Launched under the umbrella of Saudi’s Vision 2030, the Saudi Nationalization scheme (often referred to as Saudization) aims to create improved job opportunities for Saudi nationals, subsequently reducing the unemployment rate. In August 2020, under this initiative, the Ministry of Human Resources and Social Development announced the localization of 20% of the 117 engineering fields available in the country. According to the latest news on Saudization plans, the Kingdom of Saudi Arabia (KSA) plans to implement it at the beginning of 2021.
The government made this move intending to offer fair employment opportunities for local engineers and secure future opportunities that might be available to those currently pursuing engineering degrees. According to predictions, the Saudization of engineering jobs will create as many as 7,000 positions, each with a minimum remuneration of SAR 7,000 per month.
As the cost of living is escalating with each passing year, the KSA government believes that the localization of private-sector jobs can enable Saudi nationals to keep up with the cost of living. The labor market, now tainted with the misgivings of 2020’s events, will also see a revival owing to this move. With the localization of 117 engineering fields, the Ministry of Human Resources and Social Development plans to strengthen the private sectors, aiding the Saudi Vision 2030 initiative.
This rule will apply to private establishments employing five or more engineering professionals. Establishments with four or fewer foreign engineers will be exempt from this Saudization rule. As per the legalization put forward by the Ministry of Human Resources and Social Development, organizations that violate the Saudization law will be levied with hefty fines and might risk losing out on government services. In a bid to aid private establishments fulfill the Saudization criteria, the government will offer support and incentive packages that will allow them to recruit Saudi engineers, train them, and ensure career stability.
These rules will not apply to an individual if:
- An engineer working in the private sector has a salary of less than SAR 7,000 registered with Social Insurance.
- An engineer is not accredited by the Saudi Council of Engineers.
To avoid violating this government regulation, establishments will need to ensure that at least 20% of those employed in the engineering profession are Saudi nationals. Understanding the urgency of the situation and the need for organizations to make swift decisions, Proven will help clients fulfill their engineers’ Saudization requirements.
As part of Proven’s Outsourcing (PEO) service, clients can now choose from candidates from a pool of engineers to work with their organization. Proven ensures that the engineering professionals available for hire are Saudi nationals, aptly qualified for the job, and have acquired professional accreditation from the Saudi Council of Engineers. Walking synchronically with the government, the Proven team has made sincere efforts to create a pool of Saudi nationals with engineering professions, help reduce unemployment, support private-sector jobs, and create opportunities for Saudi nationals with the right skill set. Proven will also assist clients in recruiting engineers as per their criteria and conduct meticulous background checks.
The task of hiring Saudis internally for specific roles has posed a big challenge for private organizations. In this event, Proven is helping balance the scale by outsourcing expatriates and Saudi nationals as per Saudization. Recent updates have also encouraged Proven to outsource accounting and IT professionals of Saudi nationality to help clients maintain their Saudization requirements.