Activation Policies for the Poor in OIC Member States
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nationals.86 The lack of Saudi representation in the private sector can be explained partially by
attitudes among Saudi nationals. Many private sector careers, construction being one example,
are not deemed to be socially acceptable by Saudis. As a result, many of the vacancies that exist
in such sectors must often be filled by expatriate workers. A key challenge therefore is to aim to
break down perceptions around what jobs are deemed suitable for the average Saudi worker.
As such, workforce quotas may not address the issue of Saudi under-representation alone. The
government will also have to work to make less traditional private sector jobs more attractive
to Saudi citizens by transforming culturally established attitudes towards work.
3.1.2 Design and performance of the current activation policies and programmes
The Ministry of Labor (MoL) is responsible for employment policy overall and encouraging
economic growth through labour market development. The ministry overseas two key agencies
involved in activation programmes. The Human Resources Development Fund (HRDF) is an
executive agency of the MoL and is responsible for the development of employment programmes,
commissioning of services and assessment of contractor performance. The Technical and Vocational
Training Corporation (TVTC) is responsible for further education, vocational training and skills
development. It runs a series of training courses and has now contracted organisations to run new
educational institutions known as Colleges of Excellence.
There is a wide range of public employment support available in Saudi Arabia, but these services do
not tend to be directly targeted at the poor. There are common themes that run through a number of
the operating models applied in Saudi Arabia:
 Payment by results
 Enabling on line
 Encouraging innovation
The government recently introduced Hafiz, a form of unemployment assistance whereby benefits of
SR2,000 (US$522) per month are offered to unemployed Saudi men and women that are actively
seeking employment with the objective of the programme is to increase labour market participation.
The programme also provides training and employment services. Benefits can be withdrawn for
failure to engage with the programme. HRDF has also offered incentives to Saudi nationals to stay in
their jobs offering up to SR24,000 (US$6,275) in benefits. This highlights the need to move these
people into employment and to keep them there. The programmes are administered by HRDF and all
nationals are eligible as long as they do not have a fixed income higher than the benefits received.
Benefits can be withdrawn for failure to engage with the programme.
The benefit is effective in supporting a number of individuals but to date the receipt of benefit is not
conditional on participation in employment support. As a result the outcome and impact of the
benefit is currently unclear, particularly its focus on alleviating poverty. In 2013, there were around
1.6 million people on the Hafiz programme who then had access to a range of job search support and
training programmes.
Job search support
The PES is operated by HRDF. HRDF is a legally and financially separate entity that supports human
capital development. HRDF achieves this by upskilling the national workforce and providing
employment support and unemployment assistance by:
 Increasing labour market participation (Hafiz)
 Providing support programmes for students
86 Labor and the Nitaqat Program; Effect on the Saudi Arabian Economy. Available at
[Accessed 8th September 2014].