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

      Published on Sunday, 18 February , 2018      30 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 :
31 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



Air Arabia Egypt Launches Direct Flights Between Sohag and Riyadh
Saudi Arabia Saudi Arabia news

Air Arabia Egypt Launches Direct Flights Between Sohag and Riyadh

Air Arabia Egypt has launched a direct flight from Sohag in Egypt to Saudi Arabia’s capital city, Riyadh. Roundtrip…

Saudi Arabia new rules

Property prices continue to fall in key UAE markets

UAE banks invest Dh87 billion in Saudi Arabia, Egypt

King Salman receives dignitaries in Riyadh King

King Salman receives dignitaries in Riyadh

The Kingdom’s Grand Mufti Sheikh Abdul Aziz Al-Asheikh, senior scholars, ministers and a group of citizens called on…

Saudi King Salman reshapes country’s political and security affairs council King

Saudi King Salman reshapes country’s political and security affairs council

Saudi King Salman on Thursday announced a new list of appointees to key positions in the country’s political…

Saudi Arabia’s Prince Talal bin Abdulaziz has died King

Saudi Arabia’s Prince Talal bin Abdulaziz has died

Saudi Arabia’s Prince Talal bin Abdulaziz passed away on Saturday, family members and Saudi media said on Twitter.…

Bahraini crown prince meets Saudi officials in Riyadh King

Bahraini crown prince meets Saudi officials in Riyadh

Bahrain Crown Prince Salman bin Hamad Al-Khalifa held talks with Saudi officials in Riyadh this week. His visit…

GULF TV

Popular in GULF TV

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

1836 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