RIYADH, 23 July — Joint venture projects being set up under the new investment law will create lucrative opportunities for Saudi job-seekers, especially computer scientists, programmers and IT specialists, according to a Saudi firm that specializes in human resources development.
Gulf Management Services Ltd., in its inaugural issue of “GMS Newsletter”, points out that by helping to create new jobs, the investment law will put long-term upward pressure on salaries, especially for Saudi managers and technical personnel “who are already in short supply in the Kingdom.”
It said the forms of compensation would also change. “Many of the new projects will be financed by European and US investors, where a big part of employees’ pay package comes from company-subsidized saving schemes, share ownership plans and other kinds of “deferred compensation.”
“GMS believes that the new Saudi branches of overseas companies will introduce these schemes to attract and retain key staff members, especially Saudis.”
However, according to Fehied Al-Shareef, deputy governor for investor services at the Saudi Arabian General Investment Authority, the new projects would provide jobs to Saudi nationals “in the future, not right away”.
“By expanding the industrial and commercial base of the Kingdom, the new law will increase job opportunities for Saudis. However, it usually takes four or five years from the time a new project is planned until it gets into operation,” Al-Shareef said in the inaugural issue of the GMS Newsletter.
Al-Shareef said the impact of the new law would be felt in the long run on the administration of human resources development. “Thus, like existing companies here, new projects that come in will need to have Saudi nationals in certain key jobs, and each year the number of Saudi employees should be increased by at least five percent.”
The deputy governor said licenses could be granted to new investment projects that are 100 percent foreign-owned. They no longer need a Saudi sponsor, since “the project itself can act as the sponsor for its employees, and visa procedures for bringing in staff are eased.”
Al-Shareef said foreign investment projects could own property to build factories or related facilities. All services open to local companies are also available to foreign projects, including loan facilities, low cost sites in industrial cities, duty-free imports of raw materials, etc.”
On Saudization, the newsletter cited the Riyadh-based Advanced Electronics Co. which has achieved a 74 percent Saudization and yet has built up a successful track record.
It quoted Dr. Tarik A. Al-Sulaimani as saying: “The word Saudization is very important. We don’t consider Saudization merely as replacement of expatriate employees; to us Saudization means developing Saudis at all levels to handle our growing business volume.”
“We guarantee our expatriate workers their jobs as long as they do good work and share their knowledge with their Saudi co-workers. So they are not afraid of losing their jobs if they help the Saudi at the next work station,” Al-Sulaimani addded.
Authority announced the viability of several investment projects in the southern city of Najran.
It said studies on 12 foodstuff, chemicals, construction material, engineering and handicraft projects estimated to cost nearly $43.5 million would have an annual turnover of $37.70 million with $9.6 million net profits. Najran Governor Prince Mishal ibn Saud said a new industrial zone would be set up in the city at an estimated cost of $11.8 million.
