SR 20,000 fine on each expatriate working in the Gold Shops

As we are quite aware of Saudization policy of the Kingdom of Saudi Arabia. Following this policy, it was reported that Gold and jewelry shops that employ expatriates rather Saudi citizen will be required to pay a fine of SR20,000 for each expat worker.

This law will be applied after December 3 when 100% Saudizationh of the sector will come into force. The Saudi Arabian Ministry of Labor also planning to appoint inspector that will conduct surprise or private inspections in every market and mall. They will be allowed to punish the violators for going against the law.[irp]

December 3 is the last deadline given to all the shopkeepers and market’s owner. Khaled Aba Al-Khail Spokesman of the Ministry of Labor and Social Development said that the field inspectors will track down the violators and impose heavy fines on them.

According to a recent report, it was said that there are more than 6,000 gold and jewelry shops in the Kingdom of Saudi Arabia that employs more than 25,000 workers including a large number of expatriates. Some of the shops are owned by foreign investors.

 Members of the precious metal and stone committee at the Council of Saudi Chamber have stated their reservation over the success of Saudization in the sector. There are many shops in Saudi Arabia that are in the name of Saudi’s but actually, they are owned and run by expatriates. While some of the foreigners have entered into partnership business with the Saudi’s.

Abdul Mohsin Al-Namir, a member of the committee mentioned a shop that was run by an expat in the name of Saudi and said all we need is to fight Tasattur or cover-up our business. Tasattur is a term used in Saudi Arabia for those Expatriates who do business in the name of Saudis.

He talked to Al-Madina Arabic newspaper explaining that the success of Saudization depends on the success of fighting corruption. A large number of the owners of these gold and jewelry shops and showroom are mostly foreigners.

He put forward a point about helping the Saudi’s who invested their money in tasattur business and asked the Ministry of Labor to study the failure of Saudization and demanded enough time to the shops to deal with the reason that has prevented 100 percent Saudization of the sector for the last 16 years.

He related that we have deep point to think that the number of Saudi employees is decreasing day by day and the expatriate workers are increasing and they are trying to keep the Saudi away from the sector just to maintain their dominance.

Moreover, Saudi employees are forced to work long hour affecting their social and family commitments. They are given very low wages and forced to leave the job at gold and jewelry shops and showrooms. They usually complain that they cannot afford or maintain the expenses of their family at very low salary.

On the other hand, foreigners who leave their country for earning money easily accept the job at very low salary. Abdul Ghani al-Muhanna, another member of the committee hoped that the ministry’s full-scale Saudization will save the sector from tasattur.

Saudi Authorities are taking a good step to help the Saudi unemployed people to get a good paying job.  It will improve the economy of the country and will help in the progress and development of the country.

Source: Saudi Gazette

Get Latest Updates: You can join our WhatsApp Group to get the latest updates and news from the website.