The Implementation Process of Nationalization of Workforce in Saudi Arabian Private Sector: A Review of “Nitaqat Scheme”

Abstract

The purpose of this paper is to discuss the implementation process of nationalization policy of workforce in Saudi Arabian private sector. Saudi Arabian government has acted recently to boost nationalization of labour market to ensure that a certain quotas are given to private businesses in accordance with their actual performance in their line of business as well as the size of workforce. The scheme that drives this motive is known as “Nitaqat” (in Arabic language means “ranges”). The methodology approach is used to validate the results through panels of discussion about nationalization of workforce in Saudi labour market in service industry of private sector. The statements of Panels’ responses were grouped together to make an overall probability of the events. The objective of the panels of discussion was to find which group among the four: strategy, marketing, human resource and training and education, has the highest percentage of responses in favour of workforce nationalization. The results revealed that strategy group had the major impact among the four groups on the topic. The managers might take a look at the strategic aspect of workforce nationalization carefully when implementing “Nitaqat” scheme. The implications in the long run are educational system and job market will rely on a highly skilled local labour pool. But this will demand drastic shifts in cultural perceptions of work and entitlement.