Saudization drive in place; businessmen feel the heat

JOB OPPORTUNITIES: Saudization programs hope to widen job opportunities for Saudi men and women to join the labor market. (Reuters)

MADINAH: Praising the ongoing campaign by Madinah Gov. Prince Faisal bin Salman to implement Saudization, a Labor Ministry official said that people in general are taking initiatives to support the plan.

Naji Al-Ahmadi, director of the Inspection Department at the Madinah branch of the Ministry of Labor and Social Development, said the Saudization drive that aims to free all the stores of expats will meet its target by the end of this Hijri year.
Any employer found violating the order will invite penalties and closure of of shops.
“Any violation by the employers will be a cause to shut down the stores with financial penalties, and I hope they start responding to the Saudization decision," he said.
Al-Ahmadi said: "We have also a place for women to sell mobile phones in Al-Qiblatain; there is another location at Taibah University, and there are training programs for them.”
He confirmed about merging the Ministries of Labor and Social Affairs: “The integration of the Ministry of Labor and Social Affairs is a visionary step. Minister of Labor and Social Development Dr. Mufrej Al-Haqabani gives great attention to this integration.”
In a related development, the closure of nearly 50 percent of mobile phone and accessory shops due non-availability of Saudi technicians has affected the businessmen in the Nariyah area
It is said that at least 20 percent of the stores have achieved the required Saudization ratio. But some stores have kept expats employed in Nariyah and Mulayjah.
Mohammed Al Ajmi, Mutlaq Al Otaibi, Mohammed Al Subaie, and Mansour Al-Zahrani explained that the Saudization decision has its benefits for many young Saudis. However, shop owners have been affected by this decision, because they cannot afford paying SR8,000 to Saudi technicians, in addition to SR5,000 to sales employees, not to mention shop rent, electricity and shop maintenance expenses.
Businessman Nawaf Al Mutairi believes that expats working in some stores will create a gap in prices between stores committed to Saudization and those which are not because customers will choose to buy from stores that offer lower prices.