Are we witnessing another positive step towards the welcoming of foreign talent in Saudi Arabia? It is now a reality: the spouses of expatriates in Saudi Arabia can now seek employment locally. But this measure is nevertheless subject to conditions. Let's explore the hows and whys.
Jobs for the spouses of expatriates in Saudi Arabia
The measure emanates from a policy decision of the Saudi Minister for Human Resources and Social Development. From now on, the husbands and wives of foreign professionals will also be able to work for Saudi companies and businesses. This measure also applies to close relatives of expatriates.
However, there are some conditions attached to this new rule. The Ministry indicates that the spouse, as well as the close relatives, must possess the required qualifications to be considered for the position. Furthermore, they can only apply for some specific job vacancies, which are not concerned by the Saudization policy. Hence, the targeted foreigners cannot apply for jobs reserved for Saudi citizens.
As a reminder, the “Saudization” of employment (nitaqat) is a national policy aimed at favoring Saudis for local jobs. Saudi companies have pledged to consider Saudi citizens first and foremost for vacant positions. Thus, over and above fulfilling all the conditions attached to the recruitment process, foreign professionals' spouses and close relatives will be subjected to a qualification test.
Why this policy decision?
The Ministry's policy decision aims at attracting foreign talents to Saudi Arabia. The Covid-19 pandemic, the inflationary crisis and the “Saudization” policy have caused a significant drop in the number of foreign workers in the country. There were a little over 13 million expatriates in 2019. In 2021, that number had dropped to less than 12.5 million. However, many expatriates were all set to leave the country in 2019 as Saudi Arabia faced an economic crisis. The economy was already struggling to pick itself up since the sharp collapse in oil prices in the second half of 2014. Between 2017 and 2019, 1.9 million expatriates left the country, representing a 22% decrease in three years.
For expatriates and, most importantly, international talent to come back to Saudi Arabia, they must be provided with favorable conditions. The measure for spouses and close relatives of expatriates falls within the realm of a comprehensive economic expansion program. In its growth plan for the Saudi Arabia of the future, named “Vision 2030”, the Kingdom plans to accelerate its economic diversification. Although oil production (+22% growth rate) remains the driving force behind the Saudi economy, it is far from being its only source of growth. Faced with the scarcity threats and challenges on oil production and the urgency of climate change, Saudi Arabia is successfully investing in non-petroleum resources (+8% growth rate). According to the World Bank, the Saudi growth rate has reached more than 8.3%.
Saudi Arabia's “soft power”
The dynamic new boost to the non-petroleum sector is better observed through the decrease in the unemployment rate (9% in 2022). This increased activity directly and positively impacts the employment sector, both locally and internationally. This is in line with the “Vision 2030” plan, where Saudi Arabia accelerates its opening to the outside world. However, to be successful in this endeavor, it is mandatory for Saudi Arabia to develop closer ties with foreign powers. The Kingdom is thus polishing its image and disseminating its “soft power”.
Economy, diplomacy, trade liberalization, and “Saudisation” of the job market: the perfect equilibrium may seem challenging among those seemingly unrelated programs (as illustrated by the policy of prioritizing Saudi citizens for employment). Nevertheless, the Kingdom boasts of having achieved that equilibrium. In fact, Saudi Arabia aims to show its direct competitor, United Arab Emirates, that it, too, can attract international talent.
