Why Saudization is essential to your business’ success

Private sector companies are often confused and frustrated with the Saudization requirements, however, they can be used as an advantage. Often companies feel that local talent do not have the experience they require or that they are expensive to hire but Saudization compliance is essential to your business’ success in the Kingdom. In this article, we will break down how Saudization is crucial to your success in the Kingdom beyond the legal component.

Compliance brings benefits

The benefits provided from the government include; ability to obtain and renew work permit, hire employees from red and yellow zoned companies without company consent. Companies in the platinum and high green zones also receive expedited online processes for visas, change employee profession and more.

Saudization compliance makes your company more trustworthy

Private sector entities that achieve high levels of compliance position themselves as long-term thinkers and as a trustworthy partner. If you are at a lower level of compliance, red or yellow, there’s no guarantee that your employees can stay with you as you cannot renew visas and you cannot hire new expats. Therefore, companies in the red and yellow zones risk losing clients and relationships if their employees leave. Additionally, platinum and high-green zone companies can hire red and yellow zoned companies without company consent, therefore there’s the constant risk of losing high-performing companies. However, companies at high compliance show that they think for long term success.

Fresh and modern perspective on Saudi business

Over half the Saudi population is below the age of 30 and although companies hesitate to hire younger employees, it can be a major advantage. With the new wave of reforms in the Kingdom, the new business market will be targeted to the younger generations. Therefore, hiring younger employees or recent graduates can benefit companies in establishing their new appeal to the younger market, as well as bringing a new perspective into the workplace. Additionally, hiring employees with less experience allows companies to train them to the standard and methods that they prefer.

Saudization poses an advantage to private sector entities if they think creatively and make the most of it. It is not just a legal requirement but necessary for your business success in the Kingdom.

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