saudization
MANAGEMENT DISSERTATION PROPOSAL PROFORMA
1. Aims of the Dissertation:
In the last few decades, many countries in the Middle East have experienced strong economic growth. Many companies operating in this region have reported increased profitability as a result of favorable economic conditions (De Boer et al, 2008, p.20). However, introduction of saudization policy has affected many foreign companies negatively. Daly (2005, p.26) contends that, the Saudi Arabia government enacted the policy of saudization two years ago as a way of combating increased rate of unemployment. Initially, only 23% of national labor force was made up of Saudi nationals, and the other proportion was composed of foreigners who were approximately 7 million. Many foreign workers were attracted by increased revenue from oil companies due to increased global oil prices. Influx of multinational corporations in the region requires companies to adopt a diverse work environment in order to incorporate workers from diverse backgrounds. The government of Saudi Arabia came up with saudization policy about two years ago as way of developing national economy through creation for employment to many locals who were becoming a burden to the government. Through this policy, the Saudi Arabia government required all the foreign corporations operating in that country to ensure that at least 10% of their workforce comprised local people. The policy required these foreign corporations to increase the proportion of local population by either hiring more local people or replacing foreign workers with Saudi workers. Unfortunately, many domestic companies in Saudi Arabia are not ready to adopt a policy of diverse work environment and continue to promote saudization policy which have affected business environment in the country in numerous ways, for example many foreign workers are forced to leave in order to pave way for unemployed local population (Salah, & Armando, 2003, p.70). Many corporations fear that
1. Aims of the Dissertation:
In the last few decades, many countries in the Middle East have experienced strong economic growth. Many companies operating in this region have reported increased profitability as a result of favorable economic conditions (De Boer et al, 2008, p.20). However, introduction of saudization policy has affected many foreign companies negatively. Daly (2005, p.26) contends that, the Saudi Arabia government enacted the policy of saudization two years ago as a way of combating increased rate of unemployment. Initially, only 23% of national labor force was made up of Saudi nationals, and the other proportion was composed of foreigners who were approximately 7 million. Many foreign workers were attracted by increased revenue from oil companies due to increased global oil prices. Influx of multinational corporations in the region requires companies to adopt a diverse work environment in order to incorporate workers from diverse backgrounds. The government of Saudi Arabia came up with saudization policy about two years ago as way of developing national economy through creation for employment to many locals who were becoming a burden to the government. Through this policy, the Saudi Arabia government required all the foreign corporations operating in that country to ensure that at least 10% of their workforce comprised local people. The policy required these foreign corporations to increase the proportion of local population by either hiring more local people or replacing foreign workers with Saudi workers. Unfortunately, many domestic companies in Saudi Arabia are not ready to adopt a policy of diverse work environment and continue to promote saudization policy which have affected business environment in the country in numerous ways, for example many foreign workers are forced to leave in order to pave way for unemployed local population (Salah, & Armando, 2003, p.70). Many corporations fear that
References: Al-Dosary, S. & Rahman, S., 2005. Saudization (Localization) – A critical review. Human Resource Development International, 8(4), pp.495-502. DOI: 10.1080/13678860500289534 Al-Harbi, K Ambrose, M. & Anstey, R., 2010. Questionnaire Development: Demystifying the Process. International Management Review, [online] Available at: [accessed on 7 November 2011] Daly, F., 2005 De Boer, K., Farrell, D. & Lund, S., 2008. Investing the Gulf 's oil profit windfall. McKinsey Quarterly, [online] Available at: [accessed on 7 November 2011] Gavin,J., 2009 Mellahi, K., 2007. The effect of regulations on HRM: private sector firms in Saudi Arabia. International Journal of Human Resource Management, 18(1), pp.85-99. DOI: 10.1080/09585190601068359 Molina, J Muysken, J. & Nour, S., 2006. Deficiencies in education and poor prospects for economic growth in the Gulf countries: The case of the UAE. Journal of Development Studies, 42(6), pp.957-980. DOI: 10.1080/00220380600774756. Said, M. & Al-Buraey, M., 2009. A Framework of the Implementation Process: The Case of Saudization. International Management Review, [online] Available at: [accessed on 7 November 2011] Salah, T