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Saudi Arabia targets 75% localization in energy sector

Energy Minister Abdulaziz bin Salman highlighted a global low of 15% female participation in the energy sector, emphasizing an opportunity to address this gender gap.

Saudi Arabia targets 75% localization in energy sector
[Source photo: Pankaj Kirdatt/Fast Company Middle East]

Saudi Arabia is committed to strengthening its workforce by prioritizing local employment across diverse sectors. The country offers incentives and support to private enterprises through various initiatives to streamline recruitment processes via the human resources and social development system.

Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, unveiled a program to localize 75% of jobs within the energy sector. The announcement came during the Human Capacity Initiative, where Prince Abdulaziz emphasized the sector’s potential to surpass Saudization goals compared to other industries.

He cited global statistics showing women’s participation in the energy sector at only 15%, emphasizing an opportunity to address this disparity.

The minister emphasized the importance of collaboration with other entities for success, urging joint efforts with the Ministry of Education, training institutions, and other government agencies. This collaborative approach focuses on building capabilities, retaining employees, and empowering women.

“We have a committee with representatives from various government agencies, and each team will work on research and development efforts, and there are also teams working on professional training,” Prince Abdulaziz explained.

This initiative builds upon recent Saudi Arabian efforts to increase local sector participation. In January, the kingdom mandated a 25% localization rate for engineering jobs in all private companies with at least five engineers. This measure, overseen by the Ministry of Municipal, Rural Affairs, and Housing, aims to enhance workforce participation and specialization in engineering professions.

Additionally, in December 2023, Saudi Arabia announced plans to localize insurance sales jobs, with a complete transition set for April 15, 2024. These measures are accompanied by various support programs for private sector establishments, including recruitment assistance and access to training programs offered by the Human Resources Development Fund.

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