To Work or Not to Work

To Work or Not to Work Sharif Al-Abdul Wahab • Al-Watan

We all know that the rule of supply and demand may benefit some at the expense of others. During the boom years of the 1980s, university graduates were pampered because there were few of them at a time of high demand for their qualifications. Graduates could take their pick of the many offers they had and employers would take them regardless of their area of specialization required for the job. All was well as long as the applicant was a college graduate. Within 10 years the trend changed dramatically and the number of graduates far exceeded the jobs available in the market. Employers became more selective and only looked for qualified applicants with good command of English. That continued throughout the 1990s, completely transforming the mechanisms of the job market and the relationship between employers and employees. Unemployment continued to rise. A quick Internet search under “unemployment” will produce hundreds of results. People keep asking why we have got to this stage. There have been a number of serious attempts in the past to address the problem, but none of them took into consideration the warning signs of economic slowdown and rising unemployment. Let’s use some mathematics. Saudis under the age of 18 make up 40 percent of the population, which translates into eight million, half of them female. Do we have four million job vacancies every four years? Definitely not. Based on this, attempts to solve the problem through the ongoing Saudization drive will not succeed and the rate of unemployment will continue to rise. Leaving people without work is dangerous and can lead to terrorism and crime. To have a solid base for tackling unemployment, there has to be long-term plans spanning 20 or more years. Such a strategy was used when Kingdom began its petrochemical industries drive in the 1970s, and now these industries have reached a very advanced stage. We need to have plans for future industries that can provide up to four million jobs every 15 years. The Malaysian experience is the best example for developing countries to adopt. The Indian experience in creating an Indian Silicon Valley is also worth studying. Our industries are still in an early stage of development, and we need to restructure and expand the industrial base, rehabilitate factories, establish suitable industries in the countryside to stop people moving into cities and introduce a unified minimum wage system for Saudization to succeed.

Saudization of Technical Jobs: Expats Doubtful of Success

Saudization of Technical Jobs: Expats Doubtful of Success Javid Hassan, Arab News Staff

RIYADH, 27 October 2003 — Expatriate workers from the subcontinent in the Hayyel Wuzarat district here say Saudization of technical jobs will succeed in numbers but not in substance. Popularly known as Hara, the area is dominated by largely working class Bangladeshis, Indians and Pakistanis. Saudis by and large avoid the area and Saudi women rarely shop here, partly because it is a favorite haunt of expatriate bargain hunters. The large number of expatriates in front of tea shops and restaurants or sitting on the parapet along the road discourages women from coming to the area. Recently the Ministry of Labor and Social Affairs said it will Saudize 25 job categories — from the sale of clothes, toys, abayas and perfume to cellular phones and car spares. Under the new regulations, the salesman in stores with a single employee must be Saudi, while in shops with two employees, at least one should be a Saudi. In the second year, 50 percent of the work force in such businesses should be Saudis, reaching 75 percent in the third year. But Masood Ahmad, a Bangladeshi worker, says Saudization of the lower rungs of the ladder is not feasible. He told Arab News that technical jobs available with private firms pay so little that Saudis will not accept them. Even if they do, he asked, are they willing to take orders from a supervisor who is invariably an expatriate? “We work anything from eight to 10 hours or more depending on the situation.” He said the only case where Saudization has apparently succeeded is when Saudi companies have been subcontracted by a government organization and the contract stipulates that the Saudi firm will increase its Saudi work force regularly by five percent every year. Muneer, a Pakistani, came here on an open visa after paying the equivalent of SR8,000. After a one-year search, he finally landed the job of an electrician. “It has been more than eight years and still I haven’t been home. My passport is with my sponsor, and he won’t give it to me. I am not getting my salary regularly. This has forced me to borrow from my friends and acquaintances. Given all that, how do you expect my Saudi sponsor to hire a Saudi and pay him SR1,500 instead of the SR800 that is supposed to be my salary,” he said. Alam, a Bangladeshi, says that before he came to Saudi Arabia 14 years ago, he worked as an electrician in Greece and earlier in Malaysia and Singapore. “I had to leave jobs in all three countries when my employers ran out of new contracts. But I never had any problem with them so long as I was in their service. I got my salary and all other promised benefits without having to remind them. Here, the situation is horrible. I have not been home for the last 14 years, because I have no work, no money, and no passport. My Iqama lapsed long ago and I am now illegal.” He earns his livelihood by cleaning cars.

Plan Approved to Saudize Sales Jobs

Plan Approved to Saudize Sales Jobs Staff Writer

RIYADH, 4 October 2003 — The Ministry of Labor and Social Affairs has approved a decision to Saudize 25 job categories in the sales sector, Al-Watan reported. Sales jobs in clothes stores, fabric stores, toys store, abaya stores, two-riyal stores, perfume stores, and shops selling car parts and cellular phones will be among those restricted to Saudis only. Ibrahim Al-Namlah, the minister of labor, issued a decision to enforce Saudization in three stages over the next three years. In the first year, the salesman in stores with a single member of staff must be Saudi, while in stores with two staff, at least one must be Saudi. In the second year, 50 percent of all workers in these stores must be Saudi, reaching 75 percent in the third year. The ministry took the action on the recommendation of a committee.

