Workforce localization in the Kingdom of Saudi Arabia: Issues and challenges

Abstract

This paper provides an overview and analysis of the ‘localization’ of human resource capital in the Kingdom of Saudi Arabia referred to as the ‘Saudization’. It attempts to critically review the key initiatives undertaken by the government and its stakeholders for the workforce localization in the Kingdom. It examines the Saudization process initiated in the Saudi public and private sectors and its efficacy in dealing with the challenges of replacement of the expatriate workforce and the skill development strategy. There is a strong need to adopt a comprehensive human resource development (HRD) framework to develop local employees and aligning it with the demands of the job market. A holistic Saudization policy is needed which can bridge the gap of talent and skills required after the removal of the expatriate workers. A multi-pronged approach involving all stakeholders can help Saudi firms in dealing with the emergent business challenges in the present global scenario.