A major study submitted to the King says the sponsorship system for expatriate workers curtails competitiveness and hampers human resource development in Saudi Arabia. It says the immigration regulations and recruitment policy do not help attract outstanding and competent workers and instead draws low-productivity job-seekers. The study also concludes that the Saudization policy has flopped. Conducted by the Riyadh Economic Forum, the study entitled “Vision for Development of Human Resources" diagnoses the economic, planning, regulatory and operational dimensions of the Saudi labor market. It was submitted to King Abdullah, Custodian of the Two Holy Mosques, along with a new vision for integrated development of the workforce based on the success of other countries in this regard. Among the several problems identified in the study is weak coordination among the ministries involved in manpower development, such as Education, Health, Labor, Economy and Planning and Finance. Other problems identified include: • widespread "Wasta" or favoritism in employment • reluctance of working Saudis to relocate according to job needs • their stubborn preference for jobs in government rather than business • poor commitment of businesses to ensuring workers' rights • Saudi society's negative view of vocational jobs • a tremendous increase in the number of graduates from "theoretical colleges" who do not meet the needs of the labor market • huge numbers of illegal residents competing with Saudis for jobs • limited areas of employment for Saudis • businesses retrenching Saudis • scarce job opportunities for Saudi women job seekers. • weak incentives for Saudis who find employment and prove to be outstanding workers. • limited training opportunities for male and female jobs seekers • weak on-the-job training programs • lenient disciplinary rules to deter negligent workers. The study says that unemployment among nationals is rising and that the Saudization policy has not achieved any of its projected results. It says the new labor legislations stipulating a minimum 75-percent Saudization rate is unsuitable for some economic activities. The study faults the private sector for preferring foreign workers and paying them higher salaries than Saudis but concedes that the productivity of Saudi workers is weaker compared to foreign workers. The broader problems identified in the study are the state of the educational system and weak coordination between the public and private sectors in human resource development programs. It says the private sector is incapable of competing with the government sector in educational projects, and it is discouraged from helping develop the national workforce because of unattractive investment opportunities. The study also blames the education system for its learning-by-rote method which stifles creativity and innovation. It says the focus of secondary school and university education on theory is among the factors crippling human resource development. Besides, student counseling methods currently employed are incapable of directing students to the job specializations in demand.. Training in applied and scientific specializations is weak and admission capacities are limited in higher educational and professional institutions, particularly for scientific and technical studies. Other factors cited are insignificant private sector participation in the decision-making councils of educational and training institutions and aging regulations and legislations governing the development of human resources.
