Saudi work ban could see tens of thousands of expats lose their jobs

      Published on Sunday, 18 February , 2018      80 Views     
Saudi work ban could see tens of thousands of expats lose their jobs

  • Government

A Saudi decree barring foreign workers from 12 retail job roles could see tens of thousands of expats lose their jobs this year, according to a report by Bank of America Merrill Lynch (BofAML).

The decision, announced last month, will affect shops selling watches, eyewear, medical equipment and devices, electrical and electronic appliances, auto parts, building materials, carpets, cars and motorcycles, home and office furniture, children’s clothing and men’s accessories, home kitchenware, confectioneries and pastries.



Firms have until September 2018 to ensure they are compliant, with a fully Saudi workforce.

The Saudi section (titled ‘consumer respite buys time for reforms’) of BofAML’s weekly emerging markets report by Middle East and North Africa economist Jean-Michel Saliba indicated there were 304,865 expat sales workers in the kingdom out of 2.055 million working in trade.

“This may suggest that there are tens of thousands of expatriate jobs that stand to be nationalised by September 2018,” the bank said highlighting there was no specific breakdown of affected workers.

At the same time companies may need to hire an additional 250,000 Saudi nationals to maintain compliance levels following the introduction of the balanced Nitaqat Saudisation scheme in mid-December.

However, these and other Saudisation efforts including the barring of foreigners from car rental offices and gold and jewellery stores are not expected to lead to an exodus of foreign workers or declining economic consumption.

The report indicated the new higher-paid Saudi workforce in these roles would increase costs and reduce margins for companies but could eventually support consumption.

This is because lower-paid expat workers save and remit most of their earnings where as their replacements would spend their wages inside the kingdom.



Foreign remittances out of Saudi Arabia dropped 6.74 per cent last year to $37.7bn, according to local reports.

Keywords:
Category Government | 2018/02/18 latest update at 12:00 AM
Source : | Photocredit :
81 Views
Comments Add comment



Related Articles

The editorial staff of Saudi Arabia Today would like to give all of its readers from Gulf and Saudi Arabia and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Saudi Arabia Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Saudi Arabia, the Gulf and the world.


Sponsored Publications



Saudi Arabia releases Shia cleric Tawfiq Al-Amer
Saudi Arabia Saudi Arabia news

Saudi Arabia releases Shia cleric Tawfiq Al-Amer

Saudi Arabia on Saturday released Shia cleric Tawfiq Al-Amer from prison after he completed his eight-year jail term, Arabi21 reported.…

Saudi Arabia frees detained prince amid international pressure

UAE-based Udrive announces $5mln funding round

Oman tourists expected to rise to 3.5m by 2023

Saudi King Salman calls for tolerance, moderation in Ramadan message King

Saudi King Salman calls for tolerance, moderation in Ramadan message

Saudi Arabia’s King Salman bin Abdulaziz al-Saud on Sunday has called for a message of tolerance and moderation…

King Salman receives Kuwait’s National Assembly Speaker in Riyadh King

King Salman receives Kuwait’s National Assembly Speaker in Riyadh

King Salman received Kuwait’s National Assembly Speaker Marzouq Al-Ghanim and other members of the Assembly at Al-Yamamah Palace…

Saudi Arabia: King Salman welcomes Lavrov to Riyadh Gulf TV, Saudi Arabia

Saudi Arabia: King Salman welcomes Lavrov to Riyadh

King of Saudi Arabia Salman bin Abdulaziz Al-Saud received Russian Foreign Minister Sergei Lavrov and his Russian delegation…

Saudi king meets Russian foreign minister in Riyadh King

Saudi king meets Russian foreign minister in Riyadh

Saudi Arabia’s King Salman met Russian Foreign Minister Sergei Lavrov in Riyadh on Tuesday, footage on the Russian…

GULF TV

Popular in GULF TV

PIRELLI “DREAMING” – THE CAL 2019 making of Full Version | Fashion Channel

2072 Views

A photographic tale of the aspirations of four women and their determination to achieve their goals, each one…

Latest videos in GULF TV

Events

Lifestyle

Culture

Sport

Science & Technology

Government