Private schools blame Saudization for their financial woes

February 4, 2013

saudiRiyadh, Feb 4: About 13 private schools in Jeddah laid off staff and students after experiencing significant financial hardships following the decision by the Ministry of Labor to raise minimum wage for Saudis teachers, school officials said.

The closure of private schools will increase public education costs on the government.

“Private schools save the government SR12 billion annually, given the fact one public education pupil costs the government about SR 20,000 a year,” said Othman Al-Qasabi, chairman of the committee for private schools at Riyadh Chamber of Commerce and Industry.

The Saudization quota required from girls’ schools by the Ministry of Labor led to difficulties and hardships for these schools that had to raise their fees by 50 percent, which was rejected by many parents who drew their offspring out.

Private school Principal Al Zahra Girls’ School Buthaina Al-Ghamdi said the minimum wage decision has affected the school in terms of having to bear higher expenses, but not to the extent of closing it.

She said the school did not approve any increase in fees paid by pupils, adding that Saudi teachers needed training on the new developed curriculum.

Pupils of a closed private school would turn to public schools and that means more costs for the government and would also affect the quality of education in terms of having overcrowded classrooms.

“With the increase in the salaries of teachers it is not feasible for private schools that charge a pupil SR 8,000 or less a year to stay open,” Al-Qasabi said. “And with the fact most parents won’t pay more than SR 10, 000, the schools (the ones charging less than SR 8, 000) would close and their pupils would turn to public ones.”

Al-Qasabi, however, believes that increasing teachers’ salaries was a necessity, stressing the importance of incentives and motivation for teachers. Incentives play a major role in the educational process.

He said adding private schools teachers’ salaries are the lowest in Saudi Arabia relative to other jobs. He also called on the government to financially support private schools’ pupils in a way that expands the market, improves quality and reduces costs for the government.

It was reported the National Committee for Private Schools recorded a number of withdrawals from private schools as parents could not afford increased fees and preferred to enroll their children at public schools. Most of the closed schools are girls’.

“Most private schools owners are unable to bear the increase in salary,” said Farida Farsi, chairwoman of the committee for girls’ private schools at Jeddah Chamber of Commerce and Industry. “They are small investors who rent residential buildings (villas) and opened private schools at their neighborhoods as a result of the Ministry of Education’s failure to accommodate all of a neighborhood’s pupils in its (the neighborhood’s) government schools.”

However, schools only have to pay SR 3, 100 of the SR 5,000 minimum wage as the remaining SR 2,500 is paid by the government’s Human Resources Fund.

“Many schools cannot afford the portion they have to pay, which is added to increased costs that are the result of stricter Civil Defense requirements of equipment and systems. The bankruptcy is due to several reasons not only the minimum wage decision. Some owners may have found it is the best solution.”

Malek bin Taleb, head of the national private schools committee, said the majority of private schools for girl closed their doors, while some others for boys will follow.

“Most of these schools will permanently leave the sector in the wake of the decision and the ensued regulations and instructions,” he added.

He said that more private schools will follow, given the Ministry of Education’s committee on increasing fees of private schools’ refrainment from listening to demands by the committee, stressing that the problem seems more explicit at girl’s school, where the required Saudization quota is close to 100 percent compared to boys’ schools.

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Agencies
May 25,2020

Abu Dhabi, May 25: Dusty weather to persist in the UAE on Monday as well with a chance of rainfall in parts of the country, the national Met department reported.

According to the NCM, the weather today will be fair to partly cloudy, with a chance of some convective clouds formation by afternoon - eastward and northward - extending to some internal areas that may be associated with some rainfall.

The weather will get humid by night and Tuesday morning over some coastal areas.

NCM predicts a wet Eid break.

Sharjah Police issued a weather warning as heavy rain flooded roads in Sharjah's Kalba among other areas.

Moderate to fresh winds will gain strength during the day causing blowing dust and sand.

The sea will be slight to moderate in the Arabian Gulf and in Oman Sea.

Earlier on Sunday, a weather alert was issued by authorities as moderate to heavy rain - accompanied with hail - lashed parts of the UAE. A rainbow in Dubai skies cheered up residents, celebrating a unique Eid this year amid the coronavirus Covid-19 pandemic - by mostly staying home.

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Agencies
July 22,2020

Dubai, Jul 22: Saudi Arabia's Minister of Haj and Umrah, Dr Muhammad Saleh Benten, has inspected the facilities and arrangement made for the Haj pilgrims in Makkah and the holy sites.

Speaking to the Saudi Press Agency after the tour, the minister said that the Saudi government has worked out unprecedented plans for the running of this year's Haj, enabling pilgrims to perform their rituals in ease and comfort.
 
This year's Haj, which has been scaled back dramatically to include only around 1,000 Muslim pilgrims as Saudi Arabia battles a coronavirus surge, will begin on July 29, authorities said Monday.

