Drivers and Consequences of Saudization: Exploring Employer and Employee Perspectives in the Saudi Private Sector

Abstract

Executive Summary This dissertation examines the impact of Saudization on HR practices and employee experiences in Saudi Arabia’s private sector. Saudization aims to increase national employment, yet questions remain about its effectiveness in reducing expatriate reliance and fostering sustainable workforce development. Guided by Human Capital Theory and Institutional Theory, this study evaluates how localisation policies shape organisational practices, employee perceptions, and labour market outcomes.

Methodology A structured questionnaire was used to survey 200 Saudi employees and human resource professionals working in different private-sector organizations. Both descriptive and inferential statistical methods like correlation and regression were used to test the research hypotheses. Data collection was performed by means of a questionnaire with a blend of closed-ended (quantitative) and open-ended (qualitative) items. Quantitative responses were analyzed using descriptive and inferential statistics while qualitative responses were thematically analyzed for additional depth and context.