The Quarrel Over Saudization

The Quarrel Over Saudization Ibrahim Badaoud • Al-Watan

Tension is mounting between the Ministry of Labor and the private sector over how Saudization can best be achieved. While the ministry keeps threatening private businesses with stiff penalties for failure to employ more Saudis, companies on their part argue that the ministry’s way of doing things is not the right one and has to be revised. At first sight, it may appear as if a war is raging between the two sides, with the ministry issuing warnings and threats and the private sector replying by defending its policy and citing the reasons it says are preventing it from fulfilling the ministry’s demands. Although the number of Saudis employed in the private sector is on the rise, the overall percentage stands at 13 percent of the total workforce. Saudis now number 535,904 out of a total workforce of 3,817,038 in the private sector. The percentage tends to increase slightly in those private businesses employing more than 20 workers, where it reaches 16 percent. It is true that all those involved in the Saudization process hail from the same country and are all working for the national interest; but it is equally true that they have different interests and may not necessary see eye to eye on how this should be done. The ministry wants Saudis to have work, while the private sector wants to ensure that their investments and profits are unaffected in the process. In the end, a businessman’s main concern is to make profit, something they may not be ready to compromise on. Among the justifications cited by the private sector for not employing young Saudis is that they lack the qualifications and skills sought by the market, they are undisciplined, and lack self-confidence. This, they say, is why Saudis keep jumping from one job to another, and above all, they are troublemakers and lack the proper knowledge of how to deal with customers. What the ministry should do is start studying all these complaints and work with private companies to find solutions instead of resorting to a tactic of threats and penalties. Such methods may work temporarily, but in the end it is through conviction and mutual consent that results are achieved. We should start asking ourselves difficult questions and sit down to solve them. Why should Saudi businessmen prefer foreigners to their countrymen? What is it that distinguishes the expatriate worker? What is it that makes Saudis resort to cover-ups and fraudulent tactics to keep their business running with the help of foreigners? How did the foreigners gain this trust and achieve such status in the first place? Let us initiate an earnest and frank debate instead of trading blame and accusations. - Arab News From the Local Press 31 July 2003

Abdullah Orders Saudization of 21 More Sectors

Abdullah Orders Saudization of 21 More Sectors Staff Writer

JEDDAH, 16 April 2003 — In a significant move aimed at creating at least 200,000 jobs for Saudis, Crown Prince Abdullah, deputy premier and commander of the National Guard, has ordered a government committee to work out the modalities for replacing foreign workers in 21 different job sectors with Saudis. Prince Abdullah instructed four ministries — interior, labor and social affairs, finance and national economy, and planning — to study the matter and submit recommendations to him, Al-Watan newspaper reported yesterday. They include retail jobs in such areas as readymade clothing, children’s toys, furniture, electrical and household appliances, car showrooms, auto spare parts, construction materials and mobile phones. Other job sectors to be Saudized include bookstores and stationery, footwear, perfumes, car decoration, paints, tailoring materials, abayas, the sheep market, frozen chicken, and shops renting materials for special ceremonies. The Arabic newspaper said Labor and Social Affairs Minister Dr. Ali Al-Namlah had already proposed a gradual replacement of expatriate workers employed in these jobs over the next three years. In the first year, each shop must appoint at least one Saudi, and Saudis should constitute 50 percent of employees in the second year and 100 percent in the third year. In a related development, the Interior Ministry reminded taxi companies that Saudi drivers must constitute 30 percent of all staff within 10 days as a prelude to complete Saudization. In a circular issued yesterday, the ministry urged taxi companies to keep their records in order and present them to the Communications Ministry within two weeks; the records must include a list of all foreign drivers employed. Saudi Arabia implemented last month a decision barring foreigners from working as salesmen and administrators in jewelry shops; the decision is aimed at creating 20,000 job opportunities for Saudis. The Labor Ministry has also instructed banks to Saudize as soon as possible some 9,770 jobs currently held by expatriates. At present Saudis constitute 66 percent of the banking work force. The rate of Saudization ranges from 58 to 75 percent with the National Commercial Bank leading with 75 percent Saudization. Unemployment among Saudis has been rising steadily with a recent unofficial study indicating that the rate is more than 30 percent. Interior Minister Prince Naif, however, put the figure at less than 10 percent. About three million out of a total of seven million foreigners in the Kingdom will be phased out within 10 years. A government decision in February limits the number of foreign workers and their families to less than 20 percent of the Saudi population by 2013. Since the mid-1990s, the Saudi government has taken a series of steps aimed at facilitating the entry of Saudi job seekers into the private sector since the public sector had reached saturation. The 2000-2005 state plan aims to create more than 800,000 new jobs for Saudis, mainly by replacing foreigners. The Manpower Development Fund’s board of directors met in Riyadh recently and made allocations to train and employ 20,000 Saudis this year.

