Saudi Arabia Launches New Job Initiative

Saudi Arabia has announced plans to generate over 340,000 new jobs for its citizens in the private sector over the next three years. This initiative is part of the second phase of the Nitaqat AlMutawar program, designed to boost employment opportunities for Saudi nationals while reducing reliance on expatriate labor. The program aligns with the Kingdom’s broader vision of sustainable economic growth and private-sector development.

The initiative emphasizes not just the number of jobs but also the quality of employment. By supporting Saudization in private companies, the government aims to balance economic expansion with local workforce participation. This effort also contributes to long-term stability in the labor market and ensures that Saudi citizens are well-represented across diverse industries.

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Success of Phase I: Exceeding Employment Targets

The first phase of Nitaqat AlMutawar, launched in 2022, successfully employed more than 550,000 Saudi citizens, surpassing the initial target of 340,000 jobs. This achievement demonstrated that Saudi nationals can excel in a wide range of private-sector professions, from technical roles to managerial positions.

Key outcomes of Phase I included:

• Increased private-sector participation of Saudi citizens
• Strengthened skills and productivity of the local workforce
• Positive impact on the Kingdom’s economic diversification goals

The success of the first phase set the foundation for Phase II, showing that with proper planning and execution, Saudization programs can meet both workforce and market needs effectively.

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Objectives of Phase II of Nitaqat AlMutawar

Phase II focuses on creating an additional 340,000 jobs while improving the quality of employment. The program aims to ensure that Saudi citizens receive competitive job opportunities that provide long-term growth and stability.

The main objectives include:

• Expanding Saudi representation across private-sector industries
• Enhancing job stability, productivity, and workplace skills
• Supporting sustainable economic growth by integrating local talent in key sectors

This phase also emphasizes strategic planning to maintain a balance between workforce development and private-sector competitiveness. The government intends to create jobs that are meaningful, sustainable, and aligned with labor market demands.

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Implementation Strategy and Industry Planning

To implement Phase II effectively, the Ministry of Human Resources and Social Development conducted extensive studies across different industries and company sizes. This research ensures that Saudization targets are realistic and adapted to market conditions.

Key strategies include:

• Conducting sector-wise analysis to identify potential employment opportunities
• Setting Saudization rates that reflect industry capacities
• Encouraging private-sector confidence to hire Saudi citizens

By using data-driven planning, the government aims to achieve both accelerated Saudization and a competitive business environment. Companies will have clear guidance on integrating local talent without compromising operational efficiency.

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Expected Impact on the Saudi Labor Market

The new phase is expected to improve the overall stability of the Saudi labor market. Increased local employment will contribute to higher productivity, stronger job security, and sustainable economic development.

Benefits for the labor market include:

• Enhanced job stability and security for Saudi nationals
• Increased productivity through workforce upskilling
• Long-term sustainability of employment opportunities in private companies

The program also ensures a healthy balance between labor supply and demand while empowering local talent. By reducing dependency on foreign workers, the Kingdom can strengthen its economic independence and workforce resilience.

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Government Statements and Future Outlook

Minister Ahmed Al Rajhi highlighted that Phase II is designed to create opportunities for Saudi citizens while maintaining competitiveness in the private sector. Deputy Minister Abdullah Abuthnain emphasized the importance of realistic Saudization rates based on extensive industry studies.

The government’s long-term vision includes:

• Encouraging private-sector participation in workforce development
• Ensuring sustainable employment opportunities for Saudi nationals
• Promoting economic growth by integrating local talent across industries

The continued success of the Nitaqat AlMutawar program is expected to reinforce confidence in Saudi Arabia’s labor policies and contribute to a more resilient economy.

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Potential Challenges and Considerations

While the initiative has significant benefits, challenges remain in implementation. Ensuring that Saudization rates are balanced and practical across various sectors is crucial.

Potential challenges include:

• Aligning employment targets with industry capacity
• Maintaining quality employment without overburdening businesses
• Providing adequate training and upskilling for new entrants

Addressing these challenges will be essential to maximize the positive impact of the program and ensure its long-term sustainability

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Table: Comparison of Nitaqat AlMutawar Phases

Parameter	Phase I (2022)	Phase II (2026)
Target Jobs	340,000	340,000
Actual Jobs Created	550,000	Ongoing
Focus	Initial Saudization	Job creation & quality improvement
Key Sectors	Private sector industries	Diverse industries with realistic Saudization rates

FAQs

What is the Nitaqat AlMutawar Phase II program?
It is Saudi Arabia’s initiative to create 340,000 jobs for citizens in the private sector over the next three years.

Who benefits from this program?
Saudi nationals seeking employment in private companies, with opportunities for stable and quality jobs.

What was the result of Phase I?
Phase I employed over 550,000 Saudis, exceeding the original target of 340,000 jobs.

How does the government plan to implement Phase II?
Through extensive industry studies, sector-specific Saudization rates, and private-sector engagement.

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