"The comprehensive, foolproof plans will be implemented by the security, health and service agencies. The plans include the provision of the best health services, and the most appropriate crowd control, strictly in line with the precautionary measures and preventive protocols, formulated by the Ministry of Health to ensure full safety of pilgrims from the coronavirus pandemic," Dr Benten said.

According to the Saudi Gazette, Benten emphasised the eagerness of the government of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz of Saudi Arabia and Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud to implement the Haj operation by following the highest health standards and precautionary measures in order to ensure the safety of the pilgrims.

Earlier, the minister inspected the arrangements and facilities for the reception and accommodation of pilgrims at Four Point Hotel in Makkah.

He was briefed by ministry officials with regard to receiving and accommodating pilgrims during the period from 4 to 8 of Dhul Hijjah before leaving for Mina.

Benten also visited the tents in Arafat and the facilities in Muzdalifah.

After that, his inspection tour visited the tent city of Mina, where he viewed one of the towers designated for the housing of pilgrims. 

According to the Saudi Gazette, he was impressed with the services and facilities being arranged for the accommodation and serving of food for the pilgrims.

To complete his visit, the minister watched a visual presentation of the mechanism for providing logistical services for the pilgrims during their travel from accommodation to Jamarat to undertake the stoning ritual.

Meanwhile, Maj. Gen. Mohammed Bin Wasl Al Ahmadi, assistant commander of the Haj security forces for the Grand Mosque and its premises, said on Tuesday that the security plan for this year's pilgrimage prioritises on organisational, security, humanitarian and health aspects.

He said the Haj security forces have installed entry and exit mechanisms from the Grand Mosque during Haj, with passages for pilgrims extending from the southern and western premises of venue as well as special passages around the circumambulation and Saey areas.

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Agencies
March 15,2020

Riyadh, Mar 15: Saudi Aramco on Sunday reported a 20.6 percent drop in its net profit for 2019 due to low oil prices and production levels, the company said in a statement.

These are the first annual results to be announced by the energy giant after its historical $29.4 billion initial public offering and listing on the Saudi Tadawul market last December.

Aramco posted net profits of $88.2 billion last year compared to $111.1 billion in 2018, Monday's statement said.

"The decrease was primarily due to lower crude oil prices and production volumes, coupled with declining refining and chemical margins," it said.

The company also made $1.6 billion of impairment provisions for losses associated with Sadara Chemical Company, an Aramco subsidiary.

"2019 was an exceptional year for Saudi Aramco. Through a variety of circumstances -- some planned and some not -- the world was offered unprecedented insight into Saudi Aramco's agility and resilience," CEO Amin Nasser said.

"Our unique scale, low costs, and resilience came together to deliver both growth and world-leading returns, while also maintaining our position as one of the world's most reliable energy companies," Nasser said.

The earnings for last year are not affected by the coronavirus outbreak or the ongoing price war between Saudi Arabia and Russia that has sent oil prices crashing.

Aramco said it will distribute dividends worth $73.2 billion for 2019 but based on its commitments under the IPO, its dividends for the next five years starting this year will be at least $75 billion.

It said its capital spending last year dropped to $32.8 billion from $35.1 billion in 2018.

The company expects capital spending, which is expenditure on projects, to be between $25 billion and $30 billion this year "in light of current market conditions and recent commodity price volatility."

But it said that capital expenditure for 2021 and beyond is currently under review.

The results were announced amid a price war between Saudi Arabia and Russia after they failed to agree on additional output cuts to support prices dented by the outbreak of the coronavirus pandemic.

"The recent COVID-19 outbreak and its rapid spread illustrate the importance of agility and adaptability in an ever-changing global landscape," Nasser said.

The kingdom said last week Aramco will pump 12.3 million barrels of oil per day, boosting output by at least 2.5 million bpd.

It also announced plans to raise production capacity from 12 million bpd to 13 million bpd.

Forecasts for future crude prices and demand are also bleak.

In its latest monthly report, the Organization of Petroleum Exporting Countries lowered its forecast for global average daily demand by 0.92 million barrels to 99.73 million barrels.

Saudi Arabia is also in the midst of a royal purge that saw King Salman's brother and nephew detained after sources said they were accused of plotting a palace coup to unseat the crown prince, heir to the Saudi throne.

Aramco shares rallied immediately after the listing on December 11, rising by 19 percent to 38 riyals ($10.1) and temporarily lifting the company's valuation above the $2 trillion mark, which was sought by Crown Prince Mohammed bin Salman, Saudi Arabia's de facto ruler.

But as oil prices tumble, Aramco shares have lost 29 percent from its highest point, slipping below the listing price.

On Thursday, Aramco's market value dropped to around $1.55 trillion, but it still remains the world's largest publicly listed company.

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