SAUDI ARABIA

Inability to Saudize gold shops blamed on tasattur

October 18, 2017



Saudi Gazette report

MADINAH
– Members of the Precious Mineral Committee at the Council of Saudi Chambers said the reason why gold shops have not been completely Saudized, although the decision was issued 16 years ago, is tasattur, which refers to the illegal understanding whereby Saudis permit foreigners to manage businesses in their names in return for a stake in the profits, Al-Madina daily reported.

Another reason is the fierce competition between expatriate workers to work for jewelry shops and lack of interest on the part of Saudis to work in such jobs which pay low salary and require long working hours.

Abdulghani Al-Mahna, member of the committee, said the latest calls by the Ministry of Labor to enforce Saudization in the gold shops is the last chance for Saudis who want to work for the shops. It is also the last chance to eradicate tasattur practices, especially in light of the decrease in number of Saudis who work in the shops. The Eastern Province has seen a low percentage of Saudization in gold shops because expatriate workers who control the market drive Saudis away.

“Saudis tend not to continue in such jobs because the pay is low compared with the salaries given to expatriate workers. Besides, Saudis have to work long hours and under constant pressure. Gold shop owners claim that most Saudis are not interested to work long hours and have to hire expatriate workers instead to fill the shortage. But this is not true. No incentives are offered to Saudis,” he said.

There is a fierce competition between the sons of an Arab man and the sons of an Asian investor who both control the market and work together to drive Saudis away. Both of them are trying to run as many gold stores as possible. The sons of the Asian investor run stores that transfer remittances to their home countries.

For a successful implementation of the decision, the ministry needs to take drastic Saudization measures and limit the control of expatriate workers over the market. Around 40 years ago, the gold shops were fully owned and run by Saudis.

Muhammad Azouz, a member of the committee, said 25 percent of the retail gold shops won’t be able to comply with the decision while big shops that have branches will not be able to implement the decision in a short time. The Saudization percentage at gold shops has declined to 50 percent.

“The biggest challenge here is the inability of the ministry to convince Saudis to stay in the jobs. In fact, 75 percent of Saudis quit this job quickly for several reasons. For example, some of them find a job in the public sector. The majority of shops face difficulty dealing with the large number of Saudis who quit shortly after being hired. These shops look for permanent workers. The salaries are not less than SR5,000,” he said.


October 18, 2017
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