How Saudi Arabia’s nationalization quota aims to deepen the Kingdom’s tech talent pool

The number of tech jobs held by Saudi nationals is projected to grow, with measures aimed at generating more than 8,000 engineering roles. (Shutterstock)
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Updated 15 August 2024
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How Saudi Arabia’s nationalization quota aims to deepen the Kingdom’s tech talent pool

  • Engineering firms in the Kingdom are now required to hire at least 25 percent of their staff from the local population
  • Recruiters say the new policy makes a holistic approach to training, incentives and career progression imperative

DUBAI: Behind Saudi Arabia’s showpieces of infrastructure, towering skyscrapers and ambitious giga-projects is an army of highly skilled engineers who deal with the nuts and bolts, as it were, of the Kingdom’s Vision 2030 transformation.

Many of the engineering jobs since the start of the oil boom have been held by expatriates, who came to Saudi Arabia to make a good living on the strength of technical knowledge and skills picked up in their home countries and experience gained while working on engineering projects there.

To ensure that the Kingdom’s transformation is authentically Saudi as well as to create attractive job opportunities for nationals, the Ministry of Human Resources and Social Development announced last month a 25 percent quota for nationals in engineering professions.

The policy is targeted at private-sector firms that employ five or more engineers. The move will therefore have the added bonus of growing the Kingdom’s private sector, in turn helping to diversify the economy away from reliance on hydrocarbons.

According to the Saudi Council of Engineers, there are currently 448,528 engineers, technicians and specialists working in the Kingdom, with Saudis making up 34.17 percent of this number.

The number of jobs and the proportion of them held by Saudi nationals are projected to grow, with measures aimed at generating more than 8,000 engineering roles and an additional 8,000 positions in technical engineering fields.

Marwa Murad, managing director and founder of Maximiliano Development Management Services, believes the Kingdom can boost the localization of its technical workforce while maintaining economic stability and growth by implementing several strategies.

Establishing comprehensive training and development programs tailored to the specific needs of the engineering and tech sectors was essential, she told Arab News.

“By investing in vocational training and higher education partnerships with universities, the government can equip Saudi citizens with the necessary skills and knowledge to excel in engineering roles,” Murad said.

Encouraging partnerships between educational institutions and private sector companies is another strategy. Such programs can create an ecosystem that supports practical training and enhances internship opportunities for students.

Additionally, said Murad: “These collaborations can ensure that graduates are job-ready and familiar with the demands of the engineering field.”

Ali Nasir, managing director and partner at recruitment agency GRG, believes investment in science, technology, engineering and mathematics programs — known collectively as STEM — is another effective approach to boosting Saudization in the field.

“This includes significant investments in top-tier educational programs, providing scholarships and financial assistance, and facilitating mentorship and internship opportunities for the youth,” Nasir told Arab News.

Nasir also believes that cultivating a culture of entrepreneurship within the tech sector is desirable in order to encourage young Saudis to start their own tech ventures, which in turn will boost the private sector and promote organic job creation.

“This not only highlights the potential of STEM fields but also significantly contributes to advancing the nation’s economic development,” he said.

Along with educational partnerships, Murad says more needs to be done to address the lack of women in the Saudi engineering sector — a field traditionally dominated by men.

Promoting gender inclusivity in engineering can significantly broaden the talent pool, she said: “Initiatives that support women in engineering, such as mentorship programs and flexible working conditions, can help increase female participation in the workforce.”

Currently, women represent just 3.19 percent of the total number of Saudi engineers and technicians in the sector, while men make up the remaining 96.81 percent.

To address this imbalance, an initiative launched in April aims to increase the number of women in engineering by providing female Saudi engineers with training under the supervision of Aviation Australia and the International Aviation Technical College at Riyadh Airport.

This followed a memorandum of understanding signed in August between the Kingdom’s newest national carrier, Riyadh Air, and the Colleges of Excellence — an institution established by the Vocational Training Corp. in Saudi Arabia to nurture local talent.

The program, which represents the first of many collaborations, includes Saudi high-school graduates with impressive GPAs selected from thousands of applicants.

To actively improve diversity and inclusion in the sector, Riyadh Air’s first intake of trainee engineers from the apprenticeship program was made up entirely of women.

“Campaigns highlighting success stories, benefits of engineering professions and available support programs can stimulate interest among the youth,” said Murad.

Reflecting on progress in the Saudi engineering sector, Nasir from GRG said the profession had become an increasingly popular career path among Saudi men and women over the past 20 years, thanks in part to several state initiatives.

