Challenges in Effective Implementation of Saudization Policy in the Restaurant Sector

Abu Elnasr E. Sobaih ()
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Abu Elnasr E. Sobaih: Management Department, College of Business Administration, King Faisal University, Al-Ahsaa 31982, Saudi Arabia

Sustainability, 2023, vol. 15, issue 9, 1-17

Abstract: The Kingdom of Saudi Arabia (KSA) is one of the countries that heavily rely on expatriates, especially in the private sector, which includes restaurants. However, to overcome the increasing rate of unemployment, the government has adopted new quota up to 50% Saudi Arabian people in restaurants. Notwithstanding, Saudization has been more successful in public sectors than it has been in the private sector. The current study undertook a sequential mixed method approach, starting with a questionnaire for newly joined local workers in restaurants and supplemented with in-depth interviews with managers. The main purpose of the questionnaire was to understand how new local workers perceive their new jobs/careers in restaurants, while the managers’ interviews explored the challenges encountered in the effective implementation of the new quota in restaurants. The results of questionnaire showed that local workers had negative perceptions about their new jobs/careers. They perceived it as a “bad” and “disrespected” job and reported overall dissatisfaction with their new job. Newly joined local workers consider restaurant positions as a “transit job”, with no intention to continue it as a career or even recommend it to their friends and family members. Managers, on the other hand, identified six main challenges that are associated with this, albeit they are linked to the absence of a clear strategic framework and executive plan by the government for the effective implementation of the new quota. The plan has to clearly focus on the employability and mitigate the wrong assumption about working in restaurants due to cultural and social impacts. The plan should consider the needs of both employers and employees to promote sustainable career among local workers, which ultimately influences the sustainable development of restaurants in the KSA.

Keywords: Saudization; expatriates; localization policy; unemployment; restaurants; sustainable career (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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