At the same time, we have to also remove the hurdles that stand in the way of effectively implementing Saudization in the private sector.

Some members of the Shoura Council are still urging state-owned companies such as Saudi Aramco and SABIC to employ more Saudis. But I do think that this is not a workable solution for the problem in the long run. Saudi Aramco, SABIC and other such companies are not in a position to accommodate the huge number of young Saudi jobseekers.

On the other hand, we can take advantage of the successful experiment carried out by these companies to attract well-qualified and skilled Saudi jobseekers. Saudi Aramco and SABIC offered attractive incentives and allowances for the employees, and perhaps that prompted every Saudi to try to secure a job there.

Hence, I want to shed light in this article on the ways private companies can attract qualified young Saudis by offering them various incentives and allowances, following in the footsteps of Saudi Aramco and SABIC.

The way to attract Saudis to work in the private sector is not only by removing the hurdles in order to secure them jobs, but also by creating an impression that the private sector is better than the public sector to work in.

The government must have a strategy to reach out to Saudi employees working in the private sector by extending to them required support and incentives. For example, unlike in the private sector, employees in the government sector get a fixed amount of allowances to cope with the rising costs of living. There should be parity between private and government employees in this respect.

Local newspapers often carry reports about the grievances of private sector employees. They do not get any allowances even when prices of essential goods as well as living costs rise, especially in the face of a housing crisis. These employees also virtually become hostages when their companies are struggling.

If we are honest in implementing Saudization in the private sector, then we have to make investments to realize our desired target as envisaged in our five-year development plans in this respect. The percentage of Saudization in the private sector dropped from 13 in 2008 to less than 10 in 2009, according to statistics released by the Ministry of Labor. Hence, I especially stress in this article the need for adopting measures to encourage young Saudis to take up jobs in the private sector as well as making available government support to consolidate their position in their chosen field.

It is worth noting that the General Organization for Social Insurance (GOSI) shoulders the responsibility for all employees working in the private sector. Hence, the Saudization drive must be relaunched by expanding GOSI incentives to all Saudi employees in this sector. This increase could take the form of a so-called Saudization allowance. The Ministry of Finance could set up a GOSI fund for this purpose. By making use of this fund, GOSI can increase incentives for Saudis coming forward to take up jobs in this vital sector. No doubt, incentives being extended by GOSI would be much better than that given by the General Pension Fund, whether it is in the short or long run.

In the short run, it is essential for the Ministry of Finance to shoulder some responsibility to ease the Saudization burden on employers. A Saudization Fund could be set up for this purpose.

This fund would be an alternative to the Human Resources Fund that has not been a success despite the huge volume of money pumped into its budget. It is a known factor that more businessmen took advantage of the Human Resources Fund than jobseekers in the private sector. Members of the Shoura Council have often expressed their dissatisfaction over the functioning of the fund, especially in supporting Saudization in the private sector. Moreover, this fund has become targeted for fraudulent purposes by some companies, as some newspapers have revealed.

I want to draw attention to some facts. More than 88 percent of establishments in the private sector are small enterprises. There are only less than 20 employees working at these firms. Most of these firms are not in a position to give incentives to their employees. Therefore, it is important to set up a fund to offer incentives and allowances for employees of these firms. What makes this strategy feasible is the fact that Saudis make up a small segment of the workforce in the private sector. Their number does not exceed 1.5 million, according to a GOSI report released nearly one and a half years ago. Therefore, extending them financial support such as housing support and other allowances would not be a big financial burden on the Ministry of Finance.

The fund can also give some other incentives to encourage Saudis to continue working in the private sector for a period of more than 20 years. The fund can introduce a scheme to extend credit facilities to those who have completed 20 years of service. The majority of Saudi employees working in the private sector look to switch over to the public sector as early as possible. Sometimes, they do not bother with the higher salary they are being paid in the private sector. Therefore, if they know that they can be beneficiaries of credit facilities after completion of 20 years of service, it can be an incentive for them to continue serving the private sector. After completion of 20 years, they can take advantage of the credit facilities to set up a business venture of their own and to manage the project not as a newcomer but as an expert in the field.

The Ministry of Finance can earmark money for the fund by raising revenue by increasing fees for employment visas, except for house workers, and iqamas (residence permits). This strategy would eventually lead to the realization of the Saudization target as well as reduce dependence on foreign workers.

In the long run, we have to reduce the early retirement period and fix it at 20 years. By doing this, jobseekers would realize that they could switch over to any other field after serving 20 years. This time they can also enjoy job security unless they faced disciplinary action such as being fired or they lost their job due to the collapse of their company.

Here, the problem is that when a Saudi employee working in the private sector faces such a precarious situation, he would not be able to turn to an agency that can provide him with a source of income, as is the case with most Western countries. The social security schemes in our country are restricted only to weaker sections in society such as the poor and needy and people with special needs.

Similarly, the average size of families in our society is also large compared to Western societies. Most of our families include extended family members. On the other hand, the size of families in the Western world is quite small.

Therefore the effects of a crisis in the workplace, such as an employee being dismissed or the company going under, would be much greater in our society than in Western countries. There is no government fund to support such cases.

Hence, if the suggested measures were taken to support the private sector employee, more citizens would come forward to take up challenging careers in this sector. For this, we have to also take some other measures, such as fixing a minimum wage and working hours and set up bodies to take care of their rights.

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