Saudization in seven private sectors exceed 50%

The percentage is calculated on the basis of the private sector workers who are registered at the General Organization for Social Insurance (GOSI).

Riyadh: The percentage of Saudization (the percentage of Saudis out of total employment) in seven economic activities of the Saudi private sector exceeded 50 percent at the end of the third quarter of the year 2020, according a local newspaper report said.

According to the Saudi Gazette, The list of the seven economic activities include: financial and insurance activities at the level of localization of 83.6 per cent, public administration, defense, and mandatory social insurance with 71.9 per cent, activities of foreign organizations and bodies 71.5 per cent, in addition to mining and quarrying activities 63.2 per cent, education 52.9 per cent, information and communication 50.7 per cent, and supplies electricity, gas, steam and air conditioning, with a localization rate of 50.6 per cent.

On the other hand, Saudization in the sectors of agriculture, forestry, fishing, construction, administration, and support services activities and the activities of the least settled households came at rates of 15.5 per cent, 13.5 per cent, 12 per cent and 11.4 per cent, respectively.

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The rate of Saudization in the Saudi private sector as a whole at the end of the third quarter of 2020 is about 23.8 per cent, where the number of Saudi workers is 2.03 million, out of a total of 8.5 million workers in the private sector, while non-Saudi workers constitute 76.2 per cent and the number of 6.48 million workers.

The percentage is calculated on the basis of the private sector workers who are registered at the General Organization for Social Insurance (GOSI).

The Kingdom recently has approved the implementation of a decision to localize professions in restaurants, cafes, hypermarkets and malls.

Earlier, the Kingdom had decided to localize 30 per cent accounting jobs in private sectors and 28 professions in the air transport sector.

It may be mentioned that many Middle East countries including Kuwait, Oman, and Saudi Arabia are trying to increase employment opportunities for their citizens by putting caps or legislative hurdles for expats.

What is Saudization?

Officially known as Nitaqat, under this policy by the ministry of labor and social development, Saudi companies and enterprises are instructed to hire locals instead of expats.

Saudi political elites favor the policy whereas, businessmen oppose it.

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