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Is Saudization failing due to local lack of interest in working?
| Published: | 4 Apr at 6 PM |
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Saudi Arabia’s Saudization strategy seems to be failing, as huge numbers of expats have left but haven’t been replaced by local talent.
Since Saudization became the Kingdom’s buzzword, led by its controversial Crown Prince, some 1.5 million expatriate jobs have been made vacant and offered to Saudi locals. Expat reasons for leaving are many, and include early termination of contracts, the economic slowdown and the feeling that job security is no longer guaranteed. The push for companies to hire Saudi nationals as replacements has been a total failure, with just 50,000 locals now employed outside the military and security sectors.
With the excuse for Saudization being to reduce the Kingdom’s dependence on its oil and gas revenues, a recent report that the Ghawar oilfield is now pumping a maximum of just under four billion barrels per day, far less than was projected, may not be good news. Added to the fact that experts are now considering Saudi’s oilfields in general may run out sooner than has been previously predicted, the push to replace expat professionals with locals could well be the beginning of hard times for the Kingdom as well as for its major producer Aramco.
Meanwhile in Dubai, real estate prices in popular expat locations are seeing marginal falls over the year’s first quarter. In addition, incomers are searching for properties in more affordable districts such as Dubai Sports City, JVC and Dubai Silicon Oasis. The only areas where prices are either stable or still rising are Business Bay and Jumeirah Beach Residence, although demand is still strong in Palm Jumeirah and Downtown Dubai. As regards demand for apartments in the city, Dubai Marina is the most popular and its Marina Diamonds the most-searched development.
Since Saudization became the Kingdom’s buzzword, led by its controversial Crown Prince, some 1.5 million expatriate jobs have been made vacant and offered to Saudi locals. Expat reasons for leaving are many, and include early termination of contracts, the economic slowdown and the feeling that job security is no longer guaranteed. The push for companies to hire Saudi nationals as replacements has been a total failure, with just 50,000 locals now employed outside the military and security sectors.
With the excuse for Saudization being to reduce the Kingdom’s dependence on its oil and gas revenues, a recent report that the Ghawar oilfield is now pumping a maximum of just under four billion barrels per day, far less than was projected, may not be good news. Added to the fact that experts are now considering Saudi’s oilfields in general may run out sooner than has been previously predicted, the push to replace expat professionals with locals could well be the beginning of hard times for the Kingdom as well as for its major producer Aramco.
Meanwhile in Dubai, real estate prices in popular expat locations are seeing marginal falls over the year’s first quarter. In addition, incomers are searching for properties in more affordable districts such as Dubai Sports City, JVC and Dubai Silicon Oasis. The only areas where prices are either stable or still rising are Business Bay and Jumeirah Beach Residence, although demand is still strong in Palm Jumeirah and Downtown Dubai. As regards demand for apartments in the city, Dubai Marina is the most popular and its Marina Diamonds the most-searched development.
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