, according to the president of the Lombardy region.

Attilio Fontana and his delegation expressed confidence in the potential for stronger cooperation during their visit to Saudi Arabia on Tuesday.

They aimed to explore new opportunities with Saudi officials and engage with Italian companies at the Interior Design and Furniture Exhibition in Riyadh on Tuesday.

“I believe that between Italy and Saudi Arabia, it’s possible to work very heavily together. And I think that we can engage,” Fontana told Arab News.

“The important thing … in Italy and in Saudi Arabia, is a view of the future, a vision of the future that is very similar. So, on this object, we can work together.”

Highlighting the significance of Italian participation at the exhibition in Riyadh, Fontana said: “You know, I believe that it’s very important for our entrepreneurs to know this merchant (Saudi Arabia) and to have the possibility to come here and to export because your country is very similar to our region.”

Ambassador of Italy to Saudi Arabia Carlo Baldocci also attended the exhibition.

“Italy is the second (largest) number of exposures in the firm, which means that there is a huge potentiality for stronger collaboration,” he said. “It looks very interesting and very promising; a lot of new companies are coming from Italy.”

“A big group of companies was also present last year in the past editions and the fact that Italians are increasing their numbers means it is very significant to us,” the ambassador said.

Baldocci underlined the importance of Fontana’s visit to Riyadh for Saudi-Italian cooperation: “It is very important; Lombardia is a model, a significant model also for Italy and Europe.

“We can establish strong collaboration in many fields, bilateral on both sides, so there would be advantages for the Italian side and Saudi side; it’s a win-win situation.”

Asked about sectors for growing partnerships between Saudi Arabia and Italy, he said: “I see many areas of technology, from high technology to fashion, design, automotive.

“On the cultural field, there is a highway of collaboration between Lombardia in Italy and Saudi Arabia, and in many other sectors too,” he said.

The president of Lombardia and the ambassador of Italy toured the exhibition areas and met Italian company representatives during the exhibition.

Among the more than 78 Italian companies present at the exhibition were Chairs and More, AMG, ArcaHorn, MIDJ, Vigano, Zanetto, and many others.

Discussing the many Italian companies showcased at the exhibition, Romano Baruzzi, director of the Riyadh office of the Italian Trade Agency, said: “All of the sectors are represented.”

Baruzzi said that while many Italian companies were already active in the Saudi market and had established local partnerships, several were still seeking to explore new avenues for growth in their collaborations.

“It’s a good opportunity if you consider that this is the fourth edition in terms of growth and the presence of companies; it’s a very big number,” he said.

Baruzzi said that some of the feedback he had received from Italian companies indicated that they were aware of the continuing expansion of Riyadh.

“I think we can offer very good opportunities for the Italian companies here,” he said.

Fontana, along with his delegation, will hold multiple sideline meetings with Saudi officials in culture, fashion, technology and innovation during the visit to the Kingdom.

The INDEX exhibition, focusing on interior design, takes place from Sept. 17-19 at the Riyadh Front Exhibition Center, welcoming local and international participants to showcase the latest innovations in design.


Saudi Development and Reconstruction Program for Yemen rehabilitates 650 homes in Aden

Saudi Development and Reconstruction Program for Yemen rehabilitates 650 homes in Aden
Updated 18 September 2024
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Saudi Development and Reconstruction Program for Yemen rehabilitates 650 homes in Aden

Saudi Development and Reconstruction Program for Yemen rehabilitates 650 homes in Aden
  • “Decent Housing” project contributes to building the capacity of workers in the housing, construction and building sectors
  • The first of its kind in the housing sector in Yemen, the project aims to provide suitable living conditions for families

RIYADH: The Saudi Development and Reconstruction Program for Yemen’s “Decent Housing” project has benefited nearly 900 families by rehabilitating 650 housing units in Aden’s Al-Mualla and Khor Maksar districts.
A tripartite partnership between SDRPY, Alwaleed Philanthropies and the UN Human Settlements Program (UN-Habitat), the project has also contributed to building the capacity of workers in the housing, construction and building sectors, the Saudi Press Agency reported on Wednesday.
A ceremony was held at SDRPY’s Riyadh-based headquarters to celebrate the conclusion of the project, which aims to improve the living conditions of families in Yemen’s Aden governorate.
Alwaleed Philanthropies’ Secretary-General Princess Lamia bint Majed Al-Saud, Supervisor-General of the Program Mohammed bin Saeed Al-Jaber, and Minister of Public Works and Roads Salem Al-Abboudi attended the celebration.
Minister of Planning and International Cooperation Dr. Waed Badhib, UN-Habitat’s Chief of Staff Dr. Irfaan Ali, and Regional Representative Rania Headeya participated via video link.
The Decent Housing project, the first of its kind in the housing sector in Yemen, aims to provide suitable living conditions for Yemeni families. It also offers thousands of job opportunities and hundreds of training opportunities, deepening the impact of such projects that contribute to sustainable development.
SDRPY has implemented development projects and initiatives in essential and vital sectors, including education, health, water, energy, transportation, agriculture and fisheries, and the development and support of the Yemeni government’s capabilities, across 14 Yemeni governorates.


