Localization of 600 professions in Saudi Arabia: The future of skills and Vision 2030
The Saudi labor market has witnessed radical and historic transformations thanks to the ambitious localization strategies led by the Ministry of Human Resources and Social Development. These strategies are no longer merely temporary regulatory measures, but have evolved into a comprehensive national project aimed at restructuring the national economy. These efforts recently culminated in expanding localization to include more than 600 career paths, opening up vast opportunities for male and female graduates to contribute to building the Kingdom's future.
From Scopes to Specific Localization: The Context of Transformation
To understand the significance of this step, one must consider the historical context of labor policies in the Kingdom. After years of relying on the "Nitaqat" system, which initially focused on quantitative quotas, the Ministry has moved to a phase of "qualitative localization." This phase targets specialized and leadership professions with high added value, rather than simply filling basic administrative positions. This shift reflects a more mature strategic planning approach, aligning educational outcomes with actual market needs and ensuring job sustainability rather than just temporary employment.
Record numbers and unprecedented female participation
These policies have yielded tangible results, reflected in the numbers. The private sector has recorded a historic increase in the number of employed Saudis, reaching over 2.5 million citizens. Perhaps the most significant achievement is the qualitative leap in Saudi women's participation in economic development, with their percentage rising from 23% in 2019 to over 35% currently. This rapid growth confirms the success of empowerment programs and the removal of obstacles that previously hindered women's employment, thus significantly increasing the size of the productive national workforce.
Targeted sectors and their economic impact
Current localization initiatives focus on vital sectors that form the backbone of the modern economy, such as healthcare, engineering, technology, accounting, and procurement. Localizing these professions not only contributes to reducing unemployment rates but also enhances the Kingdom's economic security by relying on national talent to manage critical facilities and digital infrastructure. Furthermore, the direct salaries paid to citizens increase domestic purchasing power, positively impacting the internal economic cycle.
Implementation mechanism and support for the private sector
Recognizing the challenges employers may face, the Ministry adopted a phased implementation approach, granting establishments sufficient grace periods to adjust their operations, while issuing detailed procedural guidelines for each decision. In parallel, the Human Resources Development Fund (HRDF) offers packages of financial incentives and training and development programs to ensure that Saudi employees are the first and best choice for the private sector, not only through the strength of the regulations but also through their competence and skills.
These rapid steps come as a practical translation of the objectives of the Kingdom’s Vision 2030, specifically the Human Capability Development Program, which seeks to build a globally competitive citizen and establish a prosperous economy based on knowledge and innovation by the hands of the sons and daughters of the nation.
