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Saudization: why it is important and how to implement it

Saudization is key to running a successful business in Saudi Arabia, but what is Saudization?

Saudization is an initiative that gives Saudi nationals fair opportunities in the workforce. For companies, that means that there’s a percentage of Saudi nationals that each company must hire depending on the company’s industry and size.

Why is Saudization important for my company?

Benefits of Saudization compliance include:

  • Expedited visa processing and lower processing fees
  • The ability to easily renew Iqamas and can be done before three months of your Iqama’s expiry
  • Eligibility to switch your employee’s professions and
  • You are able to hire new employees from companies in the red and yellow categories

How do I implement Saudization?

Creating a Saudization plan will help organisations plan for the future. They should look at their recruitment strategy to determine whether they should they hire more Saudi nationals to reach the quota or wait and replace expatriates with Saudi nationals when their visas expire; or downsize the organisation, increase Saudi recruitment and outsource non-core business activities.

There are many options available for any company size and the government have developed tools such as TAQAT, the online portal that allows companies to find and hire suitable Saudi nationals. It allows companies to search through a range of candidates who may be suitable for the job and hire the best one. Or, companies can outsource their recruitment to an outsourcing provider who will find the best local talent for your company’s needs.

Many companies struggle with Saudization but it doesn’t have to be this way, with research, preparation and our help companies can reach their Saudization quotas and remain compliant.

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