First, what is meant by the recently spread term “Saudization”?

Saudization in the Kingdom of Saudi Arabia means replacing a foreign worker with a Saudi worker, especially in private sector jobs. This concept appeared in 1975 when unemployment spread among Saudi citizens, and it was noted that there was one Saudi worker for every three foreign workers in the labor market at that time.

Based on the above, many Saudi experts believed that implementing “Saudization” would be a radical solution to the unemployment problem in the Kingdom. Thus, in 2018, a Cabinet decision was issued that limited sales outlets to about 12 professions to employ only Saudi workers.

Ministry of Labor in Saudi Arabia

What is the difference between Saudization and localization?

Some may think that Saudization and localization are one concept that both serve the same purpose, but in reality there is a fundamental difference between them.

The term Saudization concerns the number and quantity of Saudi workers in an organization, regardless of the skills and qualifications of these workers, or the type of jobs they work in.

As for the concept of nationalization, it is concerned with the type of jobs that Saudis work in, and it also focuses on qualifying the Saudi worker to become qualified for his job by training him and providing him with the experience and skills necessary for the job.

What professions are allowed for foreigners in Saudi Arabia 2021?

Other than the professions for which a decision has been made to be Saudized, foreign workers have the right to work in all other jobs, such as the non-Saudis professions for which foreign workers are allowed to be brought in. These are some leadership jobs that require specific experience and skill, including:

  • General accountant job
  • Sales manager job
  • Vendor jobs
  • Purchasing representative jobs
  • Nurses
  • Warehouse keeper job
  • Account Manager position
  • Medical secretary job
  • Executive Secretary position
  • Accounts clerk job
  • Barber job.
  • Amusement park maintenance worker job.
  • Cleaner job
  • Loading and unloading workers job

What are the expected professions for the year 1442 AH/2021? 

The Saudization of professions in the Kingdom of Saudi Arabia began in several stages – the most prominent of which was issued in 2018 – with the aim of providing diverse job opportunities for citizens, in addition to reducing unemployment rates in the Kingdom.

Up to the latest decisions issued in August 2021, the currently approved professions and commercial activities can be listed, namely:

  • Security employee
  • Government relations officer
  • Director of Personnel Affairs
  • Director of Personnel
  • Director of Human Resources
  • Government accountant
  • Customs officials
  • Complaints clerk
  • Personnel Clerk
  • Personnel writer
  • General reception clerk
  • Hotel receptionist
  • Patient reception clerk
  • Professions related to the education sector
  • Law sector professions

As for the most important commercial activities and sectors that have been Saudized, they are as follows:

  • Men’s and children’s clothing stores
  • Building and reconstruction materials stores
  • Office and home furniture stores
  • Housewares stores
  • Watch and eyewear stores
  • Sweets and carpet stores
  • Outlets selling medical devices and equipment
  • Electronic devices sales outlets
  • Auto parts sales outlets
Promised professions

What are the professions whose Saudization has been postponed?

The Saudization of some jobs whose performance requires some special skills has been postponed, and they can be known through the Saudi Labor Office’s list of professions for foreigners 2021, namely:

1- Director of the foreign sales outlet

The decision to Saudize this position has been postponed for an additional year, as only one manager is allowed to postpone the Saudization of his position; This is provided that the number of Saudi workers in the sales outlet is not less than 10 workers per shift, and the company is required to have an assistant for this manager to replace him later.

2- Cleaning workers and loading and unloading workers

It must be taken into account that the number of cleaning and loading workers does not exceed one worker in the facility, so that the percentage of foreign workers does not exceed 20%.

3- Health sector workers

The Saudization of the professions of health workers in sales outlets has been postponed, especially those who have a license from the Ministry of Health, such as a technician or optometrist.

4- Craftsmanship 

Craft jobs are still classified as underprivileged professions, such as maintenance technicians, tailors, chefs, and car mechanics.

What are the decisions to localize professions for the year 2021 issued by the Saudi Ministry of Labor?

The Saudi Minister of Labor – Engineer Ahmed bin Sulaiman Al Rajhi – recently issued three ministerial decisions regarding the nationalization system in a number of professions and commercial activities, noting that these decisions entail providing thousands of distinguished job opportunities for citizens, and organizing the Saudi work environment to achieve the required productivity.

The new decisions included 6 different sectors, most notably: engineering, dentistry, accounting, pharmacy, communications and information technology. In addition, what was issued by the Saudi Ministry of Human Development can be summarized as follows:

  • Restricting Saudis from working in professions and activities in closed commercial complexes, with some exceptions.
  • The localization of Saudi workers in restaurants is 40%, while the localization of cafes in closed malls is 50%.
  • Priority will be given to Saudi cadres in administrative affairs positions in the complexes.
  • Localization of professions for Saudis in major food supply and financial markets.
Saudi Labor Office professions for foreigners 2021

When will these decisions take effect?

The ministerial decisions were issued on August 25, 2021, and all of them will enter into force within 120 days from the date of the announcement, i.e. December 25, 2021.

In addition, after implementing the nationalization rates in the stipulated establishments, violations of this decision are calculated on the basis of:

  • Failure to adhere to the nationalization rate specified for each sector.
  • Employing non-Saudi workers in Saudi Arabian and nationalized professions.
Saudization is a solution to reduce unemployment

What is the parallel localization service? How can I apply for it?

The Human Resources Authority launched a parallel Emiratisation service for business owners, in order to achieve the highest Emiratisation rates by providing support to private sector establishments that include 50 workers or more. 

Those in charge of the service worked to provide the service on the official website of the Saudi Ministry of Labor, and training courses and programs are provided in the parallel nationalization service, based on the number of cadres that the institution needs.

What are the professions allocated to increase the nationalization rates of Saudis in 2021?

After announcing an increase in Emiratisation rates in closed complexes, outlets in restaurants and cafes, in addition to major catering centres, we will present the most prominent professions that have been traded and announced:

  • Restaurant Manager
  • Cafe manager
  • Exhibition Director
  • Assistant commercial manager
  • Internal sales manager
  • Director of Marketing
  • Customer Service Manager
  • Retail Supervisor
  • Accounting funds supervisor

What is the impact of Saudization on the real estate market in Saudi Arabia?

Although the real estate market is the second largest economic field in the Kingdom, it was greatly affected by the Saudization decision, and the reason for this is the replacement of the Saudi worker with the foreign worker, which led to the return of foreign workers to their country, and then selling their homes, real estate, or even Leaving rented homes.

Moreover, it is expected that there will be a decrease in real estate prices by 15% to 20%, due to the increased supply of real estate such as (residential units, shops, or companies) and the decrease in demand for them, as the latest statistics were as follows:

  • In 2017, about 466,000 expatriates who occupied 1.7 million housing units left the Kingdom.
  • In 2018, more than 234,000 foreign workers left.
  • In 2020, more than 317,000 foreign workers left.
  • In 2021, approximately 137,000 foreign workers left in the first quarter.
Citizenship is one of the solutions to unemployment

In conclusion, foreign labor opportunities still exist in the Kingdom, according to what has been announced regarding non-Saudizational professions and professions whose Saudization has been postponed. The Kingdom also seeks to create an equal work environment between nationalization and benefiting from the expertise of foreigners in Saudi Arabia.

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