Latest news with #Saudization
Saudi Gazette
6 days ago
- Business
- Saudi Gazette
For big tech, the future in Saudi Arabia lies in nurturing local expertise
Saudi Arabia's accelerated transformation under Vision 2030 is rewriting the rules of business in the Kingdom. In this generational shift, IT is not just an enabler but a cornerstone of progress, at the heart of which lies the powerful nexus of Data & AI, Cloud, and public sector modernisation, fuelled by privatisation and unprecedented government investment. For global technology firms, the opportunity is vast. Yet too many still follow sales-driven playbooks, doing little to build long-term value. Over the past two decades, the trajectory of multinational tech in Saudi Arabia has evolved in phases. Initially, the Kingdom was serviced remotely via regional or global hubs. Following government mandates, companies began establishing physical offices to meet rising demand for IT Services. But today, the stakes have changed. As the Kingdom advances towards Vision 2030, the scale and sophistication of its ambitions demand a deeper, more meaningful commitment. It's one that centres on people and talent. Mamdouh Alolayan, Managing Director for Saudi Arabia at DXC Technology, a leading Fortune 500 global technology services provider, believes the firms that thrive in this next phase will be those that embed themselves in the local fabric. 'Saudi Arabia's workforce is its greatest asset,' Alolayan said. 'Saudi nationals understand the culture, the ambitions, and they're here for the long run. For global tech leaders like DXC that see the Kingdom as a key market, embracing Saudization goes beyond mere compliance, it's a competitive advantage.' DXC advocates a deliberate, three-pronged strategy. The first, and arguably most critical, is to see Saudization as an opportunity to harness the deep knowledge and commitment of local professionals. The company credits its success in the country to a workforce that is nearly 50% Saudi, with females making up 40% of that number. It aims to increase overall Saudization to 60% in the next three years, with a continued emphasis on gender inclusion. 'The leadership of the Kingdom has been very clear that unlocking the potential of Saudi women is key to driving the economy,' Alolayan added. 'Diversity and inclusion is built into our hiring and development strategy, and it helps us to attract and retain the industry's brightest talent.' Another hallmark of companies making an impact in the Kingdom is how they approach the next generation of talent. 'The Kingdom's vision spans decades, so tech firms can't ignore the importance of building generational talent pipelines,' Alolayan said. Graduate programmes and internships have always been part of the playbook, but the most effective ones go beyond basic training and menial tasks. 'We recognise the immense potential of young professionals,' he added. 'And we work to unlock it by aligning their skills to real projects, giving them structured development plans, and pairing them with mentors. Within two months, they're already working on live projects.' DXC's graduate program, for example, has a retention rate of nearly 80%, evidence of how a meaningful first step into the workforce can lead to sustained development and growth. The company also partners with universities such as the University of Business and Technology (UBT) and Taibah Valley to create clear pathways for students, from education to employment, something Alolayan believes all multinationals should prioritise if they want to sustain a strong pipeline of Saudi talent. The third area that still tends to be overlooked by some firms is social impact. Too often, the focus stays narrowly on contracts and delivery, without much thought for how a company can engage with and enrich the wider community. But Vision 2030 is about more than economic KPIs — it's also about improving quality of life for everyone. 'Technology is only as good as the lives it improves,' Alolayan pointed out. 'At DXC, this ethos comes to life in partnerships with organizations such as Saut: The Voice of Down Syndrome Society and Ekhaa, a charitable foundation for Saudi orphans. 'Our commitment to making a meaningful social impact keeps us connected to the communities in which we work and live, and it reminds our people why what we do matters,' he said. For Saudi professionals, this is a moment of unparalleled opportunity. DXC itself is currently looking to hire over 150 Saudi professionals as it expands its presence across the Kingdom. Such investments by Big Tech that align with the government's ambitions to lead global efforts across emerging domains like AI, cloud, and cybersecurity are creating meaningful, high-impact careers. But there's also a note of caution. 'Young Saudis should look carefully at the organisations they choose to join,' Alolayan advised. 'Some still see Saudization as a box to tick, rather than a genuine opportunity to invest in the development of individuals. If you want to grow, seek out a company that will mentor you, develop your skills, and treat you as part of their long-term vision. That's how you build a globally competitive career while contributing to the Kingdom's success story.' For those who join companies with a more rounded, people-centred approach, the payoff is clear. 'As Saudi Arabia's transformation gathers pace,' Alolayan said, 'these professionals will not only witness the Kingdom's transformation, but will also be active contributors in shaping its future.'
