Thousands of small stores and service outlets run by guest workers face closure under new Ministry of Labor measures to combat “tasattur” – the illegal understanding whereby Saudis permit foreigners to manage businesses in their names in return for a stake in the profits. The move, which a source at the Ministry of Labor said, will affect over 120,000 commercial businesses in Jeddah alone, is part of the ministry's 10-point program for the employment of Saudi youth and targets a sector in which 85 percent of jobs are taken by guest workers. “'Tasattur' businesses have virtually a complete monopoly on the retail sector,” the source told Saudi Gazette. “Shops, stores and outlets operating under tasattur are rife across the country, and many guest workers have expanded their tasattur businesses by bringing in relatives, thereby depriving Saudi nationals of their right to work in their own country.” Under the measures, small commercial businesses which previously required only municipality licenses to operate will now have to obtain the same chamber of commerce commercial registers as required of larger operations. Dedicated departments will be set up at chambers of commerce to ensure compliance and specific sectors at the Ministry of Interior will also be involved in the anti-tasattur fight. The authorities will, however, allow a period of grace for businesses to legalize their status and meet Saudization – or “nationalization” in the new parlance of the ministry requirements. “We would greatly appreciate it if guest workers help Saudis and the government by assisting in the training of Saudi staff,” the source said. “Both Saudis and guest workers involved in tassatur businesses can request help from the relevant departments at their chambers of commerce.” __
