Abu Dhabi: Inspection teams from Saudi Arabia’s Ministry of Human Resources carried out 20,535 visits to all companies across the Kingdom toensure commitment to localisation rules.
The teams recorded 2,042 violations during the March 23-29 inspections, while 90 per cent of companies complied with the rules, the ministry said in a statement.
Authorities conduct surprise inspections on markets to ensure policies are being followed. If caught breaking the rules, a business is liable for heavy fines and possible closure, the ministry added.
Saudisation: What it means
Saudisation or Nitaqat, is an initiative implemented by Saudi Arabia’s Ministry of Labor and Social Development.
It dated back to the 4th Development Plan of the country (1985-1989). Being revived throughout the years with variable success, Saudisation is in full force today to help with overcoming the high unemployment rate among Saudi nationals (11,6 per cent in 2019). The government aims at decreasing that number to 7 per cent by 2030, a key priority at the Saudi Vision 2030`s reforms — a national strategy for weaning off the country from the oil and diversifying its economy.
Recently, many foreigners have been laid-off, replaced or terminated because of the implementation of the new law. According to the Nitaqat requirements, the private sector is obliged to hire a certain percentage of Saudis, depending on the profile of the company and the number of employees.
The private sector entities are classified into six categories. Only companies with less than 10 employees are exempted from the zoning, but they have to hire at least one national, accordingly. In some markets, the foreign workforce has been replaced with Saudi nationals already, while others are pending their enforcement dates. For instance, all dentistry jobs are reserved for Saudis starting March 2020, as per the latest decision. The changes are due to happen gradually, with parallel training and education programs provided. Another example is Saudi Aramco — the national petroleum and gas company, one of the largest companies in the world by revenue. It is expected to have achieve 90 per cent of Saudisation by now.
Banned jobs for foreigners
The following sectors are no longer eligible to employ foreigners on some positions:
All clothing retailers (women, men, children)
Banking (tellers, in-branch support)
Gold markets
Telecommunication (offices, storefronts)
Home furnishings (sellers)
Auto shops and spare parts (desk officers)
Office supplies
Electronics
Medical equipment
Building materials
Watches and clocks
Optic stores
Pastry shops
Carpets
Entertainment
By law, it is also required to employ Saudi women in any retail sector that sells products meant for women (clothing, make-up, accessories, etc.) or provides services for women.
