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SABIC controls over 10% of the international petrochemical market (30). It has entered into joint ventures and partnerships with foreign organizations like Shell, ExxonMobil, and numerous other American, European, and Asian companies (Cordesman, 2006). SABIC is a true reflection of the intention of the government of Saudi Arabia to involve private sector investment and participation in the growth and development of the nation. As such, 70% of SABIC is owned by the government while the remaining 30% distributed among private owners (SABIC, 2011).
The government further plans to divest the various company holdings and accelerate the privatization process. In the light of Saudi Arabia’s policy to encourage Saudization or to ensure that the private sector organizations employ a substantial number of local employees (), it is essential to study the factors that help in attracting recruitment and which keep the local employees motivated and loyal to the company. While the Saudization program was initiated as early as 2006, to increase the private sector local workforce to 30%, the current statistics reveal that the actual fraction of local employees in the private sector is less than 10%.
mean that there is a low level of motivation among the local employees either to get selected in the private sector or to work in such an organization. This is very little research undertaken within the private sector to understand why the sector lacks in local participation, or what makes it attractive to the expatriates and not the local workforce alone Al-Eisa, Furayyan, & Alhmeoud, 2009). However, this is a major issue that the government of Saudi Arabia is facing, and hence there is a need to study the problem intricately to S SABIC provides a dynamic environment where the changes that facilitate privatization are visible as can be seen in the recent changes to its human resource policies and packages.
The organization employes a vast majority of both local and foreign workers and has been tasked with keeping the workforce trained and qualified as well as motivated to work.
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