This document discusses opportunities for Saudi nationals in the construction sector in Saudi Arabia. It summarizes a study conducted by HRDF to understand challenges to employing Saudi nationals in construction and identify initiatives to address these challenges. The study found issues include a lack of strategic direction for the sector, gaps between education and required skills, poor perceptions of working in construction, and difficulties recruiting and retaining national talent. The study developed business cases for three proposed initiatives: a staff leasing company, an awareness campaign called "Go-Construction", and a construction entrepreneurship program. HRDF is seeking input from private sector construction companies through an upcoming survey to better understand future labor needs and forecasts in the sector.

1. HRDF.ORG.SA
Saudi Talent in Mega Projects
Construction Sectoral Analysis:
Opportunities for nationals in construction
Abdulkarim Alnujaidi
Executive Deputy Director General
9th December 2015

2. Introduction and Objectives
On 30 November 2014,
H.E. the Minister of
Labor approved a study
to be conducted for the
Construction Sector
This recognizes the
perceived high potential
of the sector to provide
sustainable employment
to Saudi Nationals
The study field
work commenced
in March 2015
Main
objectives
for this study
■ Reduce high rate of unemployment among Saudi nationals
■ Prepare the national workforce to work in suitable jobs in the
construction sector
■ Provide efficient, agile and integrated platform to manage Saudi
labor market services
■ Increase the participation of the Saudi nationals in the sector
■ Establish a baseline for the future resource requirements suitable
for Saudi nationals across the Kingdom in terms of construction

3. �����‫ا�����ا‬ ����‫ا‬Stakeholders Engagement is vital during the study across
the private sector, educators, students and job seekers
16 Gov & Sem-Gov
Entities Interviewed
(Including MoL+ Group)
400+ High
School
Students
Surveyed
Issued
Unemployed
Surveyed to
600K+
7 Education
Providers
Interviewed
500+ University & Technical
Colleges Students Surveyed
22 Private Sector Employers
Interviewed (including NCC)
As-is
Assessment
Stakeholders Categories
Data Collection Methods
Interviews
GLPRSurveys
Official
Data
Request
Other Gov
& Semi-Gov
Entities
Ministry
of Labor
Private
Sector
Employers
Edcation &
Training
Providers

4. The feedback received from stakeholders has been summarized
into 4 key challenges related to Human Capital enhancement
Weaknesses in
Construction Sector
Strategic Direction
and Governance
Construction
Education, Training
and Skills Mismatch
with Market
Requirement
Poor Awareness &
Attractiveness
Recruitment &
Retention
Difficulties
■ Lack of long term national strategy + lack of a single overarching trade body for the sector.
■ Lack of sufficiently detailed, up-to-date and consistent data to support policy making.
■ Government polices and regulations (e.g. Nitaqat) have shifted private sector priorities to ensure profitability.
■ Challenging incentives mechanisms within public procurement law for nationalization that drive cost.
■ Gaps between educational provision and qualifications and market demand; low number of TVET degree
holders among nationals within the sector.
■ Public Higher Education and TVET Outcomes not match the requirement of the jobs in the sector.
■ Difficulties of employers and employees in determining skills and educational requirements for jobs in
the sector.
■ The sector is perceived to be unattractive by nationals for a range of reasons (e.g. salary, working hours,
culture).
■ A relative preference exists for Public Sector Jobs, compromising private sector hiring and increasing attrition.
■ A general lack of awareness of construction sector jobs and career opportunities exists among nationals.
■ Nationals demonstrate a preference for back-office support (e.g. HR, IT) jobs over core construction trades.
■ Ineffective job matching techniques (low utilization of social media and on-line portals).
■ Challenges in recruiting nationals despite the match in salary expectations.
■ Nationals retention is a major issue within the sector, particularly in terms of high attrition and leakage to
the public sector.

