[Saudi Arabia] Saudisation policy could take jobs from thousands of Indian expats

The decision of the Ministry of Human Resources and Social Development in Saudi Arabia to bring another 30 professions - including accountants, teachers, doctors and engineers - under the umbrella of the Saudisation programme (nationalisation of jobs) in 2022 has become a direct threat to the livelihoods of Indian expatriates in the Gulf country, The Hindu reports.

Thousands of Non-Resident Indians, especially from Kerala, are likely to lose their jobs in grocery stores, supermarkets and restaurants under the second phase of the Nitaqat drive - the Saudi government’s national employment scheme -.which came into effect on March 28.

The posts of general supervisor, cash counter supervisor, customer service executive and accountant will now be fully reserved for the local Saudi population. And 50 per cent of the posts of branch manager, assistant manager and department manager will be filled through Saudisation. The latest move applies to catering establishments and supermarkets with an area of 300 sq. m and 500 sq. m respectively.

“The move will help large grocery shops and supermarkets to employ more Saudis, which in turn will reflect positively on nationalisation efforts. But Indians who are employed in this sector will lose their jobs,” Mohammed Hussain - an Indian business owner in Saudi Arabia - said.

Abdu Jaleel, another investor, said the new rules were brought in to eliminate any cover-up in business establishments. “Most of the small groceries employ Indian expats. Besides, the administration can keep a tab on transfers of huge foreign funds,” he said.

Saudisation is seen as a setback for Indian expats who for decades have dominated the labour market. Over 25 lakh Indians live in Saudi Arabia, according to the Ministry of External Affairs and thousands of Nitaqat-hit expatriates have been returning home since 2011.

Previously, sectors such as transportation, construction, manufacturing, car rental outlets and showrooms for textiles, mobiles, carpets, furniture and household goods fell under the Saudisation category. Now the new focus is reportedly on tourism, hospitality, housing and real estate segments.

Nitaqat obligates companies with more than nine employed staff members to hire a certain percentage of Saudi nationals. A coloured status is assigned to each company based on type, size and percentage of Saudi employees.

The dual hit of the COVID-19 pandemic and lower oil prices had already resulted in unprecedented job loss for expatriates. “Saudisation forced me to return to Kerala after the government refused to renew residence permit for categories in the nationalisation programme,” Anil Gopinath - a Gulf returnee - told The Hindu.

As part of the Saudi Vision 2030 reform programme, private companies and businesses must employ Saudi Arabia nationals by replacing foreign workers. Unemployment in Saudi Arabia exceeded 15 per cent in 2020.

However, the rigorous Saudisation programme led to the creation of 400,000 jobs in 2021 and the Saudi government intends to increase the rate of its nationals in economic participation by 60 per cent in 2030.

Source: The Hindu

(Quotes via original reporting)

The decision of the Ministry of Human Resources and Social Development in Saudi Arabia to bring another 30 professions - including accountants, teachers, doctors and engineers - under the umbrella of the Saudisation programme (nationalisation of jobs) in 2022 has become a direct threat to the livelihoods of Indian expatriates in the Gulf country, The Hindu reports.

Thousands of Non-Resident Indians, especially from Kerala, are likely to lose their jobs in grocery stores, supermarkets and restaurants under the second phase of the Nitaqat drive - the Saudi government’s national employment scheme -.which came into effect on March 28.

The posts of general supervisor, cash counter supervisor, customer service executive and accountant will now be fully reserved for the local Saudi population. And 50 per cent of the posts of branch manager, assistant manager and department manager will be filled through Saudisation. The latest move applies to catering establishments and supermarkets with an area of 300 sq. m and 500 sq. m respectively.

“The move will help large grocery shops and supermarkets to employ more Saudis, which in turn will reflect positively on nationalisation efforts. But Indians who are employed in this sector will lose their jobs,” Mohammed Hussain - an Indian business owner in Saudi Arabia - said.

Abdu Jaleel, another investor, said the new rules were brought in to eliminate any cover-up in business establishments. “Most of the small groceries employ Indian expats. Besides, the administration can keep a tab on transfers of huge foreign funds,” he said.

Saudisation is seen as a setback for Indian expats who for decades have dominated the labour market. Over 25 lakh Indians live in Saudi Arabia, according to the Ministry of External Affairs and thousands of Nitaqat-hit expatriates have been returning home since 2011.

Previously, sectors such as transportation, construction, manufacturing, car rental outlets and showrooms for textiles, mobiles, carpets, furniture and household goods fell under the Saudisation category. Now the new focus is reportedly on tourism, hospitality, housing and real estate segments.

Nitaqat obligates companies with more than nine employed staff members to hire a certain percentage of Saudi nationals. A coloured status is assigned to each company based on type, size and percentage of Saudi employees.

The dual hit of the COVID-19 pandemic and lower oil prices had already resulted in unprecedented job loss for expatriates. “Saudisation forced me to return to Kerala after the government refused to renew residence permit for categories in the nationalisation programme,” Anil Gopinath - a Gulf returnee - told The Hindu.

As part of the Saudi Vision 2030 reform programme, private companies and businesses must employ Saudi Arabia nationals by replacing foreign workers. Unemployment in Saudi Arabia exceeded 15 per cent in 2020.

However, the rigorous Saudisation programme led to the creation of 400,000 jobs in 2021 and the Saudi government intends to increase the rate of its nationals in economic participation by 60 per cent in 2030.

Source: The Hindu

(Quotes via original reporting)