RIYADH, 23 August — Saudi Arabia yesterday decided to modify the recently introduced policy of employing only Saudis in the gold and jewelry market. Rather than, as had been previously decided, to push for Saudization in one go, the policy will now be implemented in stages.

Interior Minister and Chairman of the Manpower Council Prince Naif endorsed the decision after taking account of the reality of the market situation. It has become apparent that a lack of experienced Saudi hands has hampered the drive for a total and immediate Saudization.

According to a previous decision that came into effect July 22, only Saudis were allowed to work in gold and jewelry shops in the Kingdom. The move was aimed at providing some 20,000 jobs to Saudis in the first stage.

In accordance with the new edict, the Saudization of jobs in the market will take two years to complete. However, the edict still insists that not less than 30 percent of staff at gold and jewelry shops working at the moment should be Saudis.

“Efforts should be made to increase the percentage of Saudi employees to reach 50 percent by the beginning of next year, and 100 percent the following year,” Abdul Wahid Al-Humaid, secretary-general of the Manpower Council, told Arab News.

“Prince Naif approved the decision to Saudize jobs in phases considering the ground reality at gold and jewelry showrooms. Owners of the shops have said that they will not be able to Saudize all jobs in the present circumstances,” Humaid said.

The council commended jewelry shop owners, who had made early preparations to implement the Saudization drive in the sector, and Humaid hoped that the new decision will encourage others to train Saudis to take up all jobs in the sector before the end of the grace period.

Hundreds of gold and jewelry shops have been closed down in various parts of the Kingdom for failing to implement the initial Saudization regulation.

Although no exact figure of Saudis working in the sector is available, unofficial estimates say they currently account for only 10 percent of about 60,000 employees.

The Riyadh Chamber of Commerce and Industry (RCCI) has introduced a four-month diploma course to prepare Saudis for jobs in the field of gold and jewelry sales as well as hone their managerial skills in the business.

The launch of the diploma course and other training programs by RCCI came against the background of the closure of 150 gold showrooms in Riyadh following the implementation of the initial Saudization drive.

The closed showrooms were said to represent about 15 percent of the 1,000 gold and jewelry showrooms in the capital. Of these, 60 shops were located in the Salloum, Manfouha and Naseem areas.

Abdul Rahman Al-Jeraisy, chairman of the Riyadh chamber, said the new two-year grace period will allow such investors in the sector to train adequate number of Saudis required for sales, production and management.

“Training Saudis to take up various jobs is one of the chamber’s most important missions,” Al-Jeraisy said.

He urged Saudi businessmen to make advance preparation for total Saudization of jobs in other sectors.

There are 5,000 gold and jewelry shops in the Kingdom, the largest gold consumer in the Middle East, with annual sales estimated at 174 tons, or a per head monthly average of 15 grams.

The demand for gold in the Saudi market rose by nine percent during the second quarter of this year compared to the same period last year.

According to the latest statistics issued by the World Gold Council, the positive decisions taken by the government, including reductions in customs tariffs and the move allowing Umrah pilgrims to visit the Kingdom throughout the year, have contributed to a flourishing market.

According to a recent study, 60 percent of gold shoppers in the Kingdom are men and 40 percent women.

Saudis account for 70 percent of the consumers, with a market share of SR6.7 billion. Other Arab buyers are second, with 25 percent, and non-Arab foreigners are estimated at five percent.

“The market peaks in the vacation season,” says Omar Al-Kabdi, an official of the Al-Romaizan for Gold and Diamonds.