The Ministries of Human Resources and Social Development, and Health in Saudi Arabia have started implementing a 35 percent nationalization plan for dental professions, which is expected to benefit the Saudi workforce. The new resolution will apply localization ratios to private sector establishments that employ three or more workers in dental professions. This decision is in line with the ministries’ efforts to create better job opportunities for male and female citizens across different regions of the country.
Support and incentives for private sector establishments
The Ministry of Health will oversee the implementation of this decision to enhance labor market participation, focusing on the specialization of the dental profession. Private sector establishments will receive support and incentives from the HRSD system to facilitate Saudi employment. This support includes assistance with recruitment, finding suitable workers, training and qualification processes, job continuity, as well as priority access to localization and employment support programs through HRSD.
To ensure compliance with the regulations, the ministry has published procedural instructions on its website outlining the localization requirements and professions. It highlights the importance of enterprises adhering to these regulations to avoid penalties.
Increasing participation rate in the private sector
According to statistics published by the HRSD system in December 2023, Saudi Arabia experienced a significant increase in the participation rate of nationals in the private sector. The participation rate of Saudis in the private sector rose from 1.7 million in 2019 to 2.3 million in 2023. This increase included over 360,000 individuals who entered the labor market for the first time. As a result, the total unemployment rate decreased to 8.3 percent in the second quarter of 2023, as reported in the Labor Market Bulletin statistics released in December. These positive changes reflect the reforms, strategies, and substantial support that have transformed the Saudi labor market.
Making the labor market attractive for talent
HRSD has been working diligently to make the labor market in the Kingdom more attractive for talent and competitive in global divisions. Through its initiatives aligned with the Kingdom’s Vision 2030, the labor market strategy has yielded tangible results at the national level. In 2022, Saudi Arabia achieved the highest worker productivity growth rate of 4.9 percent among the G20 countries. These efforts have also contributed to reducing the unemployment rate among Saudi women to 15.7 percent, as reported by the SPA.
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