JEDDAH, 23 April 2003 — Following Interior Minister Prince Naif’s call earlier this week to fill all job sectors with Saudis, many leading businesses said they were already selecting and training Saudis, and chambers of commerce and industry are busy evolving strategic programs to train Saudis for employment at all levels.
Hani Abdul Aziz Saab, who heads the Jeddah Chamber of Commerce and Industry’s Committee for Retailers, said a conference on May 5 would draw up a schedule for meeting Saudization requirements.
“Lack of qualified and trained Saudis to work as cashiers and salesmen in the retail sector will be overcome as quickly as possible through strategic training programs. We will select Saudis under 40, even students at elementary and high school levels, for such programs,” said Saab.
In the absence of trained Saudis, retailers are faced with the option of either closing down or working without the help of sales assistants. The retail gold and jewelry trade especially finds itself in a pathetic situation, with some shops closed and some others just surviving. Retailers said authorities closed shops that continued to employ expats.
“Apart from the Iraq war, Saudization has also seriously affected the retail trade,” said a retail jeweler in Balad who asked to remain anonymous. The three-month grace period for retailers to Saudize their outlets ended a month before the start of the war. Showrooms that are open have been functioning without much success, as raids associated with the Saudization drive have dampened their enthusiasm, he said. “As it is, sales of gold and jewelry have touched rock bottom due to the Iraq war,” he added.
“Wars do bring down demand for gold and jewelry, and the war on Iraq is no exception,” said Usama Alwazir, World Gold Council’s Gulf manager. “Who would buy a luxury car, an expensive watch or a piece of jewelry when a war is on? So demand has naturally been low.”
Retailers admit privately that Saudization of the trade started in 1998, but none of them took it seriously enough to train and employ Saudis. “There have been no training programs on behalf of the trade to replace the expat work force. So the retail trade now finds itself in a do-or-die situation,” said Abdullah Alfursan, a retailer who has an all-Saudi outlet in the Kandara gold souk.
However, the gold and jewelry business has done well in the past three years, with the market growing at 3 to 8 percent a year. “The growth is largely due to pilgrims and business visitors touring the Kingdom all through the year,” Alwazir said. “The Haj and year-round Umrah seasons have largely contributed to the rapid expansion of the gold and jewelry retail trade in Makkah and Madinah,” he added.
Saudization at the jewelry manufacturing level in the Kingdom is said to be satisfactory. The Kingdom now manufactures 120 tons of jewelry a year, and manufacturers are able to meet 78 to 80 percent of local needs. Consequently, overseas imports have come down. “The Kingdom is now able to export jewelry, especially to the Gulf and Middle East,” Alwazir said.
“We expect the gold trade to emerge stronger in the Kingdom this year. A lot of small traders will close down or disappear, leaving the bigger players to organize themselves better,” Alwazir said.
