Saudisation As A Beneficial Resolution To Unemployment Business Essay

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The Saudi youth become the main priority of the government officials. The introduction of the Saudisation is there as a form of government policy which comprises of the Saudi nationals working for the nation within the regional and foreign companies. The current status of the policy manages to raise the skill and development rate with fall in unemployment rate. The problem of the unemployment tends to be there as some potential employers still think that the youth lacks the skills and technology and they cannot replace the expatriate skilled workforce. So, The study will focus whether Saudisation helps to resolve the problem of unemployment, there main perception is up to what degree the competitiveness and advanced skilled being endorsed among the youth. The kingdom's vital objective levied on the fact i.e. refurbishment of the labour market to overcome the competitiveness and economic diversification. "kafala" being introduced to the people in terms of benefits therefore, need to regulate the workforce (Reuters, 2010). In 25million population there are about 30 per cent of population comprises of the Pakistan, India, Philippines and Egypt termed as Expats whereas, youth unemployment keeps on diminishing since, 1996. Although, the graphs shows some improvements still the percentage of unemployment tends to be high (ILO, 2010). The research will follow a proper plan and dissected into chapters starting with the introduction, Objective of the research, brief literature review, Research methodology. The last phase of the proposal will follow by data analysis and access/ethical consideration. The research will follow combination of both the qualitative and quantitative approaches with a random sampling technique targeting population of 450 in total. The main aim is to target the youth to know the relevancy of the research. The primary research will focus the unemployment issues and how far Saudisation proves to be beneficial for the problem taking into consideration the private sector organization.

2. Research Objectives of this Study:

1.) What are the characteristics of Saudisation for resolving unemployment problems?

2.) What initiatives are being taken into consideration under Saudisation to foster the growth of employment opportunities in kingdom?

3.) What would be the effect of Saudisation on the productivity and competitiveness of the Economy?

The research will focus developing a in depth research on framework of Saudisation and the unemployment problems in the kingdom of Saudi Arabia providing an comprehensive analyzes of the various factor like competitiveness and productivity on one hand. On the other hand analyze the benefits of the Saudisation to the private sector enterprises. As far as performance is concerned it's very important to evaluate growth indicators and the service models. The government can work on strategies and proper planning helps resolving the problem of unemployment.

3. Literature Review:

The background of the research In order to meet the economic growth and the development of the country, Saudi Arabia, depend on the oil and the labor brought forward from the overseas. The term "Saudisation", came into existence in the picture in 1985, but the actual picture drafted out in the year 1995. Saudisation is determined as an essential part dealing with replacement mechanism of the expatriates' employees around the kingdom, they work on the two notions to lower down the level of the unemployment and on the other hand they try to make sure the market flow in a significant way. The main aim of the policy is to manage job opportunity for the Saudi people as it was previously introduced in the first five year plan in early 70's, till date most of the jobs are still occupied by the foreign employees till start of 20th century. Where government regulate the policies provides measures while replacing the expatriate with the Saudi workers however, stepping to ladder of creating an environment opportunities to local people. Barrientos.A., Madhi.S.T., 2003explains the employment and the development of career in KSA(Kingdom of Saudi Arabia), replacing the non-Saudi people with the Saudi national employees. The nationality and the gender are the main points of inferences on the basis of both the facts the differentiation is made regarding the employment and development opportunities. For the exploitation and the exploration of the oil refinery in the year, 1930 overseas labor force had been entertained more than 90% of the population lies in the private sector for the non-Saudi employees. They are differentiated on the basis of the opportunities in career, flexibility, working conditions and lastly the pay scale among the Saudi and the Non-Saudi workers. Employee's benefits provide the provisions boosting the morale while providing proper education and training covering non-technical education Alawiyat. Al. A. 2010. The private segment are cutting down on the non-Saudi workers and employing more Saudi workers after teaching them with proper training and development programmes. The productivity and the competitiveness within the framework of the economy there was need of Saudisation to meet those criteria's.

The social and the economic significances are taken into consideration while dealing with the employment barriers for labor. The youth tends to be the main focus under the Saudisation program as maximum unemployment lies within this segment. However, the employment strategy targeting the 100% employment opportunities to the Saudi employees falling in private sector, working on more than 75 training centers with long-term planning with professional and vocational training in particular fields. Due to the extensive welfare system the Saudisation develops well-suited potential, competitive and more diversified. Supporting all the group of the society and to implement the policies of the Saudisation signify that the government, public and the private sector have to be effective and efficient Rahman.S.M., & Dosary.A.S. 2005.

"The term motivation is defined as strength helps in influencing the industry while formulating a pathway towards the performance of employees". It is defined as boosting the amount of enthusiasm to handle the hard work (strength) towards a desired objective (Course of action), for a definite era. Steven et al (2005).

