— This article seeks to provide an overview and introduce the concept of localization of employees in Saudi Arabia and also examines the new job localization program “Nitaqat” with particular reference to the case of Saudi Arabia, in order to pursuing the strategy of Saudization that been introduced at the late of the 90s. The analysis is based on a number of interviews have been done with HR mangers in different economic activities in the Saudi private sector. The initial findings provide valuable insights into the Nitaqat program, its barriers such as the education system that is not market driven, some cultural practices that concerning women in the workforce and some of the local’s habits such as focusing more on prestige than performance. Further, it shows some of HR managers concern about the replacement of their employees. Interview respondents advised enhancing the skills of the local workforce and enhancing the educational system outcomes in the country and linked it to the needed jobs in the country.
— Localization barriers, Nitaqat, Saudi Arabia, saudization.
The authors are with the School of Property, Construction and Project Management, RMIT University, Melbourne, Australia (e-mail: email@example.com, firstname.lastname@example.org, email@example.com).
Cite: Nawaf Alshanbri, Malik Khalfan, and Tayyab Maqsood, " Localization Barriers and the Case of Nitaqat Program in Saudi Arabia," Journal of Economics, Business and Management vol. 3, no. 9, pp. 898-903, 2015.