JEDDAH/DAMMAM, 9 March 2004 — In the commotion surrounding the Saudization of the gold and travel business, the 25 other economic activities that were to be partially Saudized by Feb. 21 have been forgotten. Authorities have made no effort to check if Saudization has been implemented.
The areas are readymade clothing, children’s toys, furniture, electrical and household appliances, car showrooms, auto spare parts, construction materials and mobile phones.
Other job sectors to be Saudized include bookstores and stationery, footwear, perfumes, car decoration, paints, tailoring materials, abayas, the sheep market, frozen chicken, and shops renting materials for special ceremonies.
The secretary general of the Manpower Council, Abdul Wahed Al-Humaid, estimated some 20,000 jobs would be created, depending on how traders adjust to the Saudization process. Under the plan to Saudize the 25 economic activities, the first year each retail store must appoint at least one Saudi, and Saudis should constitute 50 percent of employees in the second year and 100 percent in the third year.
A spokesman for the Jeddah Chamber of Commerce told Arab News that annual Saudization requirements differ from one retail sector to the next, but all 25 must be completely Saudized by the third year.
That is news to many in the retail industry.
Abdullah Khider runs a watch store in Jeddah’s International Market. “Right now I’m all that is required in our store. When the labor office want more we will increase,” he said. But he said he had no idea what next year’s quota will be.
Economist Talal Mufti does not feel comforted by the deputy minister’s words. “The three-year grace period given to Saudize the retail industry was ignored during the first couple of years, which left many scrambling to achieve complete Saudization,” he said.
Mufti warns that the fact that the ministry is still issuing visas doesn’t mean they are not going to hold these stores accountable for not Saudizing all along the three-year period.
Unemployment among Saudis has been rising steadily with some placing the figure as high as 30 percent.
About three million out of a total of seven million foreigners in the Kingdom will be phased out within 10 years. A government decision in February 2003 limits the number of foreign workers and their families to less than 20 percent of the Saudi population by 2013. The 2000-2005 state plan aims to create more than 800,000 new jobs for Saudis, mainly by replacing foreigners.
In the Eastern province, a survey of the market showed that many shops here were also unaware that the Saudization of their business has begun.
Tak Tak Center for sewing materials is completely manned by expatriates and the supervisor manning the shop was not aware of any Saudization effort.
A shop which deals in plumbing supplies in King Saud Street in Dammam is also managed and run by expatriates. The owner is a Saudi but the entire staff is of Asian origin. “Maybe my sponsor knows (about Saudization) but he never told us,” the supervisor said.
The owner of another shop selling construction goods was aware of this new regulation but did not appear to take it seriously. “We have three years to complete the process,” he said. “Talk about it in three years. Why bother me now?”
In the Thugba Sanaiya center for automobile spare parts, a majority of the staff are either Indians or Yemenis.
They say the Saudization process has not yet started. “We don’t know anything about Saudization. Our sponsor has not yet hired a single Saudi for his shop. I don’t think it will work,” said a Yemeni counter salesman in a shop dealing in spare parts for American cars.
Many expatriates and Saudi shop owners believe that in reality nothing will happen, citing the example of the vegetable market which was supposed to be 100 percent Saudized nearly four years ago. “Nothing has changed there. The authorities realized the reality that their decision was not practical and hence they started ignoring it,” said Saleh, who owns a workshop and a spare parts shop in Thugba.
Deputy Minister of Labor and Social Affairs Ahmed Mansour Al-Zamil has meanwhile denied rumors that the ministry has stopped processing of work visas for small businesses as part of the Saudization efforts, Al-Madinah newspaper reported.
Al-Zamil said the ministry issued no orders to stop the processing of work visas or any other procedure affecting small businesses. He confirmed that labor offices in other regions are still issuing visas for all businesses.
