Car rental offices to pay SR20,000 fine for each expat staff

Inspection of car rental offices will be intensified from next week to check violations. — File photo

Saudi Gazette report

JEDDAH — All 650 car rental offices in the Kingdom have been informed about the decision to Saudize jobs otherwise they will be fined SR20,000 for each expatiate worker.

The Ministry of Labor and Social Development warned that the fine will be increased if the same expatriate worker is found again in the office.

The Saudization of jobs at car rental offices will come into effect on Sunday (March 18).

The jobs to be immediately nationalized include accounts, supervision, sales, delivery and return.

The ministry had been providing support to Saudis through training and rehabilitation.

It is also extending technical and financial support to young Saudi men and women wishing to start their own businesses.

The ministry said inspection visits will be intensified and fines will be imposed from next week in collaboration with the Ministry of Commerce and Investment, the municipalities and the police.

Bandar Al-Jabri, chairman of the transport committee of the Eastern Province Chamber of Commerce and Industry (EPCCI) said car rental offices with five or more branches will have to reduce two or three to cut cost.

Jabri expected the offices to increase car rental prices in view of the current changes in the market including the increase in oil prices, electricity tariff and water in addition to the rising costs of maintenance and the high price of spare parts.

Deputy chairman of the National Transport Committee Saeed Al-Basmi said the sector has already implemented the decision and that a large chunk of its jobs is already nationalized.

He said the volume of investments in the sector is more than SR500 million.