Restrictions phased in on selected professions for Saudis
Saudi Arabia’s decision to restrict 43 professions in the retail sector to Saudis will take effect tomorrow as part of the government’s effort to reduce unemployment among its young population.
The labour ministry will restrict employment in 12 retail sub-sectors to Saudis over three phases, according to the Saudi Ministry of Labour and Social Development. More than 40 retail professions including in cars, clothes and furniture will be off-limits to expats.
“Those who violate the decision that aims to replace foreign workers with Saudi workers in these activities will be subject to penalties mentioned in the law,” the ministry said on its website.
Saudi Arabia is targeting the retail sector to tackle unemployment, which currently stands at 12.8 per cent, underscoring the challenge to create jobs as the economy recovers from the worst slowdown since the 2008 global financial crisis.
Starting yesterday, more professions in other sub-sectors were scheduled to be prohibited to expatriates including in shops selling watches and electrical appliances, according to the labour ministry.
Next year, from January 7 onwards, 44 designations within five other sub-sectors will be open to exclusively to Saudis including in medical supplies and equipment, vehicle parts, building and construction materials, carpets, bikes and confectionery shops.
“The move comes as part of the Ministry of Labour and Social Development’s efforts to empower Saudi men and women in the workforce and raise their participation in the private sector,” the ministry said.
Job creation is a key priority for the kingdom’s Crown Prince Mohammed bin Salman, who is spearheading the country’s plan to wean the economy off its reliance on oil.
Under the National Transformation Plan, the government is aiming to reduce unemployment of Saudis to 9 per cent by 2020, according to the NTP website.
Saudi is also planning to increase women’s participation in the labour force from 22 per cent to 30 per cent over the next 12 years
With two thirds of Saudis currently employed by the public sector, the government is targeting job creation in the private sector.