Workforce Localization in Saudi Arabia
Virtual special issue: Workforce Localization in Saudi Arabia
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“A nation’s workforce is its greatest asset. Policies that shape employment and talent development not only determine economic progress but also define the inclusivity and sustainability of its growth.” Workforce Localization in Saudi Arabia
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This presentation summarizes the work on workforce localization in Saudi Arabia, with Ali Faqihi and Cathy Ying Xu and the five studies below:
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Workforce Localization Theorization, Contextualization, and Paradoxes: A Systematic Literature Review (Study 1)
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Beyond MNE-Centric Paradigms: Reconceptualizing the Mechanisms of Workforce Localization (Study 2)
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Beyond Voice and Silence: A Typology of Skilled Migrants’ Workplace Communication Strategies Under Saudi Localization Policies (Study 3)
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Dual Pathways of Responses: Understanding How Workforce Localization Triggers Global Workforce Engagement and Withdrawal (Study 4)
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How workforce localization shapes expatriate agency: Narratives of voice, silence, and knowledge practices in Saudi Arabia (Study 5)
Navigating the Paradox of Saudization
Ali Faqihi’s PhD thesis, Workforce Localization and the Global Workforce, takes us inside the high-stakes environment of Saudi Arabia’s national transformation. Rather than viewing Saudization simply as a government headcount policy, Faqihi treats it as a profound "institutional shock" that fundamentally rewrites the rules of the workplace. Through five interconnected studies, the research moves beyond policy documents to explore the lived reality of the global workforce—the engineers, managers, and technical experts who find themselves in the paradoxical position of being essential to the country's growth while being explicitly signaled that their time is running out.
The Silent Struggle: Voice vs. Silence
The heart of this research lies in a critical tension: the choice between speaking up and staying silent. For decades, management theory has assumed that when employees are unhappy, they choose between "voice" (trying to improve things) or "exit" (leaving). But in the context of Saudization, the exit is often already predetermined by the state. This creates a pressure cooker environment where the decision to share knowledge or withhold it becomes a strategic survival mechanism.
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This issue matters immensely because the entire success of Saudization depends on a transfer of capability. The policy assumes that expatriates will willingly mentor their Saudi replacements. However, Faqihi’s work reveals that when skilled migrants feel threatened by job insecurity or discrimination, they don't just leave; they cognitively withdraw. They adopt "defensive silence" and engage in "knowledge hiding"—playing dumb or evasively withholding critical information to maintain their relevance. This hidden resistance can quietly derail the national agenda, creating "ghost employment" where locals are hired but never truly trained, satisfying quotas without building genuine capacity.
​​Workplace Localization Set of Work
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Wechtler, H, Faqihi, A., & Xu, X. (2026). Workforce Localization Theorization, Contextualization, and Paradoxes: A Systematic Literature Review. More here.​
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​Faqihi, A., Wechtler, H, & Xu, X. (2026). Beyond MNE-Centric Paradigms: Reconceptualizing the Mechanisms of Workforce Localization. More here.
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Faqihi, A., Wechtler, H, & Xu, X. (2026). Beyond Voice and Silence: A Typology of Skilled Migrants’ Workplace Communication Strategies Under Saudi Localization Policies. More here.
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Faqihi, A., Wechtler, H, & Xu, X. (2026). Dual Pathways of Responses: Understanding How Workforce Localization Triggers Global Workforce Engagement and Withdrawal. More here.
Wechtler, H, Faqihi, A., & Xu, X. (2026). How workforce localization shapes expatriate agency: Narratives of voice, silence, and knowledge practices in Saudi Arabia. More here.
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