DAMMAM, 14 July 2003 — As the deadline for complete Saudization of taxi drivers comes closer, there is no sign that the taxi companies are ready for the transition. Far from it: More and more foreign drivers arrive in the Kingdom every day.
The government earlier announced that all the taxi drivers would be replaced by Saudi drivers but later deferred its decision by six months in order to give companies time to finalize arrangements for a smooth transition.
The owners of taxi companies privately say that the switch from foreign to local drivers will cost them a fortune, and many small companies may even face closure.
Nearly 90 percent of the taxi drivers are Asians, and none are paid any salary. Although the Ministry of Labor in cooperation with the Ministry of Communications made it mandatory for taxi companies to pay a salary, only the biggest companies have taken nominal steps to do so. But even these companies merely have drivers sign salary vouchers without giving them any money.
Asian drivers instead work on a commission basis. They pay between SR135 to SR150 a day to the company, and they keep anything they make above that. In addition, they get Fridays free. Maintenance and gasoline etc. are the drivers’ responsibility. They also pay for their iqama (residence permit), exit and re-entry visa and accommodation, and there is no end-of-service benefit.
Transport industry experts say that if Saudi drivers are to replace foreign drivers, they will not accept these conditions. They are likely to ask for a regular salary and benefits, and this will tremendously increase overheads for the taxi companies.
Industry sources say that if the authorities want to implement Saudization in this sector in a more tangible manner, they will have to revamp the taxi business first, and tough action should be taken against companies flouting the rules.
It is not that the government has tuned a blind eye to the problems of the taxi companies. A number of steps were taken to reform the sector, but few companies implemented them. There is no shortage of Saudi drivers willing to work in the sector once conditions improve. Unemployed Saudis using their own vehicles as informal taxis are a common sight in major Saudi cities.