Time of India
02-08-2025
- Business
- Time of India
Saudi Arabia raises Saudization goals again, targets now as high as 80% in some sectors
Private firms with five-plus employees in pharmacy and engineering roles, and three in dentistry, must meet new Saudization rates/Representative Image TL;DR: From July 27, 2025, Saudization rates rise across pharmacy (35–65%), dentistry (starts at 45%), and technical engineering (30%) sectors in Saudi Arabia. Updated quotas apply to private-sector establishments with specified company sizes and minimum salary thresholds (SAR 7,000–9,000). The reform is backed by incentives and procedural guidance issued by the Ministry of Human Resources and Social Development ( MHRSD ) to meet Vision 2030 goals. As part of its Vision 2030 employment initiative, Saudi Arabia's Ministry of Human Resources and Social Development (MHRSD) has raised Saudization targets in healthcare and technical engineering sectors. The updated quotas took effect on July 27, 2025, covering professions such as pharmacy, dentistry, technical engineering, and accounting impacting 269 roles across entities nationwide. Sectoral breakdown of new Saudization rates 1. Pharmacy 35% for community pharmacies and medical centres 65% for hospital pharmacy operations 55% for other pharmacy-related roles Mandates apply to establishments with five or more pharmacy staff, requiring a minimum monthly salary of SAR 7,000 per Saudi employee as per Saudi Gazette. 2. Dentistry 45% Saudization from July 27, rising to 55% in mid-2026 Applies to facilities with three or more dentists, with an entry threshold salary of SAR 9,000 per month for quota counting. 3. Technical Engineering 30% Saudization required in establishments with five or more technical engineers, effective July 27, 2025 Minimum salary requirement: SAR 5,000 per month. Healthcare professions (Earlier phase) As of April 17, 2025, Saudization rates for four health professions were enforced: Radiology: 65% Medical lab: 70% Therapeutic nutrition: 80% Physiotherapy: 80% These apply initially in major cities, expanding nationwide by October 17. Minimum wages: SAR 7,000 for specialists, SAR 5,000 for technicians. Implementation mechanisms & support MHRSD has released procedural guides and compliance instructions on its official website to clarify employer obligations, quota calculations, and penalties. Independent supervisory agencies oversee sector compliance: Ministry of Health for pharmacy & dentistry Ministry of Municipal Affairs & Housing for engineering roles. Eligible companies can utilize Human Resources Development Fund (HADAF) programs for recruitment, training, and retention of Saudi talent. Why this matters Accelerates Saudi employment : Focuses localization on strategic, skilled roles that historically relied on foreign workers. Supports Vision 2030 goals : Saudization policies are key to reducing unemployment, increasing national workforce participation and diversifying the economy. Incentivises compliance : Penalties for non-adherence are balanced by support programs to ease transition. Saudi Arabia's updated Saudization targets signify a decisive step toward greater national workforce engagement in high-value sectors. With quotas now enforced in pharmacy, dentistry, engineering, and healthcare, employers must restructure recruitment practices quickly and strategically. Backed by Vision 2030 and supported by HRSD through practical guidance and financial incentives, these measures are poised to reshape private-sector employment while maintaining regulatory compliance and market competitiveness. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Taylor Swift Goes Natural, Here's How She Really Looks The Noodle Box Undo FAQ 1. When do these changes take effect? Pharmacy, dentistry, and engineering quotas begin July 27, 2025, with dental quotas rising further in 2026. Healthcare professions launched earlier on April 17, 2025,expanding nationwide by October. 2. Which sectors are impacted? 269 roles across pharmacy, dentistry, medical laboratories, physiotherapy, therapeutic nutrition, accounting, and technical engineering. 3. What penalties exist for non-compliance? Firms can face Fines and non-renewal of licenses, enforced by HRSD and partner ministries. 4. Are there salary thresholds for inclusion? Yes, roles must meet minimum monthly salary levels (SAR 7,000–9,000) to count toward Saudization quotas. 5. How does this tie into national strategy? Saudization is central to Vision 2030, aimed at reducing unemployment (now at ~7.1%, below original 8% target) and expanding Saudi private-sector participation.
