Introduction
There’s no denying it: Saudi Arabia is undergoing one of the most ambitious economic and social transformations in the world today. And yet, what’s often missing from the headlines is what it feels like to work here on the ground – especially in HR, workforce planning, and business operations.
As a business leader and global talent acquisition specialist, I’ve spent the last few years supporting companies with global hiring needs, including within the Kingdom. It’s not just about posting job ads or sitting through interviews. It’s about understanding real business needs – through strategy, open conversations, and hands-on collaboration.
In my nearly one year of living and working on the ground in Saudi Arabia, I’ve seen firsthand how challenging it can be for foreign companies to build teams and integrate locally. On one hand, it requires a clear understanding of the country’s evolving labour regulations and the ability to apply them correctly in day-to-day operations. On the other, it demands fluency in navigating digital platforms like Qiwa, GOSI, and Mudad, which are now essential tools for compliance and workforce management. These, combined with interpreting new updates that can change overnight, are also what keep this country so vibrant and on edge (in every positive way!).
The Shift is Real
Source: EyeEm on Freepik
The numbers speak volumes. According to the Saudi Arabia Ministry of Economy and Planning, the Kingdom’s non-oil GDP grew by 4.4% in Q4 2023. Foreign direct investment is on the rise, with over $13 billion recorded in 2023 – a clear signal that global businesses are taking Vision 2030 seriously. Sectors such as logistics, fintech, and tourism are heating up rapidly. There’s a clear appetite for talent – but also an impetus to localise teams.
What is Vision 2030 & Why it Matters
Vision 2030, launched in 2016, is Saudi Arabia’s ambitious plan to diversify its economy beyond oil and empower its people. It focuses on building a vibrant society, a thriving economy, and an ambitious nation – all of which are reshaping how businesses operate here.
Under Saudi Arabia’s Vision 2030, human resource services and workforce management have been elevated to the heart of the Kingdom’s national transformation strategy – driving a shift from a “population dividend” to a “talent dividend.” Through reinforced Saudization policies and the rollout of key digital platforms such as Qiwa, GOSI, and Mudad, the government is accelerating the standardisation and transparency of core employment functions, including compliance, social insurance reporting, and payroll management.
At the same time, businesses are navigating rising compliance expectations and growing operational complexity. From fully integrating HR workflows with government platforms to adapting to frequent regulatory changes, mismatches in local talent supply and demand, and increasing restrictions on foreign hires – the challenges are real and evolving. These shifts are pushing companies to move towards more professionalised, tech-enabled models of human capital management.
For HR leaders, Vision 2030 isn’t just a strategic backdrop – it’s actively reshaping how teams are built, managed, and supported. Saudization targets continue to rise, and compliance is only part of the equation. As the economy diversifies, the demand for specialised talent is outpacing local supply. This is driving a stronger focus on reskilling, enhancing talent mobility, and expanding recruitment efforts across the region – all while navigating a more digital, policy-driven HR landscape built for the future.
Understanding Saudization
Source: htentertinment on Freepik
Saudization, a key part of Vision 2030, is the national policy aimed at increasing the employment of Saudi nationals in the private sector. It’s not new, but enforcement has intensified. The Ministry of Human Resources regularly updates Saudization quotas by industry and job type, and businesses not in compliance may face restrictions on work permits and access to key government services.
For HR teams, Saudization is a strategic consideration. Quotas vary by sector, company size, and job function, meaning companies must segment their workforce.
The result? Workforce planning in Saudi Arabia isn’t just about hiring – it’s about hiring strategically. Knowing which roles must be filled locally, which can be expatriate-led, and how to report all of this through platforms like Mudad and Qiwa is now essential.
Finding the right balance between meeting Saudization targets and bringing in specialised expatriate talent is a complex but critical part of sustainable workforce management.
Final Notes from the Ground: What Businesses Should Prioritise
1. Local Strategy is Essential
Success in Saudi Arabia today demands more than market entry – it requires an informed, agile workforce strategy that aligns with evolving regulations, Saudization targets, and cultural expectations.
2. Master the Digital Infrastructure
Government platforms like Qiwa, GOSI, and Mudad (a digital payroll and compliance system launched by the Ministry of Human Resources and Social Development in Saudi Arabia, aimed at creating a cloud solution that SMEs can efficiently utilise to process their payroll and comply with the Kingdom’s Wage Protection System or WPS) are now central to business operations. These aren’t just back-office tools – they’re integral to compliance, payroll, and workforce planning. Companies that treat them as strategic systems gain a clear advantage.
3. Keep Your Ears to the Ground
Regulations are evolving rapidly, and what worked last quarter may not be effective today. Staying informed – whether through local advisors, in-market teams, or close monitoring – is crucial to making confident and timely decisions.
Source: Freepik
Saudi Arabia’s transformation is in motion – and for businesses that are ready to adapt, it’s a time of opportunities and vast possibilities. The key is knowing where to start and who to work with to help you navigate the changes with confidence – and build for the long term.
So yes, these are my notes from the ground – nothing fancy, no promotion. And if you’re like me, trying to navigate this space, I’m always happy to connect to exchange ideas and new perspectives.
