Shutting down cell phone stores is not a solution

By Mazen Balilah In March 2016, the former labor minister issued a decision that only Saudis should be permitted to run mobile phone stores. The decision gave the stores six months to comply and replace expatriate workers with Saudis. Because of this decision, 10 percent of the stores shut due to their failure to meet the Saudization requirements that the Ministry of Labor had imposed. The ministry needs to reconsider the decision so that business and the local economy are not negatively affected. The ministry has so far carried out 14,025 inspections of cell phone stores all over the Kingdom to ensure that they are completely run by young Saudi men and women. Over 1,833 violations have been registered and 1,671 violators have been referred to the pertinent committee. Moreover, around 1,146 stores were closed while 162 stores were given a notice to comply with the ministry’s regulations. Around 12,482 stores have complied with the Saudization process. The Ministry of Labor has more than once said that it will take strict measures against violators who try to circumvent the law. The inspection visits are carried out in cooperation with the Ministry of Interior, the Ministry of Municipal and Rural Affairs, the Ministry of Commerce and Investment and the Ministry of Communications and Information Technology. The stores that have failed to comply should not have been shut down because closing a business is not the solution in introducing Saudization. Moreover, this negatively impacts the local economy. The Ministry of Labor should help set up big companies that can acquire small businesses that are facing difficulty to comply. Acquisition helps the ministry achieve Saudization without having to shut down a business that does not comply. I am sure the ministry, together with other pertinent government agencies, can find better solutions that are in line with Vision 2030 in order to diversify the economy and create more job opportunities.