Top 6 Benefits of the Saudization Policy for Saudis in 2024

Learn how Saudization is reshaping employment for Saudi citizens as Saudization policies evolve in 2024.

Reviewed by:
Faye Ameen
December 29, 2023
0 min read time
Ayesha Noor
Content Marketer | CopyWriter

Saudization is an initiative by the government of Saudi Arabia as part of its Vision 2030. Saudization has been a game-changer for the Saudi nationals in the kingdom. Saudi Arabia has a strong economy that mostly thrives on the abundance of natural resources like oil and gas available in the country. 

However, due to the economic stability in the country, the country has had an influx of expatriates and international businesses. The private sector in Saudi Arabia has grown rampantly over the past decade. Saudization is an initiative to ensure that Saudi nationals benefit from the rapidly growing private sector of the country.  

Also read: What is the history of Saudization?

What are the benefits of Saudization? 

Saudization has been a phenomenal initiative for facilitating career opportunities, training and development, and professional growth for Saudi nationals. All in all, it helps Saudis emerge as globally competitive talent and contribute to the socio-economic development of their country. 

Some of the most important benefits of Saudization include: 

1. Reduction in Unemployment

Saudization encourages companies in the private sector to employ Saudi citizens' which helps reduce unemployment rates among the local population. This, in turn, fosters economic stability and social well-being. The local population has access to opportunities that help them learn new skills and grow as solid professionals who can compete with international talents for various positions.

Moreover, the youth has a better chance of engaging in productive activities and meaningful work to become resourceful and responsible citizens. Saudi nationals also feel more included in the private sector, contrary to the exclusion they experienced in the past. Saudi nationals are employed in various private industries previously dominated by the expatriate workforce. In a recent discussion, the Saudi government emphasized that in 2022, the unemployment rate dropped from 9.7% to 8.3% due to the Saudization initiatives.

2. Skill Development

Saudization encourages the development of skills and expertise among the local workforce. As more Saudis are employed in various sectors, they gain valuable skills and experience, which contribute to the economy's overall growth.

According to a recent report by McKinsey & Company, the Kingdom of Saudi Arabia has made significant progress in human capital development, with investments in education and training increasing by over 25% in the last five years. 

Encouraging the employment of Saudi nationals leads to a more adaptable, inclusive, and responsive workforce. Local employees are more familiar with the local culture and better understand the needs and nuances of the domestic market. Saudization has enabled the private sector to not only employ top foreign talent but also leverage the Saudi workforce's insights, skills, and experience. 

3. Economic Diversification 

Saudization aims to empower Saudis to take on various roles in the private sector to reduce their reliance on foreign labor. Saudis with multiple skills can also contribute to a more diverse economy, empowering businesses that weren’t previously common in the country. This fosters an economy that is not solely dependent on non-renewable resources such as oil & gas.  Saudi Arabia has made significant progress in diversifying the sources of its budget revenue. For instance, non-oil revenue rose from 10% in 2012 to up to 32% in 2022. 

Moreover, Saudization aims to decrease the country's reliance on expatriate labor. This reduces the outflow of money from the country through remittances and helps retain more economic benefits within the local economy.

4. Stimulating Economic Growth

A large Saudi population of people employed in the country enables them to spend money on goods, products, and services, stimulating economic growth. There is a significant increase in Saudi Arabia's gross domestic product that grew 3.8% year-on-year in Q1 of 2023, and a 5.5% rise in Q4 of 2022.‚Äć

5. Social Stability

Lower unemployment rates and increased economic opportunities for Saudi nationals can lead to greater social stability. Gainful employment can enhance the citizens' overall quality of life and well-being, reducing social tensions related to unemployment and financial insecurity. 

Moreover, the social stability in the region further strengthens Saudi Arabia’s political positioning in the world. A great global reputation helps the country on various social, economic, and political fronts. According to Numbeo, Saudi Arabia is the world’s 12th safest city. 

6. Investor Confidence

Saudization enhances investor confidence by showcasing the country's commitment to developing its domestic workforce. A skilled and stable workforce can make the country more attractive to local and foreign investors. Attracting foreign investment and international businesses helps the local population enjoy luxurious brands and international standard services within their country. 

With a skilled local workforce, investors are more confident in the long-term prospects of their investments, leading to increased foreign and domestic investments that further fuel the country's economic growth


Saudization is undeniably on the horizon for an economic transformation. It strategically promotes employment opportunities for Saudi nationals in the private sector, addresses unemployment, enhances skills, and reduces reliance on foreign labor, fostering economic stability and social prosperity. The initiative’s impact stretches beyond national borders, instilling confidence in local and foreign investors. As the local workforce becomes more skilled and diverse, a positive reputation is propagated internationally, increasing investments and fueling economic growth.

In essence, Saudization strengthens the nation’s economy and instills the spirit of progress and resilience amongst Saudi nationals. It enables economic strengthening, showcasing the potential of strategic initiatives in shaping a prosperous future. As the program evolves, its successes will echo far beyond the borders of Saudi Arabia, inspiring other nations on their paths toward economic sustainability. With commitment and consistency of Saudization laws, Saudi Arabia will have a brighter, more self-reliant tomorrow.

Hire Top Talent with AI
From a pool of 350,000+ top candidate