Saudization

Saudization in 9 Key Sectors to Take Place from August 2020 Onwards

The Minister for Human Resources and Social Development, Engineer Ahmad Al-Rajhi, had in March 2020 issued a deadline of August 20 for Saudization. The Ministry of Human Resources and Social Development will launch an investigation in Saudi Arabia on Thursday, August 20, after the deadline for 70% Saudization in nine (9) more commercial sectors expired. But what is Saudizations? What 9 more sectors are included? To know the answers, read the article below.

What is Saudization?

Saudization is a policy implemented by the Ministry of Labor in which companies are required to hire Saudi nationals on a quota basis. According to local newspaper, the Ministry of Human Resources and Social Development has said that Saudization is being implemented in various sectors to provide maximum employment opportunities to the local youth in the country.

What is the main Purpose of Saudization?

The main purpose of Saudization is to eliminate unemployment from the country and provide employment opportunities to more Saudi youth. Under the ongoing project in the country under the title of Saudization, local youths have been gradually replaced by foreign workers in various commercial sectors. The process of Saudization in the mobile phone market in the country has been completely successful. In local markets where mobile phones are sold, Saudi expats are now replaced by Saudi workers. Thus, Saudization has been practiced in many areas in the past and is continuing.



When was the First Phase of the Saudization Program Launched?

The Ministry of Human Resources and Social Development launched a phased Saudization program in various sectors earlier this year, which also set a deadline for implementation.

Which Sectors were Included in the Second Phase?

According to the program, in the second phase, 70 percent Saudization orders were issued in nine (9) sectors, including tea, coffee, honey, sugar, spices, water, beverages, vegetables, fruits, dates, flower plants, agricultural products, stationery shops, bookstores, gift shops, handicraft stores, children’s toy stores, meat, fish, cheese, eggs, vegetable oil vendors,  plastic products, cleaning supplies, wholesale and retail department included.

When is the Deadline?

The orders issued by the Ministry of Human Resources and Social Development said that 70 percent of Saudi workers should be appointed in the above-mentioned fields by 1st Muharram 1442 AH by August 20, 2020.



What Measures will be taken to Ensure the Implementation of the Law?

It may be recalled that the deadline given by the ministry expires on Thursday, August 20. In this regard, the Ministry of Manpower also intends to launch investigations in various cities of the country to ensure the implementation of the law.

The Saudi government is taking various steps to eradicate unemployment from the country. One of these steps is the implementation of Saudization. However, proper steps have been taken by the government to ensure that these laws are being implemented in the country or not. For more information and inquiry, visit our website. Stay safe. Stay tuned.

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