The Ministry of Labor is doing the right thing by cracking down on tasattur businesses – small retail companies where Saudis allow foreigners to use their names to run firms in exchange for some of the profits. In Jeddah alone there are an estimated 120,000 such small enterprises. Now multiply this number by the big cities in the country. Then consider how many expats are working at these companies and then add family members and friends who are recruited to work at these businesses, often being employed under the radar. Then also factor in the number of Saudis involved in such businesses, and you will get a sense of the size of the problem. The ministry wants to enforce more stringent registration methods so that there is greater regulation of this sector. Why is this important? It ensures that the government gets a true picture of the problem. It is one thing extrapolating figures, but it is something completely different to have the hard facts. Government will also get a better idea of the number of illegal foreigners in the country and also clamp down on Saudis who are involved in this underhand activity. This is just one part of the Nitaqat or Saudization program introduced last month by the government. It should not be seen as an attempt to penalize foreigners. Government is equally concerned about Saudi nationals involved in this behavior, which goes against the labor laws in this country and deprives fellow nationals of employment. As we have said many times before in this space, it is absolutely vital for the government to create jobs for its young, rapidly growing population. The government has gone a step further by giving these companies a grace period to rectify their status. There is no doubt that some expats may have to go home, but many of those working here illegally may get a chance to legalize their status. It is in the interest of expats to cooperate fully with this initiative, especially with calls from government to help train Saudis to work in the retail sector. Many expatriate business people and professionals, as we reported yesterday, are fully behind the Nitaqat program and are keen to train young Saudis to take over the running of many businesses in the country. It is only through cooperation between government, expats and nationals that the country's labor market can be transformed and absorb millions of jobseekers. __
