JEDDAH, 9 March 2004 — The two-day MEED Saudi Retail Forum concluded at the Jeddah Hilton here yesterday. The necessity to increase the proportion of Saudis in the retail work force was highlighted at the conference.
“There are good, qualified Saudis around. You just have to look for them,” Dr. Mohammed Moustafa Mahmoud, vice president, organizational development, Savola Group said in his presentation. Outlining some of the steps to attract and retain Saudis, he mentioned investment in their development, communicating potential career means, turning the personnel department into a human resource department, building a reputation as an employer of choice and using employee network.
He said it was necessary to define accountability, “to keep everything up front,” to explain to them what working in retail means, how demanding it is and what it takes to become a store manager. “In short, a clear road map,” he added. Mahmoud said that according to the labor law, an employee has the right to terminate non-productive Saudis.
Edmund O’Sullivan, editorial director of MEED, said that on the plus side, Saudi Arabian retail was the largest employer in the private sector, the Saudi economy was growing, disposable income was expanding and consumers were responding to new retail initiatives.
On the other hand, the retail sector was fragmented facing international competition and needed to substantially increase the proportion of Saudis in its work force.
The presentations during the two-day meeting included general reviews of the retail industry in the Kingdom as well as case studies of existing and new retail businesses, including the Jarir Group, a local success story, and IKEA and Starbucks that have come from overseas.
Nearly 30 speakers described the trends and prospects in one of the most dynamic elements of Saudi economy. “Jeddah is the gateway to this economy and this fascinating and enjoyable city is claiming its rightful place in the first rank of regional business and service centers,” O’Sullivan, said. “The city is growing rapidly and is set for a new phase of development. The new rules governing the pilgrimage could lead to a sharp increase in the numbers visiting this city, fuelling a lively retail industry, which is already one of the biggest in the Middle East,” he added. He said the delegate response was “tremendously” satisfying.
