This paper presents a critique of a number of programs and laws introduced by the Saudi Ministry of Labor and Social Development as encouragement for local businesses to promote employment. The author attempts to understand whether business owners have agreed to participate in state-run programs and abide by laws that encourage nationalization of labor as a rational choice consistent with their interest, or as a temporary response that is likely to change once the level of government intervention tails off. Through an analysis of a selected sample of key laws and programs aimed at the private sector, the paper examines heir effect on labor nationalization and explores the motives of Saudi business owners abiding by these programs.