The “Hafiz” program provides financial assistance to Saudi men and women who are not employed until they are provided with a job opportunity. The program’s regulations with regard to the amount of benefits and application process are still not finalized.
The program is the result of a royal decree by Custodian of the Two Holy Mosques King Abdullah with directives to motivate the unemployed to look for decent jobs and ease their suffering in the meantime.
Unemployment among Saudis reached 10.5 percent, according to a report released by the Central Department for Statistics and Information in 2009.
There are around 248,000 and 200,000 unemployed men and women respectively.
Fakieh said during a meeting at the Riyadh Chamber of Commerce in December that unemployment levels had remained the same and efforts to Saudize 10 percent of the work force were not successful.
On the other hand, the Labor Ministry’s spokesman Hattab Al-Onaizi confirmed new Saudization rules would be announced and applied soon, admitting there had been setbacks in applying them previously.
“The new regulations will motivate companies and establishments to hire more Saudis,” said Al-Onaizi, adding there will be a system of incentives and sanctions in place.
Hafiz, according to Al-Onaizi, will provide a link between job providers and jobseekers who will be considered according to their skills and qualifications.
The unemployment benefits will only be offered in case the jobseeker does not find a suitable job.
An official body will be monitoring the jobseeker's application and evaluate his or her efforts in finding work. “The benefits are limited as they are just a motivational mechanism,” added Al-Onaizi.
In 2007, Shoura Council members rejected a bill on unemployment benefits. The sponsoring member said there were 7 million expatriates working in the Kingdom and that this indicated there was “no recession, but disorganization.”
In January 2010, the Shoura Council was again presented with an unemployment benefits bill, which was forwarded to a committee for further consideration.
“The Shoura Council has 150 members and each member has a viewpoint that we respect and consider,” said Shoura member Mohammed Al-Gwiahis, clarifying that although there was a delay in studying the bill, it was eventually reconsidered and approved.