February 22, 2022

The Hunt For Tech Talent In The Midst Of Saudization

Helping Businesses With Saudization


When it comes to business expansion to KSA, Saudization is a term that comes up quite often. Though the policy is designed mainly to generate employment for Saudi nationals, new entrepreneurs looking to expand in KSA seem confused and wary that the policy will limit their productivity and growth.

However, this is not true. According to the report from GOSI, the General Organization for Social Insurance, 7,047 new private businesses entered the Saudi market just during the third quarter of 2021!

The Kingdom of Saudi Arabia is currently one of the most desirable business destinations, owing to the country’s high growth potential and ease of doing business. Saudi Arabia now permits non-Saudis to hold 100% of their enterprises through a simple registration process. In Saudi Arabia, renting an office or commercial property has become hassle-free.

According to Arabian Business, today Saudi’s technology market is worth more than $40bn with over 318,000 jobs in the sector and the rate of participation of women in the ICT workforce at 28%. 

Once a company better understands Saudization, they realize it has no negative consequences for their business. Instead, it represents a unique opportunity.


So, What Is Saudization?

As part of Vision 2030, Saudi Arabia is encouraging businesses to hire more Saudi nationals in the private sector. 

Under the Nitaqat system of Saudization, the government mandates that private firms with more than 9 employees need to hire Saudi Nationals on a quota basis. 

The private firms are classified into six categories, Platinum, High Green, Mid-Green, Low-Green, Yellow, and Red, and based on their classification, the firms are required to hire Saudi nationals. Private firms with less than nine employees are exempt from the rule. However, they need to hire at least one Saudi national. 

Observing the high unemployment rates, the Kingdom of Saudi Arabia has come up with this plan to generate employment. And the move has been successful so far. 

According to Arab News, private firms have already hired 121,000 new Saudi employees in the first quarter of 2021. 

A report from National Labour Observatory has also confirmed that “Saudization in the private sector rose to 22.75 percent in the first quarter, compared to 20.37 percent during the same period last year.

While these numbers are positive, the real question is how is it impacting businesses? Read on to find out.


What Is The Impact Of Saudization On Businesses?

A case study, submitted by Areej Azhar, Professor David Edgar, and Dr. Peter Duncan on Journal of Business, sheds light on some of the possible impacts of Saudization for private firms. One of the first things pointed out in the study is the possibility of imbalanced hiring, especially among private firms that do not have local hiring specialists. 

The situation is especially true for the tech sector, where businesses rely more on expat employees. 

Finally, due to a sudden increase in Saudi employees, human resource management may also become quite complicated for organizations since there are different HR requirements and labor laws for Saudi nationals vs. expats. To avoid potential fines and penalties, HR managers must maintain full compliance with Saudization and local labor regulations.

However, there is a simple solution to these issues. 


How To Simplify Saudization and Hiring Processes For Business Expansion in KSA?

One of the most effective solutions is to outsource this entire process, leaving your HR team to focus on their core competencies. 

With a dedicated team and offices in Saudi Arabia, TASC is a prominent headhunting, staffing, GRO (government relations outsourcing), and HR advisory firm. AIQU, their sibling firm, offers comprehensive technology staffing solutions for Enterprise IT, Digital, and other industries. TASC and AIQU can help with Saudization and can sponsor expat employees on their GOSI, Visa, or Iqama.

Here are some of the advantages of outsourcing staffing, HR, and GRO solutions requirements in KSA.

  • Smooth Hiring: As a local HR solutions specialist, TASC and AIQU are well-versed in local regulations and can assist businesses with a simplified and smooth hiring process. Our specialists can ensure that the business has a sufficient number of Saudi nationals in order to meet Saudization requirements correctly along with recruiting any expat talent with niche skills.
  • Productive Employees: Professional service providers are hiring experts, so they can find skilled employees faster than a company’s in-house HR team. KSA staffing specialists can locate skilled Saudi nationals. TASC specializes in recruiting B2B sales, Marketing, Procurement and supply chain, Finance and accounts, Engineering and technical specialists for any industry. AIQU specializes in recruiting talent in digital, IT infrastructure and cyber security, business intelligence big data and analytics, software engineering, ERP and CRM, compliance, and financial crime. As a result, we help increase overall productivity while also meeting Saudization requirements.
  • Money-Saving: Partnering with experienced staffing and HR solution specialists reduces operational costs, saves time, and improves HR process efficiency.
  • Stress-Free Business: Companies can ensure that they are always in compliance with labor regulations and Saudization requirements when our GRO team is on the job. As a result, you can concentrate on business growth without concern.
  • Staff Management: Professional KSA HR service providers can also manage and support retaining employees through timely onboarding, faster employee query management, and on-time payroll. 


The Top Tech Jobs In Demand in Saudi Arabia 

Digital transformation efforts in private companies and government entities are expected to accelerate and IT spending in the kingdom is forecast to rise. IT is a key pillar of the country’s digital transformation efforts outlined in its Vision 2030 strategy to diversify its economy and enhance public services.

This is good news for technology professionals!

The 2022 LinkedIn Jobs on the Rise list revealed the fastest-growing job titles over the past 5 years in Saudi Arabia, UAE, and Egypt.

In Saudi Arabia, the top tech jobs in demand in 2022 are:

  • Cyber Security Specialists 
  • User Experience Designers 
  • Social Media Specialists
  • Digital Marketing Specialists
  • Data Analysts
  • Software Developers
  • Information Technology Managers
  • eCommerce Managers


Saudization Needs Local Professional Solutions

With communities and industries across Saudi Arabia depending on ICT networks now, more than ever, supporting local talent in tech is a priority. This will ensure business continuity, economic growth. 

Saudization is not difficult if businesses work with experienced Saudi Arabia Staffing and HR solutions providers. Professional specialists not only assist in meeting Saudization targets but also in improving a company’s overall efficiency.

Therefore, developing the right partnerships is the key to success for businesses in KSA. 

If you would like to meet the team, you can drop by for coffee and dates at our office in Riyadh or give our team a call at +966 118386939. Alternatively, you can share your details here