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Saudi Arabia expands localization to new sectors to develop talent

The sectors include project management and procurement, and sales, among others.

Saudi Arabia expands localization to new sectors to develop talent
[Source photo: Anvita Gupta/Fast Company Middle East]

After implementing the localization of customer services sectors across all the regions and of postal and parcel services last year, Saudi Arabia is expanding its Saudization drive to new professions and activities. 

According to the Ministry of Human Resources and Social Development (MHRSD), the new sectors include project management, procurement, and sales; outlets providing services for shipping activities and freight brokerage; and outlets for décor and women’s tailoring. 

With the goal of job creation for citizens in the country, the ministry announced that at least 50% of procurement professions in the kingdom are localized, as well as 15% of the sales profession, 50% of engineering and technical professions for medical devices, and 80% of sales, advertising, and promotion of medical appliance and supplies. In addition, 50% of senior management professions in postal and parcel transportation activities have also been localized, including limiting the profession of CEOs to Saudis. 

For project management professions, 35% have been localized, with a minimum wage of $1,559.

In cooperation with the Ministry of Transport and Logistics, the ministry and the General Transport Authority implemented Saudization in 14 activities that cover outlets providing freight activities and freight brokers, plus administrative jobs of all outlets for women’s decoration and sewing services. The regulation also appointed one Saudi female worker in technical professions.  

A range of incentives is offered to private sector entities that hire Saudis, including support and employment programs through the Human Resources Development Fund.

In February, the Cabinet, chaired by King Salman bin Abdulaziz Al Saud, announced the framework for granting incentives for the Saudization of priority goods and services under the Vision 2030 strategy. 

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