JEDDAH: Young Saudi businessmen demand that more flexible financing facilities should be available for them to get maximum benefit from the latest move by the Ministry of Labor to generate more employment opportunities for Saudis.
The Ministry announced earlier in the month that all small scale establishment including establishments employing less than nine workers will also by governed by Nitaqat.
“This is the right time to make a move help youths with flexible financial methods so that they enable to take advantage of the newly generated opportunities in small scale sector especillay in the retail sector,” said Thamir Al-Awad, deputy chairman of the National Committee for Young Businessmen.
The ministry’s move is expected to reduce tasattur (commercial cover-up) by 40 percent, Al-Eqtisadiah business daily reported on Saturday.
The ministry’s order means that all small business establishments including small shops should employ a permanent Saudi worker with the General organization for Social Insurance (GOSI) registration.
The freedom of a substantial number of small business firms from commercial cover-up will reduce the competition from expatriate workers and offer new business opportunities to Saudi men and women.
The stiff competition of small scale expatriate businessmen across the country was a major factor that deterred Saudi youths from opening retail outlets.
He said monitoring expatriate small scale retailers is hard and that is why they have been continuing cheating their sponsors without revealing their actual profits but at the same time registering the Saudis as their workers at GOSI.
“The establishments that cannot shoulder the stipulated salaries to Saudi workers and payment of GOSI subscriptions will be forced to quit the market,” he said.
He also demanded close inspection of all small or big business activities to discover and eradicate cover up business activities that has proved a drain on the national economy.
He said 80 percent of the retail sector is actually owned by expatriates and it will be cut to 40 percent because of the new regulations.
“The situation will generate plenty of opportunities for the Saudi youth in the business sector and enable them independent and not wait for office jobs or the Hafiz allowance which by mistake many youth considered an income,” he added.
Initially the ministry had exempted establishments such as small shops employing less than nine expatriates from the Nitaqat stipulations. But the latest decision of the ministry has withdrawn that exemption by stipulating that at least a Saudi should be appointed in all establishments with appropriate GOSI subscription. This move is a prelude to the next phase of qualitative Saudization which will be launched early next year.
Saudi businessmen want flexible financing facilities
