Title

Replacing Foreign Workers with Locals: Saudization and Service Industry in Saudi Arabia

Author

Muhammad Asad Sadi, Ph.D. Associate Professor

Contact Information

Department Management & Marketing
College of Industrial Management
King Fahd University of Petroleum & Minerals

E-mail: amasadi@kfupm.edu.sa

Key Words

Saudization, Localization, Service Industry

Abstract

The Kingdom of Saudi Arabia , like several other states in the Arabian Gulf region, is seeking to reduce its dependence on oil and promote a new economic order which will be characterized by greater diversity. One important element of the policy, at a time of rising unemployment, is that of maximizing job opportunities for locals and reducing the size of the expatriate workforce by installing Saudi nationals in public and private sector posts previously held by foreign workers. This job localization program has been termed the Saudization Drive and the government is vigorously pursuing ambitious targets with a view to realizing the perceived benefits of the process for individuals, organizations and society. The background to the Saudization initiative and its features are explained in this article which focuses on implications for the Kingdom's service industry, identified by the government as a growth area of the future. Information used in this study was obtained from published research, service sector experts and the authors' own observations made during his employment for a five years term as a faculty member in a premium university and as a management consultant in Saudi Arabia .

Full-text

Contact: Dr.Obeidat at mobeidat@spsu.edu or lsun@spsu.edu