“The government proactively carries out career fairs, spotlights successful Saudi engineers as role models, and is building up a supportive environment for engineering startups,” he said.

Among the key initiatives introduced by the government is the Nitaqat Program, which categorizes companies based on the proportion of Saudis on their payroll. Those that score highly are offered benefits such as easier access to work permits for expatriates and eligibility for government contracts.

Additionally, the Human Resources Development Fund provides financial incentives for companies that implement training programs for Saudi nationals. The government also boosts programs tailored to generate job opportunities in high-demand sectors, facilitating effective job matching for Saudi citizens.

“It’s all about making engineering a go-to choice for the youth, while offering support and showcasing the benefits,” said Nasir.

Murad believes more can be done to move beyond simply enforcing Saudi quotas for companies and instead inspire locals to pursue STEM fields and recognize the opportunities offered by a career in engineering.

This includes initiating national campaigns to shift cultural perceptions about engineering. Moreover, she said, educational reforms should focus on experiential learning and critical thinking to make STEM subjects more engaging.

Currently, companies that achieve or surpass Saudization targets may receive tax benefits and reduced government service fees, helping to mitigate hiring costs. Similarly, initiatives to assist small and medium-sized enterprises include access to funding and mentorship.

“Supportive policies and incentives for companies investing in talent development, rather than just meeting quotas, can foster a more effective approach to Saudization,” said Murad.

Localization quotas have had mixed results across various Gulf countries. In nations like the UAE and Qatar, the policy has successfully increased the employment of local talent engineering.

These countries have effectively implemented initiatives to develop national skills through targeted training programs and educational reforms.

“As a result, there is a growing presence of skilled local professionals in industries that were traditionally reliant on expatriate workers,” Murad said.

However, these have not been without their challenges. “Some Gulf countries experienced an initial rise in local employment figures, but the retention of these employees remained a concern,” she said.

Contributory factors include the competitive job market, salary disparities, and the preference for expatriates who may have more practical experience in specific roles.

This has led some local professionals to seek opportunities abroad or in sectors that offer better compensation and career growth, she added.

Echoing Murad’s views, Nasir also believes quotas alone may not be enough to ensure sustainable workforce localization. He referred to Oman’s Omanization program as one that has seen moderate success, particularly in banking.

Likewise in Bahrain, Bahrainization has notably improved local employment, especially in engineering. Meanwhile, Kuwait’s Kuwaitization efforts have been less effective, with the private sector still largely dependent on foreign workers.

To ensure positive outcomes for Saudization, Murad believes crucial lessons can be drawn from the experiences of other Gulf countries.

She feels the effectiveness of localization quotas hinges on several factors, including the alignment of educational programs with market needs, the availability of mentorship and career development opportunities, and a shift in workplace culture toward inclusivity.

“Emphasizing continuous professional development and creating clear career pathways can enhance the long-term success of localization efforts,” she said.

“While localization quotas can drive significant progress in employing local talent, their effectiveness depends on a holistic strategy that addresses market realities, supports continuous learning, and enhances the overall appeal of career opportunities in STEM fields for Saudi nationals.”

 


Makkah deputy governor honors winners on final day of 6th Crown Prince Camel Festival

Updated 12 September 2024
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Makkah deputy governor honors winners on final day of 6th Crown Prince Camel Festival

  • 107 elite camels competed on Wednesday in the final 4 races of the month-long event in Taif
  • The festival had a total prize pool of more than SR57 million

RIYADH: The deputy governor of Makkah Region, Prince Saud bin Mishaal, honored the winners of the sixth Crown Prince Camel Festival on the final day of the event in Taif on Wednesday.

The competitive action on the closing day featured four 6-kilometer races contested by 107 elite camels from several countries in the Gulf region.

In the first race, in the general Zamoul category, a camel called Madhaal claimed victory in a time of 9 minutes, 13.419 seconds, earning a cash prize of SR1 million ($267,000) for Saudi owner Hafeez Saeed Al-Marri.

The second race, in the open Zamoul category, ended with Barzan, belonging to Al-Shahaniya Camels from Qatar, taking the SR1 million prize in a time of 9:22.023.

Al-Dheeb, a Camel belonging to to Al-Siliya camels in Qatar, triumphed in the general Heil category in a time of 9:09.218 to secure the SR1.5 million prize.

