JEDDAH, 7 December 2007 — Saudi residents and citizens alike expressed signs of relief on reports that a number of private companies in Saudi Arabia raised the salaries of their employees amid rising inflation.

Earlier some companies decided to hike the basic salary by 40 percent to meet the uncontrolled price increases.

Random checks made by Arab News yesterday showed that many found consolation in the recent move by some companies, as it would create a ripple effect for other companies to follow suit.

Many Saudis believe now that the salary increase is “a must now” to address the increases in prices of commodities, adding that the public sector should toe the line adopted by the private enterprises.

Sultan Abdul Wahab, a teacher in high school, said that it is normal that if prices increase, the salaries increase with it. He noted that UAE increased the salaries of government employees by 70 percent to meet the high standard of living.

“It is very important that we do not repeat the mistake of 2005 when we received the 15 percent in salary increase in which businessmen took advantage of by correspondingly increasing their prices. This time the ministry of commerce should do something and monitor the market to make sure that they do not take advantage of such situation,” he added.

Another citizen Hashem Ali, working in a private company in the service industry, said that he is very much affected by the salary increase. “In 2005, the company I worked for decided to ignore the calls to increase the salaries by 15 percent and as a result I am bearing the brunt of price hikes in goods.”

He appeared cynical this time, saying I am sure that the company I work for will ignore the call to increase the salaries of workers.” I wish there is a government law or regulation that forces these companies to increase the salary of their workers because they are making millions and we are getting nothing.”

However, others can’t help but be irritated.

“The situation is frustrating,” said Fahd Al-Zahrani, a Saudi government worker. “UAE increased their salaries by 70 percent and Kuwait is studying to increase the salaries of their workers by 30 percent. There are strong rumors that Qatar might increase their salaries by 200 percent. I think we should speed up the phase to increase the salaries of both government and private sectors. This is the best solution in my opinion because the high cost of living is killing many Saudi families,” he lamented.

Published reports on Wednesday named Saudi companies, including the state-owned oil Saudi Aramco, raised wages by 15-40 percent to offset the impact of rising inflation on employees.

It said Aramco decided to raise wages of lower-levels employees by 10 percent and agreed lesser increases for mid-level and top management.

Mobile telephone operator Etihad Etisalat (Mobily) has decided to raise wages by 20-40 percent for its 2,800 employees, a company official was quoted as saying.

The report also mentioned that all employees of Saudi Investment Bank will be given a 15 percent salary raise from January next year.

A report in September said Saudi Basic Industries Corp. would raise wages by 6 percent.