JEDDAH: The first stage of Saudization of the telecommunication sector has ended today. In the first phase, 50 percent Saudi employment in the telecommunication shops had to be achieved.
Friday also marks the beginning of the second stage with the aim of 100 percent Saudi employment in the telecommunication sector.
Arab News went to one of the biggest telecommunication markets in Jeddah in Khaled bin Waleed Street to see the effect of the Saudization deadline on the market.
At first glance, approximately 30 to 40 percent of the shops were not open, and the ones that were open were crammed with merchandise but not with customers.
“There is even more merchandise in the warehouse, but there are not as many customers as we used to have,” said a Yemeni salesman, Abu Shehab.
“Most of our customers are small telecommunication shops, and many of them are not sure if they will find Saudi workers. Thus, the small shops are not sure if they will stay open or not.” At the same shop where Abu Shehab works, there were two Saudi workers. One of the two Saudi workers, Saleh, said: “Working here is much easier than I expected; it is just organizing merchandise, counting it and of course selling it.”
At another store owned by a woman whose two sons, Rashad and Waleed, work alongside their father, Sharaf, business seemed to be as usual.
“Even if some of our regular customers have gone, there have been new customers coming in,” said Sharaf. “Many are Saudis who are purchasing merchandise for their newly-opened shops.”
His son Rashad said: “Fifty or 60 percent of the shops may close after Friday, but these stores will sooner or later be replaced by others.”
Abdullah Al-Qahtani, one of the customers at a different shop, was shopping for his newly-opened shop. “The Saudization of the telecommunication sector is a huge opportunity for Saudis as it is one of the most profitable sectors in the Kingdom,” he said.
“When such a profitable sector becomes fully Saudized, it is clear that most of the money spent within the sector will not be transferred abroad but will go back into the Saudi economy which will help with the prosperity of the Kingdom,” he said.
The Ministry of Labor and Social Development has announced that an extension to the first stage will not be given and inspections will start on Sunday.
The ministry and the Human Resources Development Fund (HRDF) and other institutions have been training a large number of Saudi men and women to work in the telecommunication sector.
In addition, the ministry and the HRDF also provide financial assistance to trainees wanting to start their own telecommunication business.
Localization of mobile shops delights Saudis
Localization of mobile shops delights Saudis
