Saudi private sector shows steady increase in Saudization

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There has been a steady increase in Saudization in the private sector over the last three years, according to the latest report of the National Labor Observatory (, the Saudi Press Agency reported.

The observatory, which was launched last year, is an affiliate of the Human Resources Development Fund (HADAF), under the Ministry of Human Resources and Social Development.

“The percentage of Saudis rose to 20.37 percent of the total workforce in the private sector during the first quarter of 2020 compared to 20.21 percent during the same period last year. The percentage of Saudization in the private sector was 18.61 in 2018,” the report pointed out. The observatory noted that there had been a fluctuation in the percentage of Saudization over the previous years with 16.46 percent in 2017, 16.79 percent in 2016, 17.14 percent in 2015 and 15.63 percent in 2014.

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The report pointed out that the number of Saudi employees from the private sector registered with the General Organization for Social Insurance (GOSI) in the first quarter of this year stood at 1,712,571 with men making up 66.78 percent and women accounting for 33.22 percent. The Eastern Province stood first in the Saudization with 24.01 percent and it was followed by Riyadh with 20.72 percent, Makkah (20.46 percent), Madinah (18.14percent) and Asir (15.98 percent).

Finance and insurance were the highest economic activities where the highest level of Saudization (83.01 percent) was achieved in the private sector. This was followed by activities of international organizations (70.71 percent), mining and quarries (61.95 percent), education (52.86 percent) and information and communications (48.81 percent).

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