The Strategic Dimensions of Localizing the Transport Sector

The decision to localize such a vital sector does not come from nowhere; it is based on a long-term vision aimed at achieving strategic gains on multiple levels, going beyond merely reducing unemployment figures to touching the very core of comprehensive national development.

1. The deep economic dimension: The economic impact is the most visible driver of localization efforts. When citizens occupy sector jobs, it leads to a chain of positive outcomes. First, the creation of tens of thousands of quality and sustainable jobs that raise household incomes. Second, reducing the huge volume of financial remittances abroad, meaning capital remains within the local economic cycle and is reinvested — boosting GDP. Third, localization stimulates the growth of entire supporting sectors, as the increase in Saudi drivers and logistics experts creates growing demand for maintenance workshops, insurance companies, spare parts suppliers, and local technology developers, creating a multiplier effect in the economy.

2. The social and developmental dimension: On the social level, localization helps build a new generation of national talent specialized in one of the most vital sectors of the future. It breaks stereotypes about certain professions, strengthens the value of vocational and technical work, and opens promising career paths for Saudi youth. Securing a stable job in the transport sector not only provides steady income but also gives young people a sense of meaningful contribution to nation-building and provides them and their families with the social stability that forms the foundation of any thriving society.

3. The security and strategic dimension: The transport sector is an economic and security line of defense. Overreliance on foreign labor to manage this vital lifeline could expose it to disruptions during global crises or political tensions. Having national talent leading and operating this sector ensures the continuous flow of essential goods and critical supplies under all circumstances, strengthening the concept of "economic security" and granting the state greater strategic flexibility in facing unexpected challenges.

Implementation Mechanisms and Pillars of Success

Achieving an ambitious goal such as localizing the transport sector requires a comprehensive action plan that combines legislation, training, incentives, and technology — the pillars on which the Kingdom has built its strategy.

• Government legislation and regulations: The Ministry of Human Resources and Social Development, in cooperation with the Transport General Authority (TGA), is leading intensive efforts to establish the necessary regulatory frameworks. This includes setting mandatory localization percentages across different sector activities and issuing decisions that restrict certain jobs to Saudis only. These decisions are not merely about imposing a new reality but about directing the labor market compass and creating genuine demand for national talent.

• Specialized training and qualification: Acknowledging that localization cannot succeed through decisions alone, the Kingdom has given great attention to training. This is achieved through the Saudi Logistics Academy, technical and vocational training programs, and strategic public-private partnerships to create training programs tailored to the labor market’s needs in the transport sector — from heavy truck driving to managing complex supply chains.

• Financial support and incentives: The Human Resources Development Fund (HRDF) plays a key role in encouraging private sector institutions to adopt localization. The fund offers programs to cover part of Saudi employees’ salaries, finance their training costs, and provide incentives for companies that achieve high localization rates. This eases the financial burden on companies during the transition period and makes hiring Saudis a more attractive option.

• The role of technology in making the sector attractive: Technology has transformed the face of traditional transport. Driving is no longer just about steering a vehicle — it now requires skills in handling smart systems, navigation apps, and task management tools. This shift makes jobs more attractive to tech-savvy Saudi youth. In this context, advanced platforms such as rooya.ai, a Saudi platform that relies on artificial intelligence and specializes in improving fleet management, driver behavior, and reducing operating costs through instant, data-driven smart solutions, contribute to enhancing driver efficiency and safety. This makes Saudi drivers more productive and valuable in the labor market.

The Kingdom’s Journey: Accelerated Steps Toward Localizing the Transport Sector

The Kingdom is translating its vision into tangible reality through a series of ambitious decisions and initiatives. Several activities have already been localized at varying rates, including delivery app services, freight brokerage, car rentals, school transport, and many more. Each decision aims to open thousands of direct and indirect job opportunities for Saudis.

All these efforts fall under the larger umbrella of the National Transport and Logistics Strategy, one of the most important programs for achieving Vision 2030. This strategy seeks to solidify the Kingdom’s position as a global logistics hub, grow the transport sector to increase its contribution to GDP, and place localization and local content development at its core. Official figures indicate that localization decisions in the transport and logistics sector aim to provide tens of thousands of jobs — and the results are already visible with rising numbers of citizens working in this vital sector.

Challenges on the Road and Innovative Solutions

A journey of this magnitude is not without challenges, but awareness of them is the first step toward overcoming them:

• Work culture challenge: Some professions in the transport sector still carry a social stigma. Government bodies and media campaigns are working to change this perception, highlight success stories, and emphasize that these professions are respectable, rewarding, and offer promising career paths.

• Skills challenge: Sometimes there is a gap between the skills required by the sector and those available among job seekers. The solution lies in intensifying targeted training and qualification programs and better aligning education outputs with actual market needs.

• Quality assurance challenge: Some fear that localization could affect service quality in its early stages. This can be addressed through strict training programs, applying clear performance standards, and leveraging technology to monitor quality and efficiency and ensure the best possible outcomes.