Saudization Growth Program

With the aim of contributing to the achievement of objectives of the Saudi 2030 vision, the Human Resources Development Fund (HRDF) established the Saudization Growth Program. This is a program which encourages businesses in the private sector to recruit Saudi nationals, in order to increase the participation of Saudi Nationals in the workforce. Your business could receive support from HRDF in paying Saudi employees’ wages. The program contributes 15% for male workers, and 20% for female workers; such support continuing for a period of two years.

How to get your business registered in Saudization program

Establishments planning to register in the program need to follow the prescribed procedure. Some of the steps in this procedure can be completed electronically, others required paper documents. However, our T&S team of advisors can help with both. The steps are (in summary) as follows:

    • Registration of your business with the General Organization for Social Insurance (GOSI);
    • Signing up to the program from the company/business account;
    • Accepting the electronic acknowledgement to receive the support;
    • Sending the original delegation paper to HRDF. The delegation must be signed by the business owner and attested by Chamber of Commerce. (It should be sent to the address detailed in the form, or delivered to the nearest HRDF branch.)

Eligibility, duration of the program, and other regulations:

The program targets new employees, with a start date after 31 July 2017. The employee must be a Saudi national, between the ages of 18 years and 60 years. To receive the support, the maximum wage for an employee registered in the GOSI should not exceed 6 thousand Riyals.

Some employees are excluded from the program:

    • Regular students;
    • Those who have a commercial license or registration;
    • Seasonal workers and retirees;
    • Employees who benefit from another HRDF programs during the same period.

The program keeps track of the growth of each establishment – measuring the number of Saudi employees registered with GOSI during the program period. The establishment risks losing eligibility for the program if the number of Saudi employees falls compared to its initial level.

HRDF deposits the amount of support to which your business is entitled every month into the relevant account through the SADAD payment system.

The program is due to end on 30 September 2019. However, consideration will be given at that time to extending the program in order to continue to encourage Saudization in the labor market.