Obligating the private sector to train graduates: Details and conditions
The Ministry of Human Resources and Social Development in Saudi Arabia issued a significant ministerial decree aimed at enhancing the efficiency of the national workforce. The decree mandates that private sector establishments with 50 or more employees provide vocational training opportunities for graduates and job seekers. This step is part of a comprehensive strategy to improve the readiness of Saudi youth to enter the labor market and equip them with the necessary practical skills.
Details of the decision and the implementation mechanism
Under the new decision, targeted establishments are required to train a minimum of 2% of their total workforce annually. The Ministry has set clear timeframes for these training programs, stipulating that the training period must be no less than two months and no more than six months. To guarantee the rights of all parties, the Ministry has mandated that training contracts be officially documented through the "Qiwa" platform. These contracts must include precise details covering the type of skills targeted, the training phases, and the rights and obligations of both the trainee and the establishment.
Context of the decision and Vision 2030
This decision is not an isolated measure, but rather comes within the context of the major economic transformations the Kingdom is undergoing as part of Vision 2030, specifically the Human Capital Development Program. Through these regulations, the Kingdom aims to bridge the gap between educational outcomes and the actual needs of the labor market. Historically, labor markets have faced challenges related to a lack of practical experience among new graduates. This requirement aims to transform private sector workplaces into training incubators that contribute to honing the soft and technical skills of citizens, thus enhancing their future employment prospects.
Regulations for large establishments and documentation
Taking into account the nature of large companies, the decision set a specific limit for establishments with 5,000 or more employees, requiring them to train 100 trainees annually, without obligating them to increase this number regardless of their workforce size. The decision also mandates that establishments provide trainees with a "training completion certificate" upon completion of the program, detailing the skills acquired, thus adding value to their resumes.
Expected economic and social impact
This decision is expected to have a broad and positive impact at both the local and national levels. Economically, it will contribute to increased private sector productivity by providing a skilled national workforce capable of adapting quickly to the work environment. Socially, it will help reduce unemployment rates by transforming job seekers into qualified professionals with the practical experience required for most jobs today, thus strengthening market stability and supporting qualitative, not just quantitative, localization plans.
The ministry called on all establishments to review the procedural guide available on its website to understand all the details and comply with the decision, stressing its determination to follow up on implementation to ensure the achievement of the desired national goals.
