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Abstract
How have efforts to “nationalize” workforces in the Arab Gulf monarchies affected citizen and expatriate employment in these economies? In Saudi Arabia, policies such as the Nitaqat quota system clearly generate jobs for citizens, yet exhibit diminishing returns in the longer term even as they impose considerable costs on expatriate workers—limiting job opportunities and take-home pay. This paper draws on Saudi labor-market statistics to assess changes in Saudization (i.e., workforce nationalization in Saudi Arabia) over the past decade and a half, noting in particular recent changes under the Vision 2030 program of socio-economic change championed by Crown Prince Mohammed bin Salman (MBS). Findings point to notable yet circumscribed gains for Saudi employees that impose new competitive pressure, costs and risks on expatriate workers without fundamentally challenging the Saudi economy’s reliance on non-citizen labor.
Published Version
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