And in the final race, in the open Heil category, Rahiya, another Al-Shahaniya camel, was the winner in a time of 9:06.368, also earning a SR1.5 million prize.

The total prize pool for the festival totaled more than SR57 million, which was shared by the local and international owners of winners in the various race categories.

Prince Abdulaziz bin Turki, the Saudi minister of sport and president of the Saudi Olympic and Paralympic Committee, thanked Crown Prince Mohammed bin Salman for his generous patronage of the festival.

He said this support reflected the unwavering commitment of the crown prince to the development and advancement of sport in the Kingdom, and in particular his dedication to the preservation of camel racing as a cherished tradition and integral part of Saudi heritage.

The festival began on Aug. 10 with preliminary rounds featuring 350 races. This was followed by an 11-day finals phase that featured 239 races in various categories, beginning with a marathon consisting of five stages.

The sixth staging of the festival coincided with the designation of 2024 as the “Year of the Camel” in Saudi Arabia, a celebration that recognizes the deep cultural significance of the animal in the Kingdom.


Saudi AI company implements 4-day working week

Updated 11 September 2024
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Saudi AI company implements 4-day working week

  • Approach maintains full salaries, aims to boost job satisfaction

MAKKAH: Lucidya, a Riyadh-based artificial intelligence and customer experience company, has become the first private entity in the Kingdom to implement a four-day working week.

The approach maintains full salaries and does not increase daily working hours. It aims to boost employee well-being, productivity and job satisfaction.

Abdullah Asiri, Lucidya’s CEO, told Arab News that the decision reflected the company’s commitment to fostering innovation and cultivating an exemplary workplace environment.

He said: “At Lucidya we have been embracing unconventional work methods since our inception in 2016.

“We were early adopters of remote working and eliminated traditional time-tracking systems. Our philosophy centers on achievement rather than hours logged. We believe productivity is not constrained by working hours but by individual achievements.”

The decision to transition to a four-day week has led to notable results, he added.

Asiri said: “We have noticed increased enthusiasm and task completion since implementing this system, with no decline in performance.

“We believe a flexible working environment fosters innovation and creativity. Our team deserves full trust and support to achieve even greater successes.”

Asiri stressed that the new work model would not affect client services, adding: “This shift will enhance our commitment to service standards and continuous support.”

The CEO revealed that the decision was facilitated by the company’s existing work culture.

“Our employees already demonstrate a high commitment to achievement, unrestricted by time or location,” he said.

He added that Lucidya’s automated productivity measurement system and focus on output-based performance created a conducive environment for the bold move.

Elaborating on Lucidya’s work philosophy, Asiri said: “We have moved beyond the need for physical presence in the office or adherence to fixed daily hours.

“What matters is the quality and quantity of work delivered, regardless of where it is done.”

Asiri looks to a workplace in which employees are self-aware, aligned with the company’s methodology, and possess a strong sense of belonging.

He said: “In such an environment, everyone becomes proactive, takes initiative, and goes the extra mile for organizational success.”

Asiri said that those who underperformed while working would do so regardless of hours or strict attendance monitoring. 

Lucidya, which employs about 150 people and operates in the AI, customer experience, and marketing technology sectors, serves major corporations and government entities across 11 countries.

Asiri shared insights on the company’s transition to a four-day working week and its initial impact, saying: “We began psychological preparation early.”

This transition, initiated in August, started with two departments, following careful observation of team stability and performance metrics.

The new schedule, which gives employees Thursday through to Saturday off, aims to provide extended weekends, especially benefiting those commuting from different cities.

Asiri said employee response had been overwhelmingly positive, and added: “Beyond the obvious elation, we have seen a surge in employee pride. They appreciate the company’s tangible efforts to create an exceptional work environment, not just empty promises.”

Addressing potential performance concerns, Asiri said that while it was too early for definitive conclusions, initial observations were promising.

He added: “We have seen no indicators of performance decline. In fact, we are noticing increased productivity in some employees.”

He attributed this to improved mental well-being, heightened morale, and employees’ appreciation of the trust placed in them.

Transparency remains a priority for Lucidya, and Asiri said: “We commit to publishing a comprehensive public report on this decision’s impact once we have sufficient data.

“When employees feel genuinely comfortable in their workplace, their dedication and output naturally increase.”


Rising star triumphs in tech competitions

Updated 11 September 2024
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Rising star triumphs in tech competitions

  • Success of Mariam Al-Ahmar, 23, is a rallying cry for Saudi women in tech

RIYADH: In an era where technology is shaping the Kingdom’s future, 23-year-old Mariam Al-Ahmar is emerging as an inspiration for Saudi Arabia’s young people seeking to contribute to their nation’s development.