Arab News
31-07-2025
- Business
- Arab News
Saudis to get more leadership roles as PepsiCo expands, says regional CEO
DHAHRAN: Food manufacturer PepsiCo will offer more leadership roles to Saudis, its regional CEO pledged at the inauguration of the SR300 million ($79.97 million) expansion of its Dammam facility. Speaking to Arab News, Ahmed El-Sheikh explained how the company supports the Kingdom's Vision 2030 economic diversification plan through three main areas — using local resources, Saudization, and increasing exports. The announcement came during a visit to the site by Minister of Industry and Mineral Resources Bandar Alkhorayef, who praised the facility's contribution to job creation, export growth, and the overall development of the food manufacturing sector in Saudi Arabia. The site serves as a key hub in the region, which supplies local markets and exports products to 20 countries across the Middle East. The PepsiCo MENAP CEO said: 'We're proud to say that 85 percent of our workforce at the Dammam plant are Saudi nationals, one of the highest rates across any of our facilities in the region. With 280 employees currently, this is just the beginning. We plan to grow even further.' He added: "As we move toward greater digitization and automation, we're also opening up more opportunities for Saudis to step into technical and leadership roles.' Recent regulatory changes, which have been made possible through collaboration with the Kingdom's Ministry of Environment and Agriculture, now permit PepsiCo to utilize locally grown potatoes for export. This development has been described by Alkhorayef as a 'significant milestone' for both local farming and policy reform. 'It demonstrates how we've been able to work with PepsiCo over the last few years to ensure the entire supply chain, from farming to production and export, is well managed,' the minister told Arab News. 'As a result of our success working as a team, we were able to amend the policy so that PepsiCo can now use Saudi grown potatoes for export,' he added. Bandar Alkhorayef cutting the ribbon on the Dammam facility. Sustainability and resource efficiency were focal points during the visit, and Alkhorayef noted that the Kingdom now holds 'a record in terms of water efficiency in potato cultivation,' a development he called inspiring, not only locally, but globally. The Dammam plant sources 100 percent of its potatoes from Saudi farms, and uses local materials for secondary packaging, with 70 percent of primary packaging now locally sourced, a percentage PepsiCo aims to push to full localization. PepsiCo operates in the Kingdom across 86 locations and employs nearly 9,000 people through direct and partner operations. The company has opened a new regional headquarters in Riyadh's King Abdullah Financial District, which will oversee operations across the Middle East, North Africa, and Pakistan, aligning with Saudi Arabia's Regional Headquarters Program. Further investment is also planned, and El-Sheikh said: 'In addition to the SR300 million we've just invested in the Dammam plant, we're preparing to open a state-of-the-art R&D facility in Riyadh in just two months' time.' The center will cost SR30 million and serve as a hub for product and packaging innovations in the Gulf Cooperation Council region, according to a statement from PepsiCo released in April. When it comes to employment, Alkhorayef stressed that Saudization is driven by data and standards. 'This plant is a great example. It has around 85 percent Saudization, and female participation is about 22–23 percent, with more than 25 percent women in the plant workforce itself. That's a significant achievement.' He added that the government takes a comprehensive approach to measuring local content, and went on to say: 'But measurement is not the goal, it's a baseline. The real goal is to use it as a foundation to increase both local sourcing and hiring.' The Dammam plant is one of PepsiCo's most advanced in the region, and features energy efficient heating, ventilation, and air conditioning systems, solar panels generating 510 megawatt-hour yearly, and uses recycled water in its processing systems. These investments align with the sustainability goals in the Kingdom's National Industrial Strategy.
