Saudi workforce surges with 34% Saudization in operation and maintenance sector 

Since its inception from 2019 to 2023, the program has resulted in the employment of over 160,000 Saudi natives in the sector. Shutterstock
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Updated 14 January 2024
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Saudi workforce surges with 34% Saudization in operation and maintenance sector 

RIYADH: Saudi nationals’ participation in the workforce continues to increase, with Saudization in the operation and maintenance sector reaching 34 percent. 

This achievement, highlighted in a release by the Ministry of Human Resources, serves as a testament to the success of the Labor Localization and Maintenance Contracts service initiative.  

Since its inception from 2019 to 2023, the program has resulted in the employment of over 160,000 Saudi natives in the sector. 

Its objective is to increase the nationalization rates in public entities and enhance the efficiency and skills of Saudis. 

Efforts to ensure the success of the initiative have witnessed various developments, including the implementation of a digital service for documenting contracts in public entities. Through this service, the body can monitor the localization of employment and maintenance contracts. 

The recent decision regarding the Labor Localization and Maintenance Initiative is expected to have a broad impact, covering all establishments with agreements with government entities or where the state holds a stake of at least 51 percent. 

In December 2023, the ministry detailed a decree outlining the nationalization of various professions, such as sales, procurement, and project management, ending the previously specified grace period, as reported in a release. 

This move is part of the division’s ongoing efforts to increase the participation of Saudi nationals in the labor market and enhance their contribution to the economic ecosystem. 

The ministry stated it would require a 15 percent nationalization of sales professionals, wholesale managers, and salespeople specializing in information and communications technology equipment. 

During the Saudi Economic Association Conference in May 2023, the Minister of Human Resources and Social Development Ahmed Al-Rajhi stated that the Kingdom has helped provide job opportunities to over 500,000 regional nationals in the private sector since 2019. 

The minister added that the goals of women’s empowerment initiatives, scheduled for 2025, were achieved in 2022, with female participation in the workforce now reaching 36 percent, surpassing the 2030 target of 30 percent. 


Saudi industrial output rises 8.9% in December: GASTAT 

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Saudi industrial output rises 8.9% in December: GASTAT 

RIYADH: Saudi Arabia’s industrial production rose 8.9 percent in December from a year earlier, driven by stronger mining and manufacturing activity, signaling continued momentum in the Kingdom’s non-oil and energy sectors. 

The Industrial Production Index reached 113.6 in December, up from 104.3 a year earlier, the General Authority for Statistics said.  

The latest IPI figures underscore continued momentum in the Kingdom’s industrial sector as Saudi Arabia pursues economic diversification under its Vision 2030 agenda. 

In its latest report, GASTAT stated: “Preliminary results indicate an increase of 8.9 percent in the IPOI in December 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity and water supply, sewerage and waste management and remediation activities.”  

Mining and quarrying activity — the largest component of the index — increased 13.2 percent year on year after Saudi Arabia raised oil production to 10.1 million barrels per day from 8.9 million bpd a year earlier. Manufacturing expanded 3.2 percent, supported by a 13.4 percent rise in chemicals output and a 7.3 percent increase in food production. 

The sub-index of electricity, gas, steam and air-conditioning supply activity recorded an annual decrease of 2.5 percent. 

The sub-index of water supply, sewerage and waste management and remediation activities increased 9.4 percent. 

Compared to November, Saudi Arabia’s IPI recorded a marginal decline of 0.1 percent. 

On a monthly basis, the sub-index of mining and quarrying activity increased 0.3 percent. 

Manufacturing activities also rose 0.3 percent in December compared to the previous month, driven by a 2.8 percent increase in the manufacture of chemicals and chemical products. 

Compared to November, the manufacture of food products increased 9.6 percent in December. 

Overall, the index of oil activities advanced 10.1 percent year on year in December, while non-oil activities increased 5.8 percent. 

Compared to November, oil activities decreased 0.3 percent, while non-oil activities increased 0.4 percent. 

The IPI measures changes in industrial output based on the International Standard Industrial Classification framework and covers mining, manufacturing, utilities and waste management sectors.