Saudization

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Saudization (Arabic: السعودة), officially the Saudi nationalization scheme and also known as Nitaqat (Arabic: النطاقات), is a policy that is implemented in the Kingdom of Saudi Arabia by the Ministry of Labor and Social Development, which requires companies and enterprises to fill their workforce with Saudi nationals up to certain levels. Prior to its implementation, the private sector was largely dominated by expatriate workers from India, Pakistan, the Philippines, and Arab countries such as Lebanon and Egypt. The Saudi Government created the policy to reduce unemployment among native Saudis, under the slogan 'Let's Put the Saudi in Saudization'. Under the policy, companies that failed to comply with Saudization regulations will not be awarded government contracts. While the "Saudi political elite" agrees on the importance of Saudization, Saudi businesses have complained about its implementation and found loopholes to dodge Saudization demands. In 2017, updates to the Saudization policy changed the percentage of Saudi nationals required in each company, depending on industry and company size.