The various aspects of Human resource Management comprises of training & development helps in matching the spirits of learning while covering all the levels of the hierarchy. Motivation and proper training helps the organization to develop a work environment where employees work as a team towards the attainment of desired goals. However, if the employees are satisfied with the environment and benefits can immediately results providing quality outcomes. Bakar. A.H (2009). The private sector was emphasized well with respect to development-plans as its on mend with an aim of becoming pillar of free market activity within the context of the economy. The Saudisation mark its presence with an outstanding implementation assimilation of social worker and the local person are there due to the unemployment Buraey.A.A., Sadi.M.S, 2009.

This study focuses on the behavior of the Management and employees working in private sector organizations. The PMS helps while encouraging the Performance of employees and thus, the study highlight the difficulties encountered while evaluating PMS.

The unemployment rate varies as more than 60% of private sector organizations fall under the same segment. Bakar .A.H. (2009), the expatriates do short-term renewable contracts based on the performance mechanism, Human resource management plays a vital role using motivation tool so that they can get benefits against the performance. Skilled employees help attaining proper training while maintaining the image of the organization, adds to the expansion. Training and development for proper job satisfaction techniques proves to be beneficial to skilled workers. As explained by Bakar .A.H. (2009) "The possibility that organizations in the Arabian Gulf countries believe that while investing in such tools there must be a very high dealing with Human Resource Management practices are deemed to be too expensive. But, there thinking got change when they look over the policy of the Saudisation as self-motivation is there in Saudi technique and HRM will prove to be beneficial for determining the productivity and the competitiveness in commencing future.

The government regulated some strategies while extending the employment structure relative attractiveness while working in a private sector in terms of difference in wages among the Saudi and non-Saudi workers, restricted entry for the private sector while lowering down the available benefits. Prompt dismissal of the expatriates with adequate disparities targeting low segment in labor mobility, also, gaining access to more capital budget while increasing non-free trade zone area for foreign investment and while outsourcing the activities of government. Number of new techniques for the employee benefits building up high class vocational and educational training with consent of providing them grants and other benefits while promoting self-employment practices Looney.R, 2004.

In the year 2008, the workforce shows an increase of more than 4 million, the employees who have been working in the private sector saw one million rises during 2008, as reported by Saeed Gobash, Minister of Labor reported in gulf news Sambidge.A, 2009.

The refurbishment for the labor market is there to hinder the competitive and economic diversification. "kafala" being introduced to the people in terms of benefits therefore, need to regulate the workforce (Reuters, 2010).

Shaikh.H. 2005, the problem can be resolved as explained in khaleej times, "traditionally, Saudis have been business people," the media and other professional bodies taking measures to teach the Saudi men and the women the field of mass communication SAMC ( Saudi association for media and communication) and on the other ALFAC( Riyadh-based Alfaisal International Academy). Both the programmes are planned to provide training to as many Saudis as possible to make them make a stand in the present global scenario. However, they are accelerating not only in the nation but, also crossing borders.

The literature review will help to correlate the data collected in the primary research as the literature review gave a brief of the Saudisation, the private sector organization trends and some important information extracted from the In order to face the challenges of the global market the training and development practices are introduced among all organizations, there main emphasis are on the new technologies which helps the employees to perform in a particular environment. After the sixth five year, development plan introduced by the government of the Kingdom of Saudi Arabia, Industrialization status has been taken into serious consideration. The plan gave rise to more involvement of the private sector organization for the better development techniques. They started working on the better human resources while forming a proper technology base. However, the seventh plan emphasize up on the advanced scientific and new technology trading blocks. The training and development techniques play an important part as by determining a best motivational tool they can attain proper satisfaction level of the employees. So, in order face the challenges of the Globalization the private sector organization working on developing the technical & technological areas. (i.e. from the year 2000-2004 emphasize on the expansion of the economy of the Country)." Bureau of near Eastern Affairs, 2010.

4. Research Design:

The main aim of the research design is to set the primary objectives or key aspect of the research. Both the qualitative and quantitative approach is taken into consideration as the study focus on the exploratory strategy and the research will follow survey method. The research formulates different combination of the research approaches including the qualitative and quantitative.

Research Process:

The research process is explained in a diagrammatic form to show picture of what the researcher is planning to do thereafter, followed by a research design. The main objective of the research is determining the benefits of the Saudisation, what will be the approach to the problem. Thereafter, outcome and the information phase is there for a proper research design.