5. Following stakeholder input, 7 initiatives to improve human
capital in the sector have been shortlisted for further analysis
Category
1
Category
2
Category
3
Category
4
Underlying everything is the
need for a clear strategy for
the sector for both demand
and supply
Facilitating labor market
movement and retention of
highly skilled workers
These programs drive
attractiveness into the sector
An independent program that
affects the underpinning
regulations to support overall
jobs growth in the sector
1. Supporting the Construction Authority and
the National Labor Strategy for Construction
7. Nationalization Incentives in the Public
Procurement Law
2. Construction Labor of the Future
3. Staff Leasing Company
5. Go-Construction
Campaign
6. Construction
Entrepreneurship
Program
4. Labor Mobility Support Program

6. 3 of these initiatives are being developed into detailed business
cases to confirm suitability for implementation within the sector
3- Staff Leasing
Company (SLC)
5- Go-Construction
Campaign
6- Construction
Entrepreneurship
Program
The cyclical nature of construction business
creates a demand for short-term, highly skilled
jobs, and introduces a perceived lack of job
security:
■ Employers cannot support employees during
periods of low demand
■ SMEs are unable to invest in the learning and
development in highly skilled jobs
There is a need to establish a construction
leasing company that assumes full
responsibility to:
■ Acquire employees (all levels and grades)
■ Develop and train the employees
■ Staff and re-allocate them across projects
Supporting entrepreneurs in the Construction
sector will help the construction industry by
bringing new ideas to the market, raising the
level of competition and creating more jobs
for nationals
Incubation of entrepreneurs within larger
construction companies to encourage
nationals to innovate in the sector and give
employers access to young talent and support
the growth of their own business
An awareness campaign targeting people from
different ages (school level, and university and
above level) to inform them and their
influencers about career opportunities and to
convey an overall enhanced image of the
sector
■ The Construction sector suffers from a poor
image among nationals and is affecting
companies’ abilities to attract talent to the
industry
■ The negative perceptions are developed at a
young age
■ No coordinated initiatives exist to raise
awareness
■ Nationals are unaware of career
opportunities in Construction
Context Initiative overview

7. ■ As part of this study, we will shortly be launching a Labor Market Analysis (Online Construction Employment Survey) in
collaboration with the National Contractors Committee. Your support and engagement to provide forecast information
is a critical input into this study
Your support is needed to obtain accurate labor forecasts to enable
matching of private sector demand with supply of nationals
■ To collect information about construction companies in terms of
size, business activities, and industry trends
■ Understand the current and forecasted profile of the Saudi
workforce and its strengths
■ Understand employers’ perception regarding the growth of jobs in
the company and which jobs are attractive for nationals
Objectives
■ Job Projection and Expected Growth
■ Skills Requirements
■ Contracting / Construction Trends
■ Attraction and Retention
■ Entrepreneurship
Subjects covered
■ Online survey to be send to NCC members, Conference attendees
and a large sample of SMEs
■ Face to face interview with major construction employers
Subjects covered

8. Sectoral Councils
■ The Sectoral Council
consists of MoL plus and
sector related ministries,
and the selected group
of 5-10 CEOs for large
companies in the sector.
Structure
■ Joint ownership for all
participants of sectoral
policies.
■ The effective
implementation of
sectoral policies through
coordinated efforts.
Expected Outcomes
■ The development and
participation of economic
analysis related to policies.
■ Design strategies, procedures
and new more effective sectoral
policies.
■ Execute and implement designed
sectoral concepts.
■ Monitor and evaluate the impact
of the implemented concepts.
■ Estimate the internal and
external needs for manpower
according to the sector needs.
■ Design, Manage and implement
the training.
Roles and Responsibilities

9. 1
2
3
Sectoral Council Benefits
MoL Plus
Enhance the ability to
understand sectors and design
dedicated policies to increase
the effectiveness of sectors
■ Represent a reliable source of sectoral information for government
agencies.
■ Design, evaluation and provide training and educational courses
according to the needs of career paths and the professions.
■ Managing expatriate visas.
■ Developing a coherent strategy for workforce plan.
Private Sector
Enhance the alignment with the
private sector making the
implementation of policies and
regulation easier and faster
■ Granting sector unified voice in the design and implementation of
policies.
■ Provide resources based on the sector needs and work together to
achieve the specific target
■ Develop and execute a long-term vision for the sector.
Economic and Society
Enhance the productivity of the
sector through the active
participation of the workforce
which stimulates economic
development in general
■ Identify common needs of the sector and the community and express a
unified voice with the largest representation.
■ Increase the sector efficiency and activating government censorship.
■ Build up coordination and teamwork to achieve goals.

10. Summary
■ A huge opportunity exists for national talent within the Construction sector.
■ HRDF is committed to working with the Private Sector to support the
employment of Saudi Nationals within the sector.
■ Your support is required to better understand the future forecast of labor
needs within the sector and your active participation in the upcoming
Online Construction Employment Survey.

11. Thank You
www.hrdf.org.sa