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Saudi Arabia’s private sector labor model needs to be reinvented in order to encourage the participation of Saudi nationals, said Saud Bin Khalid Al Faisal, deputy governor for investment affairs at Saudi Arabia's General Investment Authority (SAGIA).
He stressed that the current structure, which heavily relies on expat workers, is no longer feasible. This is also the case in other parts of the Middle East, he was quoted as saying by Arabian Business.
Despite its development of a Saudization policy in recent years in order to boost local hiring in private firms, the kingdom's nationals continues to flock to the public sector. Under the rule, 75 percent of private sector employees are required to be nationals, however, the government has faced challenges in enforcing it.
The measure is one in a long line of policies introduced by GCC countries to increase Saudi national participation in the private sector labor market.
Al Faisal highlighted the fact that unemployment remains high in the Gulf, while one in every three nationals between the ages of 15 and 29 are currently not working.
Part of the solution going forward for Saudi Arabia, he says, is scaling up educational standards to improve access and develop skills. The kingdom’s education strategy is an integral part of its the innovation agenda, on which the government spends billions of dollars every year. Around $57 billion is said to have already been invested into various initiatives as well as 80 new vocational colleges.
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