JEDDAH, 22 July — Measures aimed at replacing foreign workers in retail trade with Saudi nationals have been accelerated over the past few days. As a major step in this direction, all gold and jewelry shops are required to replace their foreign workers with citizens effective from today while vegetable and fruit shops manned by expatriates, mostly from South Asian countries, are rapidly closing down.
In several parts of Jeddah, shelves of vegetable and fruit shops remained empty. A majority of workers in these shops were from Bangladesh and other Asian countries. The move to replace foreign workers in retail shops follows a decision to enforce Saudization at the wholesale vegetable and fruit markets.
“We are closing the shop because we were told that only Saudis should work in this business. As you can see the place is empty and we are no longer selling anything,” said Abul Kalam, a Bangladeshi working at a shop on Prince Abdullah Street in the Safa district. He said he knew of many shops, which have either closed or are about to do so. “These could number up to 80 shops in this area and other parts of the city.”
Many small shops in the neighborhood have put up signs reading “liltaqbeel”, which means the shop is for sale.
“I plan leave the Kingdom for good as soon as a buyer is found for the shop. It is getting difficult in these kind of business,” said another Bangladeshi shopkeeper.
The Saudization drive in the vegetable markets was the first step toward nationalizing jobs in the entire retail trade, which is said to have been making a profit of 30 to 40 percent.
While directives have been issued to Saudize jobs in other sectors including cleaning and maintenance, real estate, telephone and postal services, the government has set a target of 5 percent annual increase in each business establishment. Interior Minister Prince Naif has announced that starting from July 22 only Saudi citizens will be allowed to work in shops that produce and sell gold. Letters to this effect have been sent to provincial governors, ministers of commerce, industry, labor and the governor of the General Organization for Technical Education and Vocational Training. Chambers of commerce in various Saudi cities have been busy training Saudi youths to take up jobs acting on recommendations of the Manpower Council.
Chamber figures speak of some 6,000 gold shops, 350 factories and hundreds of workshops employing more than 60,000 workers. The number of Saudis in the sector does not exceed 10 percent, most of them owners or administrators of the shops. It is expected that the move will provide employment to 20,000 Saudis in the initial stage.
The Kingdom is the fourth largest market in the world for gold with the annual demand estimated at 200 tons and SR8 billion in business dealings. It ranks 27th among world producers with an annual output at 11 tons expected to increase to 14 tons over three years.
According to the World Gold Council, gold demand in Saudi Arabia was 63.5 tons in the first quarter of this year, down 3 percent compared to the same period of 2000. But the Council noted that the performance was still relatively strong.
Demand was bolstered by a generally healthy economic climate triggered by higher oil prices and government measures to liberalize the economy. Purchases by pilgrims being an important source of gold demand in the Kingdom, a further boost in demand is likely with the number of pilgrims expected to increase under the new Umrah system, the council said in its first quarter report. (AWB)
