They also underscored the need to extend improved government support to small and medium enterprises (SMEs) to check the influx of foreign workers in the Kingdom’s job market.
It is estimated that foreign workers transfer annually more than SR80 billion through various money exchanges and banks to their countries, not taking into account funds transferred illegally, according to a report by Al-Riyadh Arabic daily.
The domination of foreigners in the labor market, especially in the SME sector, happens at a time when the government’s Saudization drive has been hit by serious setbacks since its introduction 15 years ago.
Even the new minister of labor admitted recently the drive has so far not had any noticeable success and that most Saudization programs have failed to achieve their desired goals. “Serious efforts need to be made to employ qualified Saudis in the place of foreigners who dominate most local sectors,” Adel Fakieh said.
Commenting on the issue, prominent economist Dr. Muhammad Al-Jadeed said that inflation remains one of the major internal problems facing the Kingdom’s economy.
“Before 2002, inflation was not at all a major problem until it reached double digits and peaked at 11 percent. However, it is now on a downward path again thanks to a series of economic measures and reforms implemented by the government,” he said, while urging government agencies to support Saudi-owned small enterprises financially.
He said it would give more unemployed Saudis the incentive to become employers themselves, and reduce the number of qualified jobless young Saudi men and women. He added that procedures, including those related to business licenses, should be simplified so Saudis can launch such enterprises.
“More than 120,000 young Saudi men and women will return to the Kingdom in the near future after completion of their higher studies under the King Abdullah Scholarship Program abroad. It is impossible to hire all of them in the government sector,” he said.
Al-Jadeed also called on government agencies to develop a five to 10 year plan with specific goals and policies. The plan should contain specific programs to support the SME sector in a way that also serves the interests of jobless Saudis, he added.
Dr. Tawfeeq Al-Suwailem, another economist, said Saudi Arabia has managed to reduce the impact of the global meltdown on its economy at a time when other countries are still struggling.
“The Kingdom has implemented a raft of measures and wise policies to weather the global crisis externally. On an internal level, the Kingdom must implement programs in various government sectors for the benefit of citizens and the development of the SME sector,” he said, while calling for a substantial hike in budgetary allocations for this vital sector of the economy.
Referring to bureaucratic bottlenecks, Tawfeeq said SMEs face major hurdles in their efforts to secure government and bank loans.
He attributed this mainly to a lack of economic flexibility as well as a delay in government decisions on issues concerning this sector, which account for nearly 90 percent of the Kingdom’s businesses.
Tawfeeq drew attention to the findings of official economic reports that claim small enterprises received only about 20 percent of commercial loans granted by various financial firms and banks last year.