Environment Fund partners with ROSHN to drive sustainable building innovation

Environment Fund partners with ROSHN to drive sustainable building innovation
Updated 18 September 2024
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Environment Fund partners with ROSHN to drive sustainable building innovation

Environment Fund partners with ROSHN to drive sustainable building innovation
  • ROSHN aims to develop more than 400,000 energy-efficient homes in pedestrianized communities

RIYADH: Saudi Arabia’s Environment Fund on Wednesday signed an agreement with the Public Investment Fund-owned developer ROSHN to stimulate investment and boost research into sustainable building practices.

The agreement focuses on exploring sustainability in building designs, improving building standards, and introducing incentives to encourage environmental development practices.

The memorandum of understanding also aims to build upon the relationship between both parties, working toward the common goal of achieving environmental sustainability.

Both ROSHN and the Environment Fund will work together to improve awareness about environmental issues, according to the Saudi Press Agency.

Fawaz Al-Enezi, vice president of marketing and communications, signed on behalf of the Environmental Fund, while Wassim Khashan, executive general manager of marketing, signed for ROSHN Group.

Also on Wednesday, ROSHN signed another MoU with the National Center for Vegetation Cover Development and Combating Desertification, pledging to work together to increase vegetation cover and combat desertification.

The agreements were signed on the sidelines of the opening of the ROSHN Green Initiative Center in Riyadh.

The center will have a tree nursery that will produce greenery for ROSHN communities and surrounding areas.

The center will also have an educational hub that will be open to the public, offering interactive learning sessions for members of the public and organizations interested in supporting the Kingdom’s sustainability programs.

According to the company, ROSHN’s Green Initiative has so far produced more than 32,000 seedlings, 25,000 mangrove trees, and 4,300 other trees planted across the Kingdom.

More than 3,000 volunteers and 75 schools were enlisted to help achieve these results.

When fully operational, the center is set to be able to produce around 2,000 trees per year.

ROSHN is a major developer that was launched as part of Vision 2030, aiming to develop more than 400,000 energy-efficient homes in pedestrianized communities.

Tasked with developing a number of housing projects around the country, ROSHN espouses a particular focus on improving the quality of living for residents.

The Environment Fund was established in 2019 to provide financial support to environmental and meteorological initiatives.


KSrelief delivers 25 ambulances to Ukrainian Health Ministry

KSrelief delivers 25 ambulances to Ukrainian Health Ministry
Updated 18 September 2024
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KSrelief delivers 25 ambulances to Ukrainian Health Ministry

KSrelief delivers 25 ambulances to Ukrainian Health Ministry
  • Delivery is part of a larger commitment of 125 vehicles aimed at supporting the country’s healthcare system
  • Ambulances were officially delivered to the Ukrainian authorities by the director of KSrelief’s health and environmental aid department Dr. Abdullah Al-Muallem

RIYADH: Saudi aid agency, KSrelief, has supplied 25 ambulances to the Ukrainian Ministry of Health.

The delivery is part of a larger commitment of 125 vehicles aimed at supporting the country’s healthcare system. They will be handed over in Poland ready to travel over the border.

The ambulances were officially delivered to the Ukrainian authorities by the director of KSrelief’s health and environmental aid department, Dr. Abdullah Al-Muallem. Also present was Mohammed Rashid Al-Hadithi, the Kingdom’s deputy ambassador to Poland.

The initiative forms part of Saudi Arabia’s ongoing humanitarian and relief efforts. Medical and shelter supplies, along with electrical devices and generators, were also delivered by 21 aircraft.

In addition, the Kingdom has pledged $400 million in humanitarian aid to Ukraine. This includes $100 million from KSrelief and $300 million in oil derivatives financing, offered as a grant.

KSrelief has also signed two agreements with the World Health Organization and the UN Refugee Agency to provide $10 million in medical and shelter aid to Ukrainian refugees in neighboring countries, particularly Poland.