5. Research Methods:

The main focus of the study formulating a research approach starts with the primary sources of the data collections using the questionnaires, surveys, and the personal interviews with the user groups and the classification of labor forces. Qualitative data been collected using these methods helps in explaining the true picture of the problem and up to what extent the current trends of Saudisation proves to be beneficial resolving the unemployment problem through the sample population. The quantitative data will be collected looking into various reports from labor industry and portrays to other segments as well. The different business sources, case studies, survey methods and lastly, data sets available from enormous resources like those of e-marketer providing up to date database while acquiring subscription and then, we can use it. Some important journals will also be collected like those of business reviews and other important journals from different databases. Study focuses both the research approaches. The main aim of the research methodology is to set the primary objective or key aspect of research. The exploratory approach is taken into consideration but the nature and the research is Descriptive. The quantitative and quantitative research is taken into consideration and the sources of the data is based the internal and the external factors whereas, the internal factors deals with the already proposed data and when some data requires further processing. On the other hand, the external factors comprises of the published materials, journals from the library service and management databases. Moreover some case study and company reports from the internet are accessed to filter the data supporting the Saudisation in private sector management.

5.1) Quantitative Research:

The execution of the data will be taken from the empirical sources that prove to be relevance as compared to the topic, Annual reports of the company and different data sets available for the e-marketers practices. Well presentation of the data using different standard format of figures, tables, charts, pie graphs, histograms demonstrating different trends and growth patterns collected from the random sampling. G20 meeting reports of labor and employment minister: Washington DC, Research on Kingdom of Saudi Arabia, Business weeks and many more direct links.

5.2) Qualitative Research:

The research hinders individual insights therefore, acquiring personal interviews, survey techniques of stratified random sampling, questionnaires which will focus the important issues and in-depth insights among the youth. Analysis will look forward into a number of published and non-published data sources which are required to validate the finding and pattern of usage and growth trends. The secondary research is divided into internal and external factors as to formulate the research strategy the above diagram from the Kress, 2008 explains the fact that how the research is been formulated. The Annual reports, Books, Journals and data from the Internet search engines helps whether, Saudisation proves to be beneficial for resolving unemployment problem. Thus, the objectives of the research are well presented with the help of secondary data where (Brief literature review and Research approach) to analyses the research finding however, primary data is collected to analyze the youth is unemployed and some of the private sector companies find it difficult as a matter of claim to different senates to adapt needs towards Saudisation.

Secondary research



Requires Further Processing

Published Material

Ready to use

[Diagram: Kinds of Secondary Data Source: Kress, 2008]

5.2.1) Target Population:

The main focus of the research is to target the youth and the age ranging from 15-26 like those who are studying and on the other hand to those who already completed their studies and looking for part-time, contract and full-time job. This data will provide the facets and thereafter, those facets will be further converted formulating quantitative data.

5.2.2) Sampling Method:

The sampling method applied is probability sampling helps to provide equal opportunities in order to make selections and proper utilization of the random selection is there. Possess minimal effect while making inferences between results from the sample with those from the population. The biasness is also eliminated ever since the subjects are selected randomly. The stratified random sampling is also determined as comparative or proportional random sampling. These include grouping of the population on the basis of age, status, gender, work-experience, nationality, etc. Thereafter, final list been selected using strata but, with no possibility of data overlapping. This technique is taken into consideration to study the youth within the population and therefore, tends to be more preferential over the other sampling techniques while analyzing same group of population.

5.2.4) Sample Size:

The sample size taken for the research is 450. i.e. n= 450.

5.2.5) Data Analysis:

The data analyzes phase correlates the relationship between the quantitative findings matches those of the qualitative information collected for the research and work it out if any mismatch of the information or on the other hand deceptive factors are there posing an adverse effect on the data collected if some mismatch are there than it will also affect the analyses. Data analysis also helps to strengthen the linkage while coinciding between the two researches qualitative and quantitative. 10 in-depth interviews with the Human resource professionals within the private sector, they are kept to be informal. Please find the list of appendix they show how the analysis will follow and which will try to cover the objectives and relevancy of the research.[ Appendix A, B, ].

[For the survey questionnaire:]

6) Access and Ethics:

The access to the data possesses some barriers as the rules and regulations of the organization are taken into consideration however, Ethical Consideration are taken into consideration as copyright material was excluded from the research, almost all the data used for the research is been extracted from the library services and the Business directories. Appropriate conclusions and recommendation will be drawn on the basis of the secondary data and primary data of research.

7) Limitation:

1) Unit measurements of the collected data sometimes inappropriate and sometime the time constraint lies on the fact that due to the exploratory study. Although, there is some applicability of interest of population also lack behind in the research paradigm.

2) The data collection is of secondary research leads to generalizing of data.

3) The actual data of the companies is difficult to access so; there is limited data for the private sector organizations.

8) Time-scale:

The schedule for dissertation will follow with utmost adherence while writing the research in accordance with proper formatting/structure pre-defined during the certain period of research.

Serial No.




Collection of Data



Qualitative Analysis

(Literature Review)



Finalizing the results into Thesis