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Saudization: the Employability in Saudi Arabia - Research Paper Example

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This study reviews the employment policy named Saudization brought by government in Saudi Arabia. An author of the paper claims that the employment equity between the Saudis and the foreigners is a key catalyst in the growth of the country’s economy…
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Saudization: the Employability in Saudi Arabia
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Download file to see previous pages Saudi Arabia is one of the oil-rich countries in the world today, despite riches it has remained to more of a producer of crude oil with less activity in the processing of crude oil. Foreign companies have capitalized on the opportunity in processing and exporting the crude oil. These companies usually bring their expatriates who take back the money they earn back to their countries. This scenario has influenced to some extent the economic dynamics of the Saudi people, especially considering the fact that unemployment among the youth remains high. Unemployment has direct and indirect economic implications that if not checked can bring a country to an economic instability.
Employment equity between the Saudis and the foreigners is a key catalyst in the growth of the country’s economy. The Saudization policy advocates for a balance in the employment between locals and foreigners, it makes a lot of economic sense, especially given the high inequality that appears. A reduction in the number of foreign employees with a subsequent increase in the number of local employees will facilitate the growth of the economy. When a majority of the population is employed the consumption rates increases, the dependency ratio declines and ultimately the government is capable of collecting more revenue. The purchasing power rises an effort that promotes the local companies because of the expanded customer base (Hindriks & Myles, 2004). The extra income generated is channeled to investments resulting in projected economic development and growth. The reduction in the levels of dependency means that the amount of extra income among the populace rises, this creates an opportunity for implementation of economic programs that can help the country. Increased savings in the banks translates to interest rates, a situation that may result in higher income and diversified income generation.  ...Download file to see next pagesRead More
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