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Saudization and Nitaqat Policy in Saudi Arabia Economy Report


Report On Evaluation Of Any Sector Of Management With Relevance To Saudization And Nitagat Policy. Saudization and, Nitagat policy is a policy that is employed by the government of Saudi Arabia with a purpose of increasing the employment rate. This applies to the Saudi Arabians citizens and in deployment of the foreigners working in Saudi Arabia who have greatly increased in number for the past years in Saudi Arabia. The Saudi Arabian government has been importing expertise labour from abroad to put their respective skills to the intended development in Saudi Arabia. This action, which the Saudi Arabian government decided to choose, has become a problem to the nationals, of Saudi Arabia because they are remaining unemployed. The Saudi Arabian government has recognized this advancing problem and has implemented measures that will solve it (Blythe 39).

Findings. One of these measures is the establishment of the saudization and nitagat policy that the government of Saudi Arabia is usually pushing hard to ensure that the respective companies in Saudi Arabia uphold this policy at all cost. One of their ways that they are implementing saudization and natigat policy is by putting penalties to those companies that do not comply with this policy and giving incentives to the companies that comply with the policy. Saudi Arabia is an established kingdom that is really looking for development in the future and that is why they thought acquiring expertise outside their country would help. However, the saudization and natigat policy has really changed the views of the government of Saudi Arabia and even of the other countries that were being given contracts in Saudi Arabia (Blythe 33).

The saudization and natigat policy is calling for the companies in Saudi Arabia to ensure that they employ the nationals of Saudi Arabia and deploy the expertise foreigners working in their firms. The companies in Saudi Arabia are under four categories in respect to their size and performance in relation to how they comply with the saudization and natigat policy in increasing the Saudi Arabian employment rate to its nationals and decreasing the overgrowing rate of the foreign expertise working in Saudi Arabia. These four categories include the blue also referred to as the excellent, the yellow, and the red and lastly the green.

The saudization and natigat policy has prevented the companies found in the red and yellow category from renewing the visas of the foreign expertise working in their companies and hence having no option than for these companies deploying them. This will make the company to have some vacancies that ought to be filled by human labour where the government of Saudi Arabia encourages the respective companies to employ the Saudi Arabian nationals. They usually give these companies a period that does not exceed 11 months to have recruited and selected the Saudi Arabian nationals to fill the respective vacancies that have been left empty after the foreign expertise have been deployed. Companies in Saudi are competing with one another to comply with the saudization and natigat policy because of the incentives that they derive from the Saudi Arabian government as briefly mentioned above in the report. Some of the incentives that the Saudi Arabian companies are getting from the government include gaining governments contacts that definitely are highly beneficial to the respective company. There are some sensitive professions such as doctors and engineers that the government of Saudi Arabia had decided the saudization and natigat policy would exempt. However, even them they are being affected by the saudization and natigat policy because each company including private hospitals are not renewing visas of their foreign doctors, nurses so that they can deploy them, and in turn get the government incentive.

Most of the companies in the private sector are majorly known to be profit-making organization all over the world and not in Saudi Arabia alone. These private companies have one common strategy of minimizing their cost of production and maximizing their profit ratios. This is the reason why the private companies in Saudi Arabia are finding that the foreign expertise that they have been employing is even adding their cost either in the production of goods or services. Majority of them do consider this saudization and natigat policy as a corporate strategy for them to attain their goals and objectives, which mainly is profit maximization. This is a true fact because when they get the government incentives which also may include subsides it will automatically cut their cost of production and also when they do employ the Saudi Arabian nationals in their respective firms they will also automatically cut the high cost that they used to incur in labour. These two aspects will eventually cause the respective companies to start realizing high levels of profits that are attractive to all companies that are in the private sector in Saudi Arabia. Among the key areas in Saudi Arabia, that demand foreign expertise is the nursing field.

A Saudi Arabian hospital have thousands of nurses working in their respective hospitals and is still in need of others but the private hospitals are ignoring this demand for foreign nurses to work for them and instead deploying them and employing nurses that are Saudi Arabian nationals. The countries that have their nationals working in study in Saudi Arabia are facing the effects of the saudazation and natigat policy because they are losing the contracts that they were previously enjoying. They were not getting problems such as unemployment for its citizens but because of the large numbers that are being deployed in Saudi Arabia and returning to their original country; these countries have started to face this problem of unemployment. They have instead started to give capital to these deployed experts so that they can open their own business to find a living for themselves. They are using this strategy to deal with the scarce job opportunities in their respective countries and the high demand for employment. If it is professional doctors that were working in Saudi Arabia who have been deployed and returned to their original countries, they are been given incentives to start their own clinics, dispensaries or even hospitals in their respective countries to ensure that their skills do not go into waste but rather benefit their countries. One of the countries that Saudi Arabia had given contracts to offer their expertise in their country includes Pakistan. It had approximately 1.8 million foreigners working in Saudi Arabia, Egypt that had approximately 1.3 foreigners working in Saudi Arabia and lastly Philippians, which had approximastely1.2 foreigners working in Saudi Arabia (Brassington & Pettitt, 138).