A graduate of Prince Sattam University with a bachelor’s degree in software engineering, Al-Ahmar recently won first place in the Mediathon hackathon, a competition organized by the Ministry of Communications and Information Technology earlier this year in May.

She also secured third place in Tamkeenthon, a health-focused competition organized by the Authority for the Care of Persons with Disabilities from November 2023 to January this year.

Al-Ahmar’s success story has resonated throughout Saudi Arabia, leading to appearances on prominent channels including Al-Akhbariya's "120 Minutes" and MBC's "Good Morning Arabs."

Reflecting on her experiences in the Mediathon and Tamkeenthon competitions, Al-Ahmar described her journey as “enriching” and challenging.

Trying to identify a real-world problem that needed a solution required deep introspection and creativity, she said.

Al-Ahmar told Arab News: “Presenting and articulating this issue and its remedy to the judging committee was another obstacle. However, through effective teamwork with my dedicated colleagues, we successfully navigated these challenges and triumphed.”

In an age where technology often champions individual genius, Al-Ahmar’s story serves as a reminder of the importance of collective effort and support.

“The passion for technology fueled my pursuit of software engineering,” she said. “Prince Sattam University played a pivotal role in my journey by providing me with a solid educational foundation.”

When asked about the factors that set her work apart, Al-Ahmar said: “I attribute the distinctiveness of our work to a combination of innovative problem-solving approaches, meticulous attention to detail, and a collaborative team dynamic.”

She added: “These factors, coupled with a relentless pursuit of excellence, set our projects apart from those of our competitors.”

She offered advice to students aspiring to follow in her footsteps. “Always remember that challenges are opportunities for growth. Embrace them wholeheartedly and work with dedication and perseverance.”

“Utilize your education as a strong foundation to tackle real-world problems creatively. Lastly, never underestimate the power of hard work, determination, and continuous learning in achieving your goals,” Al-Ahmar said.


Who’s Who: Rabah Al-Shemaisi, SG of Media and Awareness Committee at Saudi Banks

Updated 11 September 2024
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Who’s Who: Rabah Al-Shemaisi, SG of Media and Awareness Committee at Saudi Banks

Rabah Al-Shemaisi has been the secretary-general of the Media and Awareness Committee at Saudi Banks since 2021.

Under her leadership, the committee has made significant contributions to the banking sector.

It was established in 2006 under the guidance of the Saudi Central Bank to enhance banking culture within Saudi society.

Al-Shemaisi is the first Saudi woman to occupy the role. Her primary focus is to promote financial literacy and banking awareness across various societal sectors.

In her capacity as secretary-general, she manages the committee’s operations, organizes awareness campaigns, forges partnerships with governmental and private entities, and engages with the media on important banking topics.

Before her current role, Al-Shemaisi was director of marketing for Visa International in Saudi Arabia in 2020, breaking new ground as the first Saudi woman in the position.

During her tenure, she developed strong relationships with Saudi banks and played a crucial role in executing marketing initiatives that contributed to the brand’s growth in the region.

Al-Shemaisi’s commitment to strategic marketing and corporate communications in the banking industry has been evident throughout her career.

She previously served as marketing manager at Al-Rajhi Bank in 2019 and contributed her expertise at Banque Saudi Fransi in 2017.

Her professional journey began at Emirates NBD in 2011.

Al-Shemaisi holds a bachelor’s degree in languages and translation from King Saud University in Riyadh.


Saudi crown prince congratulates Algerian president on re-election

Saudi Crown Prince Mohammed bin Salman and Algeria’s incumbent President Abdelmadjid Tebboune. (File/SPA/AFP)
Updated 11 September 2024
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Saudi crown prince congratulates Algerian president on re-election

  • Tebboune was re-elected with almost 95 percent of the vote

RIYADH: Saudi Crown Prince Mohammed bin Salman congratulated Algeria’s incumbent President Abdelmadjid Tebboune on his re-election during a phone call on Wednesday.

The crown prince wished Tebbounne success and the president thanked Prince Mohammed for his kind wishes. 

Algeria’s electoral authority ANIE announced on Sunday that Tebboune had been re-elected with almost 95 percent of the vote.

More than 5.3 million people voted for Tebboune, accounting for “94.65 percent of the vote,” ANIE head Mohamed Charfi said.