Private sector Saudization falls 37% in 2016 on lower wages

The Saudization rate in the private sector has dropped by 37 percent year-on-year (YoY) in 2016, Saudi Arabia’s Ministry of Labor and Social Development said in its annual report.

The number of newly appointed Saudi employees in the private sector dropped to 233,300 last year from 368,500 in 2015.

Re-employed Saudi nationals were 15,701 in 2016, down by 39 percent from 25,702 in the previous year.

Saudization in the private sector was affected by lower wages when compared to salaries in the public sector.

Private firms in the Kingdom also usually lack unified safety and vocational heath systems and fail to provide a suitable work environment for women, which discourages Saudi employees, the report said.