Saudi’s Ministry of Human Resources and Social Development, in collaboration with the Ministry of Municipal and Rural Affairs and Housing, has announced a new initiative to localize 25 percent of engineering professions in the private sector starting from July 21, 2024. This policy will apply to all private sector establishments employing at least five individuals in engineering roles.
The objective of this decision is to create more favorable and productive employment opportunities for both male and female citizens across different regions of the country. The Ministry of Municipal and Rural Affairs and Housing will oversee and implement this initiative, aiming to enhance participation in the job market. The ministry will ensure that the implementation aligns with the labor market requirements and the specific demands of engineering professions.
Read more: Saudization efforts result in 35 percent localization of dental profession
In a post on X (formerly known as Twitter), Eng. Ahmed Alrajhi, Saudi minister of Human Resources and Social Development, said, “In a joint effort with the Minister of Municipal, Rural Affairs and Housing, we have officially introduced a policy to localize 25 percent of engineering professions within the private sector.”
Alrajhi added that, “We will be announcing employment and training agreements with various companies and institutions, further strengthening our collective endeavor to empower the national workforce in the labor market.”
مع انتقال ملف إدارة مهام التوطين في القطاع البلدي والإسكان إلى @saudimomrah؛ أطلقنا اليوم مع معالي @majedhogail قرار توطين المهن الهندسية في القطاع الخاص بنسبة 25%، وإعلان اتفاقيات توظيف وتدريب مع القطاع الخاص، وهو ما يعزز من جهودنا المشتركة لتمكين كوادرنا الوطنية في سوق العمل. pic.twitter.com/8OFO7BuQvG
— أحمد سليمان الراجحي (@Ahmed_S_Alrajhi) January 21, 2024
Incentives and support programs for private sector establishments
Private sector establishments will be able to benefit from incentives and support programs provided by the human resources and social development system to facilitate the employment of Saudi nationals. These initiatives include assistance with attracting and identifying suitable workers, support for necessary training and qualification processes, and aid in recruitment and career advancement.
Additionally, private sector entities will have priority access to nationalization support programs within the system, as well as support and employment initiatives through the Human Resources Development Fund (HADAF).
To fulfill these objectives, the Ministry of Municipal and Rural Affairs and Housing and the Ministry of Human Resources and Social Development will enter into agreements with various private sector entities. These agreements are in line with government decisions concerning the localization of engineering professions.
Statistics from the Saudi Council of Engineers
According to data from the Saudi Council of Engineers, the total number of engineers, technicians, and specialists affiliated with the council is 448,528. Among them, Saudis represent 34.17 percent, with females accounting for 3.19 percent and males comprising 96.81 percent.
These decisions are expected to create high-quality employment opportunities for qualified Saudi nationals, resulting in over 8,000 jobs in engineering professions and an additional 8,000 jobs in engineering technical roles. The aim is to increase the participation of Saudi nationals in the labor market.
Comprehensive guide on Saudization
Noteworthy that the Ministry of Human Resources and Social Development had previously issued a directive requiring the localization of 20 percent of engineering professionals in private sector establishments with five or more engineers. This directive also established a minimum wage for registered engineers.
The ministry has published a comprehensive guide outlining the details of the Saudization policy, including the proposed localization rates, targeted activities and professions, the calculation methodology for workforce percentages, penalties for non-compliance with localization requirements, and an explanation of government support programs offered by the human resources system and relevant bodies to assist the private sector in achieving Saudization targets.
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