Zawya
28-07-2025
- Business
- Zawya
Saudi Arabia begins enforcement of higher localization rates in pharmacy, dentistry, and engineering sectors
RIYADH — The Ministry of Human Resources and Social Development (MHRSD) announced the implementation of updated Saudization targets in key professional sectors, starting Sunday, July 27, 2025. The move comes in collaboration with supervisory bodies including the Ministry of Health and the Ministry of Municipal and Rural Affairs and Housing. The updated Saudization plan targets pharmacy, dentistry, and technical engineering professions as part of ongoing efforts to expand the participation of Saudi nationals in the labor market and create productive employment opportunities across the Kingdom. In partnership with the Ministry of Health, the Saudization rate for pharmacy roles has been raised to 35% in community pharmacies and medical complexes, 65% in hospital pharmacy operations, and 55% in other pharmacy-related activities. This applies to establishments with five or more employees in pharmacy roles, with a minimum wage threshold of SR7,000 to count toward localization quotas. Dentistry jobs are now required to meet a 45% Saudization rate in the first phase, also effective today. The decision applies to facilities employing three or more dental professionals, with the minimum salary for inclusion in the quota set at SR9,000. Meanwhile, in coordination with the Ministry of Municipal and Rural Affairs and Housing, technical engineering professions must now meet a 30% Saudization target in establishments with five or more employees in these roles. A minimum monthly wage of SR5,000 has been set to qualify for localization compliance. The ministry said it has published procedural guides on its official website detailing the required quotas and application mechanisms, urging all establishments to comply in order to avoid penalties. The update continues the Kingdom's broader nationalization strategy within the private sector. While the Ministry of Health will oversee the implementation of Saudization in dental and pharmacy professions, the Ministry of Municipal and Rural Affairs and Housing will monitor compliance in technical engineering fields. Private sector entities will also benefit from support programs offered by the Human Resources and Social Development system, including recruitment incentives, training, job retention, and priority access to Saudization assistance through the Human Resources Development Fund (HRDF). © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Saudi Gazette
27-07-2025
- Business
- Saudi Gazette
Saudi Arabia begins enforcement of higher localization rates in pharmacy, dentistry, and engineering sectors
Saudi Gazette report RIYADH — The Ministry of Human Resources and Social Development (MHRSD) announced the implementation of updated Saudization targets in key professional sectors, starting Sunday, July 27, 2025. The move comes in collaboration with supervisory bodies including the Ministry of Health and the Ministry of Municipal and Rural Affairs and Housing. The updated Saudization plan targets pharmacy, dentistry, and technical engineering professions as part of ongoing efforts to expand the participation of Saudi nationals in the labor market and create productive employment opportunities across the Kingdom. In partnership with the Ministry of Health, the Saudization rate for pharmacy roles has been raised to 35% in community pharmacies and medical complexes, 65% in hospital pharmacy operations, and 55% in other pharmacy-related activities. This applies to establishments with five or more employees in pharmacy roles, with a minimum wage threshold of SR7,000 to count toward localization quotas. Dentistry jobs are now required to meet a 45% Saudization rate in the first phase, also effective today. The decision applies to facilities employing three or more dental professionals, with the minimum salary for inclusion in the quota set at SR9,000. Meanwhile, in coordination with the Ministry of Municipal and Rural Affairs and Housing, technical engineering professions must now meet a 30% Saudization target in establishments with five or more employees in these roles. A minimum monthly wage of SR5,000 has been set to qualify for localization compliance. The ministry said it has published procedural guides on its official website detailing the required quotas and application mechanisms, urging all establishments to comply in order to avoid penalties. The update continues the Kingdom's broader nationalization strategy within the private sector. While the Ministry of Health will oversee the implementation of Saudization in dental and pharmacy professions, the Ministry of Municipal and Rural Affairs and Housing will monitor compliance in technical engineering fields. Private sector entities will also benefit from support programs offered by the Human Resources and Social Development system, including recruitment incentives, training, job retention, and priority access to Saudization assistance through the Human Resources Development Fund (HRDF).
