Fewer jobs for expats
By Syed Rashid Husain
RIYADH: With unemployment among nationals at 20 per cent, the Saudi government has announced nationalization of 22 more job sectors, limiting the openings in those sectors to the Saudis only.
The labour departments of the Saudi government would, hence, no longer approve issuing of new visas to private sector companies here to contract expatriates for these positions. No longer would the private sector be allowed to employ foreigners in these categories. The residence permit of expatriates already working in those positions may also no longer be renewed once they expire.
The private sector is the largest employer of expatriates, including the vast majority of almost the million Pakistanis, in the kingdom. Over five million foreign workers are currently employed by the private sector — almost 96 per cent of the total workforce in the private sector, whereas the Saudis in this sector number 409,020, including women. Some Saudi women could now be seen working in various private hospitals and educational institutions of Saudi Arabia in different administrative and clerical capacities.
The jobs that have been nationalized include administrative managers and their assistants, procurement managers, secretaries, car showroom salesmen, public relation jobs, sales managers, airline-ticketing salesmen, office messengers, clerks, telephone and communications operators, storekeepers, money collectors, cashiers, money exchange clerks, postmen, information and data processors, librarians, books salesmen, building supervisors and tourist guides.
The decision also applies to some 600 Haj and several hundred Umrah offices employing thousands of expatriates. Expatriates working in these offices will now be required to be replaced by the Saudis in these Haj and Umrah offices. These offices, specially those catering to the pilgrims from South Asia, used to employ a number of Pakistanis and Indians, so as to facilitate communication with the pilgrims coming from that region.
The kingdom had nationalized 13 job sectors over the last few years, so as to tackle the menace of unemployment in the country. Last year, it banned expatriates under 40 from working in jewellery shops.
Also last year, two laws came into effect ordering corner grocery stores to hire only the Saudis and asking the private sector businesses employing more than 20 people to increase the number of nationals to 30 per cent of the workforce. As per the regulations, this percentage needs to go up by five per cent every year.
Some of the private businesses, which failed to comply with the Saudiization level, were refused visa extension. They also had to face other bottlenecks while being forced to comply with the Saudiization levels.
To encourage the private sector, the kingdom also set up an apex manpower development fund last year to help the Saudis to obtain employment in the private sector. Charging expatriate worker in the private sector SR10 every year finances the fund. The fund has already collected about SR400 million within the first 10 months of its establishment. The money thus generated is spent on training the Saudis, as well as in paying part of their salary, in the private sector for a few years.

