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.