The total number of the foreign expertise that is working in Saudi Arabia is approximately eight million. This means there are eight million Saudi Arabian nationals that are unemployed and if the saudization and natigat policy will be implemented these eight million of the unemployed Saudis will eventually get a job. Even though the saudization and natigat policy has enabled the Saudi Arabian government to solve the problem of unemployment, there are also some negative implications that do accrue from this particular policy. Saudi Arabia as earlier mentioned is a kingdom that is looking forward for major developments such as construction of major modern cities that require high expertise if by any chance the Saudi Arabian government has to archive their set goals and objectives. If they do deploy the experts that they already have and even not employ those that they actually need then they will lack the skilled labor to perform professional task. This will in turn make their country to remain undeveloped or attain slow development. That is why the saudization and natigat policy has categories. Some companies fall under the green category as mentioned earlier in this report where these companies have a chance to sponsor and renew the visas of those expertise that have been deployed in those companies that fall under the red and yellow categories. This stance is enabling the Saudi Arabian government to remain with at least little foreign expertise that can help the country at large to archive its anticipated plans, goals and objectives that require high skills (Brassington & Pettitt 129).

The few remaining foreign expertise that have been retained by those companies that fall under the green category assist the Saudi Arabian nationals to acquire the expertise skills by taking them through the training and development programs. This in the long-term will make the Saudi Arabian nationals to be able to run and head key areas in their country that will assist the achievement of the Saudi Arabian development. The saudization and natigat policy will have no major negative implications because of deploying the foreign expertise. This is the plan of the Saudi Arabian government and the strong facts and evidence obtained from various sources of research second and supports this plan (Blythe 41).

Recommendation. The saudization and natigat policy is highly recommended even to other countries worldwide that have majority of the their countries’ affairs being run by foreigners because a good, effective governance does not only consider economic growth, infrastructure development, political stabilization but also has to look at the wellbeing of its citizens because that is why they are in governance. The well-being of the citizens of the given country cannot be achieved until the citizens are employed and paid salary that improves their wellbeing. Therefore, their government should not deny them those opportunities and give them to foreigners (Brassington & Pettitt 146).

Conclusion

Saudization and natigat policy can be considered to be a marketing strategy that the Saudi Arabian government is employing in its plan to increase the employment of the Saudi Arabian nationals and decrease the employment of the foreign expertise in Saudi Arabia. It is considered as a marketing strategy because of the incentives that the Saudi Arabian government is giving to the respective companies that are found in Saudi Arabia that are very attractive as discussed this report. Therefore, the Saudi Arabian have taken an effective move to giving good governance to its citizens and they should work tirelessly to ensure that the saudization and natigat policy are being observed by any sector of retail management in Saudi Arabia (Blythe 37).

Works Cited

Blythe, Jim. (2001). Essentials of Marketing. Harlow: prentice hall. Print.

Brassington, Frances, & Pettitt, Stephen. (2000). Principles of Marketing. Harlow: pretice hall. Print.

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IvyPanda. (2020, May 17). Saudization and Nitaqat Policy in Saudi Arabia Economy. Retrieved from https://ivypanda.com/essays/saudization-and-nitaqat-policy-in-saudi-arabia-economy/

Work Cited

"Saudization and Nitaqat Policy in Saudi Arabia Economy." IvyPanda, 17 May 2020, ivypanda.com/essays/saudization-and-nitaqat-policy-in-saudi-arabia-economy/.

1. IvyPanda. "Saudization and Nitaqat Policy in Saudi Arabia Economy." May 17, 2020. https://ivypanda.com/essays/saudization-and-nitaqat-policy-in-saudi-arabia-economy/.


Bibliography


IvyPanda. "Saudization and Nitaqat Policy in Saudi Arabia Economy." May 17, 2020. https://ivypanda.com/essays/saudization-and-nitaqat-policy-in-saudi-arabia-economy/.

References

IvyPanda. 2020. "Saudization and Nitaqat Policy in Saudi Arabia Economy." May 17, 2020. https://ivypanda.com/essays/saudization-and-nitaqat-policy-in-saudi-arabia-economy/.

References

IvyPanda. (2020) 'Saudization and Nitaqat Policy in Saudi Arabia Economy'. 17 May.

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