We’ll Fill All Jobs With Saudis, Says Naif

We’ll Fill All Jobs With Saudis, Says Naif P.K. Abdul Ghafour, Arab News Staff

JEDDAH, 21 April 2003 — Interior Minister Prince Naif yesterday called for joint efforts by the public and private sectors to help the Saudization drive. “Saudization is a strategic choice of the Kingdom at this important juncture in its development,” he said during Careers Day at Umm Al-Qura University in Makkah. Prince Naif, who is also chairman of the Manpower Council, said he hoped development projects, the privatization of services and expansion of the tourism sector would create new job opportunities for young Saudi graduates. “Our objective is to fill all jobs with Saudis,” the prince said during an open dialogue with students and teachers of the university. He urged the authorities to intensify their efforts to train Saudis for the jobs available in the market. Prince Naif’s statement comes hard on the heels of a new order by Crown Prince Abdullah to create at least 200,000 jobs by replacing expatriates with Saudis. The minister said government agencies and private firms must employ Saudis and improve their competencies by providing them with the necessary training. Commenting on a proposal to set out a standard for salaries in the private sector, the prince said private companies must provide reasonable salaries to Saudi employees. He emphasized the need to open more technical and vocational institutes to provide training to Saudis, especially for jobs related to tourism and the hotel business. He commended the competition among Saudi universities to create job opportunities for their graduates. The Careers Day at Umm Al-Qura University is expected to provide 3,200 jobs to its graduates. “God willing a time will come when there will be no competition for Saudis. Competition will only be between the Saudi graduates themselves, and the most qualified and capable will get the job,” he explained. The minister also reiterated the Kingdom’s commitment to bringing the prisoners held by the US at Guantanamo, Cuba, back to the country. “We are following the issue of Guantanamo prisoners with the utmost interest,” he added. He said there was “no increase” in the number of Saudi prisoners held in Guantanamo. The prince said he could not see any benefit in reopening the file of the Saudi hijackers who had taken refuge in Iraq in October 2000. “We don’t know anything about the situation of the hijackers and we are not concerned with this issue,” he said. Prince Naif said he hoped the repercussions from the US-led war in neighboring Iraq would be minor.

Saudization

Saudization Saeed Haider, Gulf Bureau —

DAMMAM, 20 April 2003 — The recent announcement that the government is to Saudize jobs in another 21 job sectors reflects its concern over the increasing unemployment rate in Saudi Arabia. In the past two years, drastic measures have been taken to replace expatriates with unemployed Saudis. Unofficial sources say that unemployment is approaching 25 percent, higher than the official estimate of around 11 percent. If one goes by law of averages, then a safe bet would be around 18 percent. This figure will certainly not allow the planners to remain complacent. Every year after the announcement of the annual economic report, a new Saudization plan is announced to provide more jobs to Saudis and reduce the expatriate ratio in both the public and private sectors. It is heartening to note that the focus of Saudization has shifted from top grade positions to low level jobs. This change in focus reflects government’s decision to go for Saudization at grass roots level. In the early 1980s when the government embarked on a plan to Saudize the manpower sector, the planners focused on top and middle management. This approach not only affected productivity, but also the overall performance of such companies and establishments. With a determination to Saudize jobs at the grass roots level, the authorities started identifying sectors that could be completely Saudized. Once again, confusion started to creep in. One fine morning it was decided that the entire fruit and vegetable trade should be Saudized, and the next moment there were raids on fruit and vegetable stalls across the country. If any expatriate was found staffing the shop, he was arrested and the shop was closed down. This drastic measure led to complete confusion in the trade, which subsequently reported huge financial losses. One reason for such a drastic measure was that many expatriates, mainly Bangladeshis, owned the fruit and vegetable shops, which the government decrees is illegal. Things would have been more realistic had the government allowed expats to work in the shops and thus avoid the need to deceive the authorities. The raids on shops led to a very interesting scenario. In the day time the shops were manned by Saudis only because there were fears of raids; in the evening expats were back at the stall, assuming that there would not be any raid late in the day. But today even during the day time expats are working at vegetable shops and things are back to square one. Recently, the government announced that all the gold jewelry shops should employ only Saudis. For a few days everyone followed the rule but now expats are back in the shops again. At many shops in Dammam and Alkhobar, expat workers stand outside the shop and when a customer enters it they accompany him inside. Once the transaction is complete, they leave the premises with the customer. Last year it was announced that Saudis would replace all expat taxi drivers within six months. Later that decision was deferred and a certain percentage was to be Saudized. What was not taken into consideration was that, economically and socially, complete Saudization was not feasible unless the entire limo industry was reformed. One has to accept the fact that if not today then tomorrow this country has to be run only by Saudis. That said, it is imperative that the manpower sector should be Saudized in a more realistic way. It has to be done gradually, and thoroughly. There is no magical wand that will change the scenario overnight.