RIYADH, 10 November 2002 — The Al-Faisaliah Group has signed an agreement with the Human Resources Development Fund providing for the training and absorption of more than 500 young Saudis in the group’s workforce.
Prince Mohammed Al-Faisal, who concluded the deal with HRDF as the president of the group, told a press conference yesterday that it would boost Saudization of their workforce by nine percent. The group, which comprises 14 companies, has over 4,500 employees.
Under the agreement, Saudi trainees will be paid SR 2,000 per month during their two-year probationary period, with 50 percent of the money coming from the fund. They will then join the Al-Faisaliah Group, which will be responsible for their salaries and other benefits at the end of the training period.
Describing the move as unprecedented, Prince Mohammed said it is the first time that a major conglomerate has joined forces with the fund by marrying its technical resources to the financial muscle that the fund would provide. In case where an employee’s salary does not exceed SR1500 and the duration of the training program is not more than two years, HRDFund bears 75 percent of the salary, while the recruiting organization bears the cost of training. It also supports financing field programs, projects and studies aimed at replacing foreign manpower with Saudis.
He observed that while the Faisaliah Group was demonstrating its commitment to Saudization, he expected a matching response from the young Saudis in their willingness to work for their mutual benefit. Such a shared commitment could provide a sustainable basis for the promotion of Saudization in the Kingdom, Prince Mohammed said, adding: “It’s a strong signal from a group ranked 17th among the top 100 companies in the Kingdom.”
In response to a question, the prince said the trainees would be screened first to determine their aptitude and interest. They would then be assigned to the various subsidiaries of the group for on-the-job training program based on the requirements of each of the group’s business units. Of the trainees, 204 would be allotted to Al Safi Danone joint venture firm, 89 to Sony and 37 to Awalnet. The rest would be distributed among the other members of the group.
Prince Mohammed said that while the group has a full-fledged training department, some of their trainees had also been sent abroad for upgrading their skills. He mentioned Al Safi-Danone which had despatched its trainees to Canada, while others were deputed to Poland.
HRDF was approved by the Council of Ministers in July 2000 to boost privatization in the country. The fund derives its resources from the additional fee of SR 150 charged by the government for renewal of iqamas or residence permits for expatriate workers.
Unemployment remains high among Saudis, with 360,000 listed as jobless, according to the Manpower Council. The goal is to create an additional 817,300 jobs for Saudis over the next five years through Saudization and creation of new jobs.
