Telecom sector warned as Saudization deadline nears

Sultan Al-Sughair

DAMMAM: Investors in the telecom sector, including shops dealing in sales, repairs and accessories of mobile phones, have been warned that failure to meet the 50 percent Saudi quota by the June 6 deadline will mean a fine of SR20,000.

Issuing the warning, Khaled Abalkhail, spokesman of the Ministry of Labor and Social Development, said the decision aims at providing jobs to Saudi men and women and combating trade concealment practices.
The ministry has set June 6 as the deadline for 50 percent Saudization of the sector in the first stage and Sept. 2 for 100 percent in the second and final stage, said Abalkhail.
He confirmed that the Saudization plan has been implemented in cooperation with the ministries of commerce and investment, municipal and rural affairs, and communications and information technology, with the participation of security forces.
"Employers have an opportunity to develop their business in this sector, as the ministries concerned have provided all facilities to them through funding and training over the past months," he said.
He said that all information related to the telecom sector Saudization plan is available on the website: http://www.sotm.info/
The Ministry of Labor and Social Development will strictly apply the penalties prescribed in Article 36 of the Saudi Labor Law, which prohibits the employer from recruiting foreign workers in professions allocated for Saudis after the deadlines end.
The Saudi Credit and Savings Bank (SCSB) recently announced that it would finance projects by young male and female Saudi entrepreneurs in the telecommunications sector up to SR200,000.
Abdullah Al-Namlah, the general manger of the SCSB, said the decision to restrict work in sales and maintenance of mobile phones and accessories to Saudis will promote the development of national cadres, support competitiveness in this important activity of the retail sector, along with providing high returns for the citizens, and keeping the capital of this sector within the Kingdom.