RIYADH, 18 March 2003 — The Shoura Council has approved a draft bill limiting jobs in the wholesale and retail trade to Saudi citizens.
Dr. Hamoud Al-Badr, the council’s secretary-general, said the bill, designed to outlaw foreigners operating small commercial shops under Saudi names, would be implemented gradually over a period of five years.
Under existing regulations, foreigners are barred from carrying out any business activity in the Kingdom except those licensed by the Saudi Arabian General Investment Authority (SAGIA), which normally seeks large-scale projects.
Hundreds of thousands of foreigners are running small-scale operations in Saudi Arabia registered under names of citizens for a certain fee.
The new bill stipulates a jail term for two years and a fine of up to SR1 million ($270,000) for violators. The government must endorse the bill to become effective. It will grant a period of six months for violators to rectify their status.
The Kingdom has recently taken a series of measures to create more jobs for nationals amid unofficial reports which put unemployment at more than 20 percent.
In February, the Manpower Council decreed that foreigners must not exceed 20 percent of the Saudi population after 10 years, which could mean expelling some three million expatriates living in the Kingdom.
