The Economy of Saudi Arabia
Saudization and Foreign Workers
Foreigners make up around 40 per cent of the population and most private sector jobs, and quotas push firms to hire Saudis.
Labour markets are split.
Foreign workforce
Millions of workers from South Asia, Egypt and the Philippines work in construction, services and care.
Saudization
The Nitaqat scheme sets quotas requiring firms to hire Saudi nationals.
Kafala
The sponsorship system tied workers to employers, and reforms in 2021 eased some restrictions.
Unemployment
Saudi unemployment has been reduced but remains a policy focus.
A quota
A shop must employ a set share of Saudi staff or face penalties.
Assuming quotas create productive jobs automatically
Skills and wages matter.
Key takeaways
- Foreigners are a large share of workers.
- Nitaqat sets hiring quotas.
- Kafala reforms began in 2021.
- Job creation for nationals is a priority.
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