Saudi Arabia is undergoing a transformative shift, especially within its consultancy sector, as part of its broader Vision 2030 objectives. The Kingdom is working diligently to reduce its dependency on foreign labor, particularly in high-skilled professions. In line with this, the Saudi Ministry of Human Resources and Social Development has mandated that 40% of consultancy workers must be Saudi nationals by March 2024. This move is poised to reshape the consultancy sector and the broader business landscape.
The localization plan aims to boost local employment, primarily in fields like financial advisory, project management, and cybersecurity. This initiative is part of a broader effort to develop local expertise, streamline operations, and stimulate economic growth. The push to Saudize key roles will enable businesses to better understand and navigate regional regulations and market conditions.
However, the shift is not without its challenges. Many companies face the task of quickly upskilling Saudi professionals, who will now fill roles previously held by expatriates. To tackle this, companies are encouraged to create mentorship programs and invest in professional development initiatives. These efforts will help bridge the skill gap and ensure a smooth transition as more Saudis enter the consultancy field.
Industry experts see this initiative as a positive step towards long-term sustainability. Having local professionals in key positions will allow businesses to be more agile and responsive to Saudi market nuances. This change also aligns with the country’s vision of building a knowledge-based economy, reducing capital outflow, and creating high-value jobs for its citizens.
While this transformation brings opportunities, it also presents obstacles. Mid-career professionals are scarce. Many young Saudis may gain early career experience in consultancy but retaining them beyond the first few years is a challenge. Companies need to devise strategies to retain talent, particularly in specialized sectors like defense, tourism, and entertainment. These sectors are increasingly a focus of Vision 2030.
The localization initiative will also drive changes in how consultancy services are delivered in sectors like construction, healthcare, and tourism. Local professionals will understand Saudi Arabia’s culture, laws, and market dynamics. This will make companies more competitive and better suited to tackle country challenges.
In conclusion, Saudi Arabia’s localization plan for the consultancy sector is a bold move that aligns with Vision 2030’s broader goals. While it presents challenges, the long-term benefits of building local expertise, fostering innovation, and creating a sustainable economy are immense. By investing in local talent, the Kingdom is setting the stage for a more self-sufficient and resilient consultancy sector that will play a pivotal role in shaping its future.
References
Arab News. (2024, May 21). Saudi Arabia’s localization plan is reshaping the consultancy sector. Arab News. https://www.arabnews.com