Saudis need extra training 'to replace expats'

June 2, 2013

Saudis__expats

Jeddah, Jun 2: The Labor Ministry has made it mandatory for any organization, whether schools, companies or offices, to reserve vacancies in 19 job categories for only Saudis.

These are: Executive HR manager, HR manager, labor affairs manager, staff relations manager, staff relations specialist, staff relations clerk, recruitment clerk, staff affairs clerk, attendance control clerk, receptionist (general), hotel receptionist, health receptionist, claims clerk, treasury secretary, security, broker, key specialist, customs broker and female sales specialists (women only).

Arab News spoke with CEOs, authorities of schools and companies who confirmed that the 19 positions classified above are related to human resources, customer services, health management, accounts, clearing and forwarding agents and, of course, women-sensitive sales areas.

Mohamed H. Zakaria, CEO and general manager of Saudi Steel Profile Company, said that the 19 job categories that are related to the HR department and reserved for Saudi nationals can easily be short-listed or filtered down to three positions. Only companies like Saudi Aramco, Sabic, SEC, or the STC can employ all categories.

“I think the best way to implement Saudization is not through passing legislation but through the sincere and active participation of the private sector and expatriates. The Labor Ministry should seek the help of expatriates to train Saudis to replace them,” he said.

He also said with a per capita income of more than $ 31,000, Saudi Arabia is ahead of many European countries and with 262 billion barrel of oil reserves (excluding natural gas, metals and minerals), each Saudi owns more than a million dollar’s worth of oil.

Forcing Saudis into the private sector will be a temporary way out. Secondly, hiring extra Saudis and putting them on the payroll will throw many private companies out of business, as it will take at least three to five years to train and replace the expatriate work force, especially at the lower and mid levels.

“In fact, most Saudis approaching us for a job don’t even know what job they are seeking and a lot of job-seekers, including Saudis and non-Saudis with even five years of work experience don’t realize that they fall in the entry-level category,” he explained.

Padma Hariharan, director and head of Novel International Group of Institutions, said that these positions are sensitive and organizations, including the government sector, should ensure that the employees they are hiring are sensitive to the needs of the organization, as all positions are ultimately for Saudis only.

She said the area of concern is improvement of communication in English. As the Kingdom has opened its doors to global investment and is encouraging tourism in a big way, it is mandatory for the Saudis employed to effectively communicate in English.

“Training and qualifications are absolutely mandatory to secure the job. The Ministry of Education (MoE) clearly states that we need to appoint Saudi teachers to teach Islamic education, Qur’an, Saudi history and geography and Arabic. Moreover, the Saudi faculty needs graduates in its field. In order to enhance the quality of the work force and the work environment, I would strongly recommend that the government set up a skilled work force center or hub for training professionals in their respective areas,” she added.

Yosef Al Zanbagi, HR manager of MICE Arabia Group for Exhibitions and Conferences, said the royal order has made it mandatory for Saudis to be hired for management positions. Besides, the posts at the lower end of the scale do not require high qualifications. This is why Saudis prefer these posts, thereby easing the problem of unemployment among the citizens.

“Yes, of course training is important. Basically Saudi employees need an educational qualification that matches the position. They then need three months of on-the-job training. In addition to IT knowledge, English, and HR and Management training sessions, the companies usually change the job title or hire expatriates in positions lower than the management level but they perform the same tasks. And some companies do not need these positions. However, after the last royal order there will be no room to circumvent these issues,” he added.

Dr. Hasan Zaman, CEO of Midrar enterprises, said Saudi employers have become more accepting of the fact that hiring foreign labor is not a long term solution.

“Many organizations have started taking steps to send their employees for training and have not used monetary incentives to encourage them. These steps will ensure that a skilled workforce is employed in their organizations,” he said.

The 2013 labor policy has eradicated doubts about the new laws to be implemented. With the exception of posts exclusively marked for Saudis, all other positions for physicians, engineers, nurses, educators, designers, administrators, and even the greater spectrum of technicians, are free to be occupied by non-Saudis.

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News Network
May 11,2020

May 11: Saudi Arabia will triple its value-added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus.

Historic oil output cuts agreed by Riyadh and other major producers have given only limited support to prices after they sank on oversupply caused by a war for petroleum market share between the kingdom and its fellow oil titan Russia.

Saudi Arabia, the world's largest oil exporter, is also being hit hard by measures to fight the new coronavirus, which are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.

"The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1," Finance Minister Mohammed al-Jadaan said in a statement reported by the state news agency. "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible."

