Current Status

On Track — The number of Saudi nationals employed in the private sector has grown substantially since 2016, reaching approximately 2.2 million by 2024. This reflects the combined impact of Saudisation mandates, skills development programmes, and the creation of new private-sector industries.

Key Metrics

Trend Analysis

The growth of Saudi private-sector employment from 1.2 million to 2.2 million represents an 83 per cent increase that has fundamentally changed the composition of the Saudi workforce. Historically, the vast majority of Saudi workers were employed by the government, while the private sector was dominated by lower-cost expatriate labour. Vision 2030’s labour market reforms have restructured this dynamic through a combination of mandates, incentives, and market creation.

The Nitaqat system has been the primary policy instrument. By classifying private-sector companies into colour bands based on their Saudisation rates — with employment service access, visa issuance, and contract renewal tied to compliance — Nitaqat creates strong incentives for Saudi hiring. The system has been progressively refined, with sector-specific Saudisation targets calibrated to reflect the availability of Saudi workers with relevant skills. Sectors such as retail, hospitality, and telecommunications have seen dramatic increases in Saudi employment, while sectors requiring highly specialised skills (such as certain manufacturing sub-sectors) maintain lower but growing Saudisation rates.

The wage subsidy programmes administered through Hadaf (Human Resources Development Fund) have reduced the cost gap between Saudi and expatriate workers. The Tamheer programme provides on-the-job training with stipends, easing the transition from education to employment. The expansion of vocational training through the Technical and Vocational Training Corporation (TVTC) has improved the skills alignment between Saudi workers and private-sector requirements. Crucially, the creation of new industries — tourism, entertainment, sports, technology — has generated employment opportunities that are more attractive to young Saudis than the traditional retail and construction roles that historically characterised private-sector options.

Methodology

Saudi private-sector employment is tracked through the Ministry of Human Resources and Social Development’s labour market information system, which draws on the General Organisation for Social Insurance (GOSI) registration database. Every Saudi national employed in the private sector is registered with GOSI for social insurance purposes, providing a comprehensive and near-real-time count. The data captures employment by sector, gender, age, salary band, and region. The metric includes both full-time and part-time employees, with part-time converted to full-time equivalents in some analyses. Self-employed and gig economy workers registered with freelance licences are increasingly captured but may be undercounted. Data is published monthly with a lag of approximately 45 days.

Related Priorities

Saudi private-sector employment is the operational outcome of multiple converging policy streams. The Unemployment Rate achievement was directly driven by private-sector job creation for Saudis. Female Labour Force Participation growth has been primarily in the private sector. SME GDP Contribution depends on small businesses employing Saudis. The Human Capability Programme aims to equip Saudis with skills demanded by the private sector. The Private Sector GDP Contribution target depends on a Saudi workforce large and skilled enough to staff the growing private sector without excessive dependence on expatriate labour.

Outlook

The trajectory suggests continued growth toward 2.5 to 2.8 million Saudi private-sector workers by 2030. The key drivers include continued Saudisation mandate enforcement, the operational phase of giga-projects creating permanent Saudi-staffed positions, financial sector expansion, and the maturation of the technology and tourism sectors. The challenge is maintaining the pace of Saudi job creation while ensuring wages and career progression are competitive with government employment, which continues to offer higher average wages and better benefits for comparable roles.

The Vanderbilt Portfolio identifies salary convergence as the critical long-term enabler: until private-sector compensation fully closes the gap with government employment, some friction in Saudi private-sector recruitment will persist. However, the structural trend is firmly positive, and the expansion of attractive private-sector roles in technology, financial services, and professional services is creating a new generation of Saudi private-sector professionals, a trend further explored in the saudisation effectiveness assessment.