SAUDI ARABIA

The field is now open for Saudis, say economists

March 03, 2018

Saudi Gazette report

JEDDAH – Economic experts believe that the exit of many illegal commercial operations from the scene due to the changes in labor market regulations would open up opportunities for young Saudis to expand their trade and investment activities.

They say the current moves aim to transform Saudis from being mere employees to manufacturers and owners of commercial projects. The strict regulations adopted by the Ministry of Labor and Social Development have paved the way for Saudis to enter free trade and fight all kinds of commercial fraud, which the experts estimated to be worth SR200 billion annually.

Head of the Commercial Centers Committee Mohammed Alawi said, "The field is now open to the Saudi youth thanks to the new regulations. They can practice free trade and earn good profits and become self-reliant, instead of working for a fixed salary."

Professor of Economics at King Abdulaziz University Bandar Al-Jaid expects that almost 30 percent of investors would leave the market in the second half of this year. He said most of them were owners of small and medium enterprises that operate through various fraudulent arrangements under what is known as tasattur (commercial cover-up).

He said all the latest measures adopted by the authorities to combat trade violations would reduce the flight of capital outside the country while increasing local investments, which in turn would create new job opportunities for young Saudis.

Al-Jaid put the annual losses to the national economy due to commercial fraud at SR200 billion.

Economist Dr. Ehsan Buhulaiga said people would now recalculate the expenditures and returns from each commercial venture in order to retrench surplus expatriate labor.

This will play a major role in putting an end to fake Saudization by hiring ghost workers, he said.

Fahd Al-Buqami, an investor, said the ministry did not take into account the exit of workers mid-term while issuing the collective bill for the payment of expat levy for the entire year.

He called for canceling or delaying the application of these invoices, especially on small and medium enterprises.

He underlined need to take into account the decline in economic activity and the high costs of energy and fuel, due to which many shops are closing down. He added that many foreign workers were refusing to bear the costs of the new fees.


March 03, 2018
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