Abstract
Purpose. The purpose of this qualitative study was to (a) explore the current unemployment crisis in Saudi Arabia, (b) evaluate the efficacy of the human capital development model as it relates to the current unemployment problem, (c) evaluate the efficacy of the human capital development model within the existing Saudization policy, and (d) explore the possibilities of a collaborative approach to reduce unemployment in Saudi Arabia. Theoretical Framework. This research proposed a human capital theory approach to developing a system that invests in Saudi Arabian nationals. The research also proposed network governance theory to prompt stakeholders such as the Ministry of Labor, the Ministry of Education, and private organizations to work as a single entity in developing human capital within Saudi Arabia. Methodology. A qualitative method was used to analyze past literature regarding Saudization to provide insight into the current unemployment problem, and secondary data from Saudi government documents were used to evaluate the efficacy of individual qualifications and skill levels of those involved in efforts to curtail unemployment. In addition, the researcher conducted several interviews with stakeholders, decision makers, and managers to explore opportunities for and barriers to collaboration in establishing a program that develops Saudi human capital qualifications within the Saudi education system. Findings. This study's findings were based on four elements: the impact of legitimacy (sharing authority and power), the influence of the current human resources system, incentives for stakeholders, and sharing operational processes to achieve effective collaboration. The results supported developing human capital skills and creating opportunities for nationals to gain experience and practical skills through their educational journey. Recommendations. This researcher recommends expediting job creation mechanisms and promoting a collaborative model for stakeholders to establish a mandatory occupational regional (internship) program to develop human capital qualifications in order to diminish the unemployment rate.