The nationalisation scheme has contributed significantly to increasing the number of Saudi employees registered with the General Organisation for Social Insurance (GOSI).

The figures were disclosed by Saad Al Hammad, spokesman of the Ministry of Human Resources and Social Development, who said 1.6 million establishments are registered with the Nitaqat programme in the Saudi employment market.

“The ministry is striving to provide proper jobs for male and female citizens and increase the share of their participation in the local job market.

“The ministry is working in accordance with its labour market strategy that aims to develop the job market and raise its efficiency,” he added.

Al Hammad said the ministry recently launched the new version of the ‘Updated Nitaqat” Saudisation programme in line with ministry’s strategic transformation initiatives that aim to integrate economic classifications to be 32 activities instead of 85 activities.

The revised second version is expected to create 340,000 jobs by 2024 and simplifies the compliance rules for businesses.

The Nitaqat programme was first launched in 2011 to encourage the localisation of jobs and set a minimum wage for Saudis in the private sector.

Saudization is officially known as the Saudi Nationalisation Scheme or Nitaqat, a policy implemented by the Ministry of Human Resources, whereby Saudi companies are required to hire Saudi Nationals on a quota basis.