Updated Nitaqat Saudization program has enabled increase in Saudi citizens working in the private sector

The first and second stages of the "Updated Nitaqat" Saudization programme played a significant role in helping to increase the number of Saudi citizens working in the private sector to more than 2.23 million, according to a report released on Thursday by the Ministry of Human Resources and Social Development.

According to the ministry, the program, which aims to encourage businesses in the private sector to localise jobs and guarantee that people have stable employment on the labour market, was successful in its first year of operation.

The program, according to the ministry, aims to help about 35,000 Saudis enter the labour force in the first quarter of this year, bringing the total number of Saudis employed in the private sector to more than 2.23 million, after launching its second phase in January 2023. Together with the other initiatives and programmes run by the ministry, the programme has helped bring down the jobless rate to record lows of 8%.

The ministry announced the Updated Nitaqat programme's debut in mid-2021, giving all private sector establishments enough time to adjust to adjustments and enhance their human resource plans before the programme's criteria took effect.

Beginning on December 1, 2021, the ministry began implementing the programme's first phase across all establishments in the private sector. This was in keeping with the ministry's objective to increase Saudi participation opportunities while also bolstering the stability of the private sector institutions and the localization decisions.

The revamped Nitaqat programme is regarded as one of the most significant pillars and initiatives of the strategic transformation, which aims to improve the functionality of the labour market and provide Saudis with acceptable employment possibilities as well as a safe and alluring workplace.

According to MHRSD, the programme offers a number of key benefits, including a three-year localization strategy that is both visible and explicit, which will help to increase organisational stability in the private sector.

In addition to launching the first and second phases of the program, the ministry provided a variety of incentives and facilities to private sector establishments to encourage the hiring of Saudis, the most notable of which was salary subsidies in conjunction with the Human Resources Development Fund (HADAF) and the activation of instant accounts for hiring Saudis in all establishments.