Saudization is a process through which certain sectors of business in the Kingdom of Saudi Arabia are employed with almost all Saudi employees or workers. This is done in a bid to tackle the unemployment rates of the local population in the Kingdom of Saudi Arabia. The Ministry of Transportation the Kingdom of Saudi Arabia is now considering the option of allowing the Saudi nationals to use their own personal vehicles as taxis or cabs instead of making it compulsory for the Saudi nationals to have separately registered taxis for this sole purpose.[irp]
This will go on to encourage a huge number of Saudis to enter into the taxi or cab business, which will in return boost the rates at which the transport sector is being Saudized. This was stated by a source in the Ministry of Transport to the local media in Saudi Arabia. Currently, it is illegal for anybody to use their private vehicles as commercial cabs or taxis and a relaxation of this rule will allow the employees to boost amongst the nationals.
The sources have stated that there are popular firms in the transport of taxi business which could also be issued licenses and could be used as a medium in between the passengers and the Saudi cabbies. It is quite possible if and when the taxi companies comply with the new rules or standards which are set by the Ministry of Transport.
There are presently seven companies in total that are working in this field who are meeting all of the regulations and requirements and is being viewed in a positive light as it has caused a reduction in the congestion on the roads. The Ministry of Labor and the Ministry of Transport has reached an agreement earlier last month that the public driver’s visa will not be issued, in a bid to ensure that the sector goes through Saudization properly.
The Ministry of Transport and Ministry of Labor have agreed that there should be a study conducted in order to properly determine the needs of the Saudi market. They have also stated that the car rental sector should be also categorized as a sort of transport activity rather than a retail or wholesale business. There are several other measures which have been agreed upon by the Ministry of Transport as well as the Ministry of Labor which includes the fact that the names of all these transport activities must be standardized amongst the two ministries. This will cover the transport of goods and transport of passengers intercity, between cities as well as international transportation of goods and people.[irp]
This new plan by the Ministry of Labor and Ministry of Transport will be essential and will play a pivotal role in the Saudization of the transport sector. There is a need to increase Saudization of the profitable and viable sectors of business in the Kingdom of Saudi Arabia in order to tackle the domestic unemployment.
Source: Arab News