RIYADH, 8 September 2005 — Abdulrahman Al-Jeraisy, chairman of the Council of Saudi Chambers of Commerce and Industry, has called on the authorities to further liberalize the economy so as to facilitate the repatriation of funds from abroad.
Addressing a press conference at the Riyadh Chamber of Commerce and Industry, he said even though the government has taken some steps in this direction, there was room for further concessions in order to boost the inflow of capital into the Kingdom and check its migration to the neighboring states.
In this context, Al-Jeraisy, who is also the RCCI president, proposed the establishment of free trade zones in the border areas and separate industrial estates for software and electronic as well as the petrochemical industries to give impetus to the Kingdom’s industrialization program. “We have all the infrastructural and support facilities for the success of such a scheme,” he observed.
On the question of price rise, he said the chamber was monitoring the situation.
“We have found that the price rise is justified in some cases. Where there is no basis for jacking up the price, the chamber will ask the dealer for an explanation and open a file on his company, if necessary. We hope the traders will not increase the price, as it will be counter-productive for their business.”
Referring to the proposal to fix SR1,500 as the minimum salary for Saudi employees, he said its implementation is optional. However, the Ministry of Labor and the General Organization of Social Insurance (GOSI) would closely monitor the implementation of the new pay scale. Those abiding by the royal decree would be eligible for the grant of visas and other incentives.
Calling on the Saudi employees to be patient, Al-Jeraisy said the baseline of their pay scale was not the end of the road. Their emoluments would increase if they are diligent and show result.
“When we submitted the proposal to fix the minimum salary of Saudi employees at SR1,500, we took into consideration all the factors relevant to the move. The new starting salary signals our desire to strike a balance between the employer and the employee,” he said.
Asked about the basis for fixing the minimum salary at SR1,500, Al-Jeraisy referred to a survey conducted by the council, which showed a wide disparity in the pay structure of Saudis at the lower end of pay scales. “But the majority of respondents agreed that the bottom line of SR1,500 would be quite reasonable.”
In reply to a question on higher salaries for Saudis in the middle scale, he said they could always rise according to the level of their professional competence. He called on the Saudi authorities to develop the potential of Saudi students by giving them high quality training during summer. In this context, he cited the example of King Fahd University of Petroleum and Minerals (KFUPM) whose alumni have carved out a niche for themselves in the labor market.
