Saudi Arabia initiates wage subsidy program to localize industrial sector

By Amirtha P S, Desk Reporter
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Saudi Arabia
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Saudi Arabia’s Ministry of Human Resources and Social Development and Ministry of Industry and Mineral Resources has jointly launched a wage subsidy program to boost Saudization of the industrial sector in 2021.

As part of the initiative, the government will give 50 percent of the wage for hiring, providing training and qualifying Saudis to take up jobs by the industrial establishments, with a maximum amount of $799.

The program will be implemented by joining with the Human Resources Development Fund (HADAF), Technical and Vocational Training Corporation (TVTC) and the Council of Saudi Chambers (CSC) by providing incentives and support to factories, and attracting national talent to work in industrial facilities.

According to the two ministries, the parties participating in the program will undertake the mission of building a suitable working ecosystem for Saudis, to make them join the industrial sector, and raising the attractiveness of jobs in factories by formulating regulations that would support them.

The plan comes following the activation of the memorandum of understanding signed by a number of bodies including the Ministry of Human Resources and Social Development, Ministry of Industry and Mineral Resources, TVTC, HADAF, and CSC.

As part of the initiative, HADAF will provide support, while the training and qualification will be given by TVTC. The ministries asserted that the program will provide young men and women job seekers in the country with the necessary skills through training sessions. The ministries have noted that the program will work through many paths to attract Saudis to take up jobs in the industrial sector.

The Ministry of Human Resources and Social Development has assigned industrial establishments to create job opportunities for citizens, attract national competencies that contribute to the local economy.

All industrial establishments that have a license from the Ministry of Industry and Mineral Resources can participate in the initiative through the national employment portal ‘Taqat’ to benefit from the support programs.

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