DAMMAM, 26 April — Authorities in the Eastern Province have issued directives to the management of supermarkets and shopping centers banning employment of foreign workers in their fruit and vegetable sections. They warned that if the directives were not implemented then there would be harsh punitive measures and deportation of expatriates manning the sections.
The move came as part of a plan to Saudize all jobs in vegetable and fruit trade. The authorities had earlier issued instructions, applicable to both fruit and vegetable shops and markets, to employ only Saudi nationals.
As a result of the latest directives many large supermarkets have already started employing Saudi nationals and placing expatriate employees elsewhere on the premises. However, small shopping centers are closing down their fruit and vegetable sections as they think it would not be a profitable proposition any more.
“Normally the turnover of vegetables and fruits sale is not all that high, compared with other fast moving products,” said Saeed A. Al-Shahrani who owns three shopping centers in Alkhobar. “We normally employ a Bangladeshi or Indian and pay between SR700 and SR1,000 every month. This employee not only looks after vegetable section but the entire center,” he said adding that if they employed a Saudi he would demand a higher salary and would be confined to the vegetable section.
The authorities have already started conducting raids and a few expatriates from shopping centers in Dammam and Al-Khobar were detained. They were released after their sponsors gave written assurances that they would not man the vegetable sections any more.
The authorities have also intensified raids on small shopping centers. A few months ago it was announced that shopping centers which are less than 400 square meters in area should employ only Saudi nationals. Initially the authorities raided several outlets and measured the shops and took appropriate action, but for the past few weeks they have been relaxed. However, once again they have intensified the drive.
The owners of these small shopping centers have expressed frustration over the move. “This way small businesses will collapse while the big businesses will flourish further,” said Ahmad Ali Al-Dosary, owner of a shopping center in Dammam. The authorities should take into consideration the cost factor and the profitability of such small shops.
“Let’s face the fact. A Saudi employee costs us more than double an expatriate worker,” he said. Logically the big supermarkets should be asked to increase the percentage of their Saudi employees as they have a staff ranging between 50 to 200, he said.
“We have one or two employees at our shopping centers. How much difference will it make if they are expatriates or Saudis?” Al-Dosary asked.
