Saudization Policy Impact on Employment

The research proposal aims to explore the impact of Saudization policy on employment in Saudi Arabia. The policy seeks to replace foreign workers with local nationals in private sectors, influencing employment levels and opportunities. The study will examine how Saudization affects employment, focusing on changes in HR functions, benefits for Saudi nationals, and organizational adjustments. It will utilize secondary research and primary data collection methods, including questionnaires and surveys, to analyze the views of top executives and local citizens.

Running Head: Saudization and employment in the kingdom of Saudi Arabia
Research Proposal
Saudization and employment in the kingdom of Saudi Arabia

Saudization and employment in the kingdom of Saudi Arabia 1
Introduction
The paper will help in understanding the Saudization and employment in the kingdom of Saudi
Arabia and its impact on the employees and the employment level of the Saudi Arabia.
Saudization is considered as a national policy of the kingdom of Saudi Arabia, according to
which the foreign workers are replaced with the Saudi nationals in its private sector. This policy
influences the employment level in the country in greater extent. The policy also said that if an
organization is failed to comply with the Saudization policy or regulations, it will not be awarded
the government contracts (Edgar, 2016). The main motive of the policy is to provide more and
more employment facilities to the citizens of the Saudi nation. The research will try to find how
Saudization influences the employment in the Kingdom of Saudi Arabia. The thesis is an attempt
to look at Saudization at the Saudi Arabia to measures different its influences on the employment
level.
Literature Review
Sadi (2015) defines the Saudization as a process which reverses the different trends of the
globalization by discriminating in favor of local Saudi citizens. The policy of the Saudization
represents the positive bias towards the favouring organizations and employment of local
citizens. Favouring organizations are those that employ local workers to those that fill jobs with
host country workers. It is considered as a development strategy whose main motive is to replace
non-Saudi employees with Saudi employees. Kattan (2015)states that the Saudization policy in
the public sector earns lots of success due to the low level of education, experiences and the
qualifications required for recruits. During 2014, 93.4 % workers in the public sector were local
citizens of the Saudi. Kiwan (2013) states that the private sector of the Gulf Cooperation Council

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countries follows a vast social welfare system. The success and failure of the Saudization policy
mainly depend on the private sector. It influences the profitability of the private organizations in
large context because they will not able to hire talented employees who have great knowledge of
the international culture and languages. TOM (2013) conclude that the provision of the
employment plays an important role in the success of the Saudization. The private sector of the
country plays a major part in the diversification of the Saudi Arabia economy. Most of the
private sectors show disagreement towards the Saudization policy of the government (Al-Asfour,
2014). The main reason behind their resistance may be that the highly interventionist nature of
the Saudi Arabia has produced in a large number of local nationals having fewer work ethics,
productivity and skills to work in an efficient manner.
Research Methodology
Secondary Research
The research report has followed secondary research as well as the primary research. In this
research report, the secondary research is utilized to measure the views of the different authors
regarding the relationship between the patient and the pharmacist. It is conducted because it is
free to use and not consume so much time. The below-mentioned tools are utilized to conduct the
secondary research:
 Scholarly Journals: These articles are the original research conducted by the different
researchers. The main motive of the researcher behind the utilization of scholarly journals
is that they provide sufficient knowledge about the different case studies of the research
topic (Ohgaki, 2013).

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 Articles in Literature Review: These helps the researcher in assembled articles of
different researchers. It is studied to gain knowledge about the past research regarding the
topic of the research.
 Reference books: Various type of books are also studied by the researcher to conduct
research. It provides support to the researcher by providing relevant information about
the research topic.
Primary Research
The research report of the project is mainly utilizing the primary or secondary research method.
Primary study is conducted to measure the taste and preferences of consumers, and their
feedback regarding the restaurant and its services or response. Various methods are applying to
measure the role of food and its quality in the life of human beings. All these will be analyzed by
primary research. For getting the answers of different research questions, I shall use different
methods of primary research which are following:
 Questionnaire and Surveys: It is very efficient and trustworthy method of collecting the
response of customers. This enables us in collecting the required data so that further steps
can be taken to implementation the desired project (Vlachopoulos, 2015).
 Observations: It can be of two types; observation through communication and interaction
or observation through no interaction or communication. In the research project, direct
observation method is applied to measure the customer's response on the spot.
Research Design

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The research is conducted by using primary research, then we take into consideration the top
executives of the private sectors, and also choose some local citizens of the country to carry out
further research.
Research Questions
1. What functions of the organization are influenced by the Saudization policy?
2. What significant changes the organization need to do due to the pressure of the
Saudization policy?
3. To what extent the HR functions of the organization been changed?
4. What benefits the Saudi nationals have due to the introduction of Saudization Policy?
Conclusion
After studying all this, it can be concluded that research should be conducted in an efficient
manner. If all principles of the research project follow accurately, it must able to gain success in
the market. It can be said that the Saudization policy influence the employment level in the Saudi
Arabia in a significant manner (Torofdar, 2012). It will produce some positive outcomes as well
as negative outcomes for the success of private organizations and local citizens.

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References
Edgar, D., Azhar, A., & Duncan, P. (2016). The Impact of the Saudization Policy on Recruitment
and Retention: A Case Study of the Banking Sector in Saudi Arabia. Journal of Business, 1(5),
01-14.
Sadi, M. A. (2015). Labor market and the job nationalization policy: a trajectory of hospitality
and tourism strategy in Saudi Arabia. European Online Journal of Natural and Social
Sciences, 4(2), pp-414.
Sadi, M. A. (2013). The implementation process of nationalization of workforce in Saudi
Arabian private sector: A review of “Nitaqat scheme”. American Journal of Business and
Management, 2(1), 37-45.
Kattan, F. (2015). A Review and Critique of the Saudization Metanarrative: Bringing" The
Citizen" Into Focus.
Kiwan, D. J. (2013). Beyond Saudization: Developing a more Inclusive Policy Amer Sarie Fall
2013-2014 SOAN 290 Final Paper.
TOM, J., & ROY, S. (2013). Implications of Saudization and Nitaqat drive for Gulf-reliant
Kerala. Arth Prabhand: A Journal of Economics and Management, 2(9).
Al-Asfour, A., & Khan, S. A. (2014). Workforce localization in the Kingdom of Saudi Arabia:
Issues and challenges. Human Resource Development International, 17(2), 243-253.
Torofdar, Y. A. J., & Yunggar, M. M. (2012, January). Nationalization of Manpower Resources
in Saudi Arabia: A Closer View at'Saudization'. In International Conference on Human

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Resource Management and Professional Development for the Digital Age (HRM&PD).
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Ohgaki, H., & Kleihues, P. (2013). The definition of primary and secondary
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Vlachopoulos, C., Xaplanteris, P., Aboyans, V., Brodmann, M., Cífková, R., Cosentino, F., ... &
Lekakis, J. (2015). The role of vascular biomarkers for primary and secondary prevention. A
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