JEDDAH, 23 May 2004 — A number of Saudi small business owners have asked the Ministry of Labor to review its latest decision to prohibit work visas for businesses with fewer than 10 employees. The businessmen said the decision put their businesses at risk and threatened them with bankruptcy.
The businessmen told Al-Madinah Arabic newspaper that they had opened their business after failing to get jobs with the government or the private sector. They said the decision would be the straw that broke the camel’s back because many Saudis refuse to work in small businesses. This decision also puts an end to the dreams of many graduates who hope to open their own businesses.
Jaber Asiri said, “This decision is unfair to us because big businesses are allowed visas to bring in workers while we are not. There are many unemployed Saudis who have set up their own businesses after years of unemployment. A decision like this will destroy their dreams and hopes. If the decision is enforced, then it should be enforced on both large and small businesses. I was about to open a new cafeteria but the new decision has stopped my plans. I would not be able to bring in the fewer than ten workers needed to run my cafeteria. Why is the ministry taking decisions that make our lives difficult and our dreams impossible?”
Muhsin Al-Wadie said, “Many young Saudis are disappointed by the decision. I was about to go into business with two of my friends. When I went to the labor office to get a visa for a worker, I was told that I could only get a visa if the total number of workers is more than 10. The decision should have been studied carefully before it was approved. Did the ministry study the negative impact it would have on small businesses and their owners? I do not think so. The decision should be reviewed if the are serious about Saudization.”
Hussein Al-Qahtani said, “I have been working on setting up a new business for more than a year. When the plans were complete, I borrowed SR100,000 from the bank. I needed six workers to get things started but my request for visas was denied since the minimum number of workers required for a visa is 10. This decision is unfair on young Saudis who want to start their own businesses.”
Ahmad Sharaf had a different opinion. “The decision is a good step toward solving the unemployment problem. It is a decision that benefits young Saudis so why are most Saudis against it? The decision was not made in an instant. There is a strategic goal behind the decision which will put an end to many problems that affect Saudization — such as the selling of visas and the problem of Saudis setting up businesses by using non-Saudis.”
Naser Al-Qahtani, an establishment owner, said, “What I cannot understand is the employment office claims that they are encouraging Saudis to go into business. If that is true, then why do they make a new visa law which bans visas for businesses employing fewer than 10 workers? The decision keeps more Saudis unemployed since it will put an end to their dreams of owning a business. The Labor Ministry should review its decision.”
