This policy was invented by the government not the people as a whole and they are not responsible for it. Saudis consider it preserving their nation not racism. It is a very unfortunate side effect of the Ummah being split up into nation states. Sadly many rich Muslim countries have adopted similar policies. Nothing like this however can justify racism against Saudis or any other people. Racism is an evil jahiliyyah force. It is even worse when it is from one part of the Ummah to another part.