Mar 9, The kingdom launched the nationalisation plan, called "Guided Localization," Tuesday, with the aim to achieve total or partial "Saudization" in several sectors, starting with the cellphone industry, with notices sent to mobile phone companies to ensure percent employment of Saudis by Sept.
Show comments Saudi Arabia began an aggressive "Saudisation" campaign of four retail and wholesale sectors on Tuesday, as the Gulf country presses ahead with economic reforms.
In January, the Ministry of Labour and Social Development announced the gradual plan to restrict employment in 12 sectors to Saudi nationals over three phases, the first of which to begin this month.
The plan aims at reducing unemployment among Saudis, currently standing at Under the reform agenda spearheaded by Crown Prince Mohammed bin Salman, the government seeks to reduce unemployment to 7 percent by On Tuesday, inspectors from the ministry started the first phase by monitoring the implementation of the Tawteen nationalisation scheme for car and motorbike showrooms, shops selling ready-made garments for men and children, home and office furniture shops and shops selling kitchenware.
The four trading activities are due to become 70 percent "Saudised" under the supervision of the ministry. Violators will be penalised in accordance with Saudi labour laws, the ministry said. In response to the new restrictions, many shops have either shut down completely or reduced their number of branches, due to the higher costs of employing Saudis and the lack of skilled labour, economic daily Al-Eqtisadeya reported after interviewing shopowners.
On 10 November, the scheme will extend to shops selling watches, eyeglasses and electric and electronic appliances, and on 8 January it will be applied to shops selling medical equipment, building material, spare car parts, carpets and confectionaries, the ministry said.
The three phases aim at creating a total of 60, jobs, he said. Pro-government Saudi economic analyst Abdelhamid al-Omari said that at least one million foreign workers will leave their jobs over the coming three months, andwill be deported.
This would mean that more than 3. Economic expert Abdullah Al-Maghlouth told the Saudi daily Al-Madinah that Saudisation will increase the costs of hiring workers by 30 percent.
Member of the Jeddah Chamber of Commerce, Walid Al-Omary, said that some small shops will not be able to afford the expenses of Saudi labour, and may therefore be forced to change their activity or switch to online marketing to reduce staffing.Saudi Arabia sees drop in expatriate workforce as unemployment rises AW staff Saudi Ministry of Labour and Social Development is studying a proposal to reduce the Saudisation targets in some retail sectors from % to 70%.
Unemployment peaked in at % (Saudi Ministry of Labor, ); this was due mainly to structural problems such as competition from lower paid foreign workers. In addition to the problem of the many unskilled Saudi workers who need training in order to be integrated into the labor market, there is a demographic issue: the largest age group is the youth between 20 and The Saudi Government took the decision to reduce unemployment among native Saudis, under the slogan 'Let's Put the Saudi in Saudization'.
  Companies which "fail to comply" with Saudization regulations have been warned that they "will not be awarded government contracts". .
80% of unemployed Saudis prefer public sector jobs. Furthermore 26 per cent of Saudi’s in the capital believe that rising unemployment in the country is due to a lack of appropriate job.
Saudi Arabia began an aggressive "Saudisation" campaign of four retail and wholesale sectors on Tuesday, as the Gulf country presses ahead with economic reforms. In January, the Ministry of Labour.
In , “Saudization” was launched as a way of replacing expatriate with Saudi workers for localization jobs, but after 37 years of unemployment is still one of the important topics of concern to citizen.