The austerity measures come after the kingdom posted a $9 billion budget deficit in the first quarter.

The minister said non-oil revenues were affected by the suspension and decline in economic activity, while spending had risen due to unplanned strains on the healthcare sector and the initiatives taken to support the economy.

"All these challenges have cut state revenues, pressured public finances to a level that is hard to deal with going forward without affecting the overall economy in the medium to long term, which requires more spending cuts and measures to support non-oil revenues stability," he added.

The government has cancelled and put on hold some operating and capital expenditures for some government agencies, and cut allocations for some reform initiatives and projects worth a total 100 billion riyals ($26.6 billion), the statement said.

Central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.

"The reforms are positive from a fiscal side as greater adjustment is essential. However, the tripling of VAT is unlikely to help that much in 2020 revenue wise with the expected fall in consumption," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

She said she kept unchanged her deficit forecast of 16.3% of GDP for this year, which already factors in a greater than previously announced spending cut.

About 1.5 million Saudis are employed in the government sector, according to official figures released in December.

In 2018, Saudi Arabia's King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them for the rising living costs after the government hiked domestic gas prices and introduced value-added tax.

DIFFICULT TIMES

A committee has been formed to study all financial benefits paid to public sector employees and contractors, and will submit recommendations within 30 days, the statement said.

In late 2015, when oil prices fell from record highs, the kingdom slashed lavish bonuses, overtime payments and other benefits once considered routine perks in the public sector.

In a country without elections and with political legitimacy resting partly on distribution of oil revenue, the ability of citizens to adapt to such reforms is crucial for stability.

"Tripling the VAT will test the limits of the balance between revenues and consumption as the economy dives into a deep recession. The move will impact consumption and could also lower the expected revenues," said John Sfakianakis, a Gulf expert at the University of Cambridge.

"These are pro-austerity and pro-revenue moves rather than pro-growth ones," he said.

Hasnain Malik, head of equity strategy at Tellimer, said the VAT rise could bring about $24-$26.5 billion in additional non-oil fiscal revenue. The rise would hit consumer spending further but was a needed step towards fiscal sustainability, he said.

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News Network
May 19,2020

Dubai, May 19: In a heart-warming decision to reunite families that have been split by anti-Covid travel restrictions, the UAE has announced that residents with valid visas stranded outside the country can return from June 1.

The Ministry of Foreign Affairs and International Cooperation and the Federal Authority for Identity and Citizenship said they will begin the process on Monday, June 1, by allowing the return of those residency holders currently stranded outside the country who have relatives in the UAE. Residents who meet this criteria must apply for a Resident Entry Permit on smartservices.ica.gov.ae.

The ministry and the authority said the decision was taken to reunite families that have been affected by the anti-coronavirus measures taken due to the exceptional circumstances.

"The UAE is keen to facilitate the procedures for holders of UAE residency visas who are stuck outside the country and reunite them with their families who were affected by the precautionary measures taken by the country in light of the current exceptional circumstances to combat Covid-19," the federal authorities were quoted by state news agency Wam.

Hundreds of UAE residents are currently stuck abroad and are separated from their families due to the unexpected freeze on air travel imposed by many countries as precautionary measures to curb the spread of coronavirus.

The #BringBackUAEresidents hashtag was trending on Twitter on Monday as several residents and families requested the government to expedite their return to the UAE.

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News Network
July 10,2020

Dubai, Jul 10: Saudi Minister of Culture Prince Badr bin Abdullah bin Farhan has appointed Dina Amin as CEO of the Visual Arts Commission.

She will take the lead in implementing the ministry’s vision and directions in promoting and developing visual arts in the Kingdom and empowering practitioners in the field.

Amin is a leading Saudi specialist in visual arts and the international contemporary art field. She gained a bachelor’s degree in art history and architecture from Wellesley College, in the US, and also attended a collaborative program in architecture at Massachusetts Institute of Technology.

During her career, spanning more than two decades, she has held senior positions in prominent international arts companies, including most recently Phillips, a global auction house for art, design, watches, jewels, and more.

She has also worked at Christie’s, one of the world’s most famous auction houses, employed in senior roles at the company’s international offices including New York, Dubai, and London.

The Visual Arts Commission is one of 11 new cultural bodies recently launched by the Ministry of Culture in line with the Saudi Vision 2030 reform plan to manage the empowerment and development of the Kingdom’s cultural sector. The commission will be responsible for managing and developing the visual arts sector to help achieve the ministry’s goals.

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