JEDDAH — Around 50 percent of mobile shops are up for sale and another 20 percent are shutting down in reaction to the move for total Saudization in the telecommunication sector, Al-Madinah newspaper reported on Sunday. Majed Abdullah, a mobile shop owner, said the decision to Saudize the telecommunication sector will greatly harm many businesses. "Saudi employees require salaries 30 percent higher than their expatriate counterparts. The Ministry of Labor and Social Development wants to Saudize the telecommunication sector by 50 percent starting Ramadan. The drastic change will be detrimental to many businesses in the sector," said Abdullah. He added the ministry did not assess the situation of retail mobile shops separately from telecommunication companies. "Telecommunication companies attract Saudi employees by giving benefits such as weekly holidays, high salaries and flexible shifts. Mobile shops are a part of the telecommunication industry but they cannot afford to offer the same benefits as major companies in the sector do," said Abdullah. An employee at a mobile shop said the ministry's quick decision to Saudize the sector has led many investors to back away from small businesses. "Many shops had to close down as they were unable to compete with big companies. The minimum wage for a Saudi working in a mobile shop is SR4,000 while the minimum wage for a non-Saudi is SR2,500. Moreover, most Saudis refuse to work double shifts," said the employee. He said companies can provide medical insurance to their Saudi employees and they can provide a starting salary of SR5,000 with a weekly holiday. Ministry of Labor and Social Development spokesman Khalid Abalkhail said the ministry has launched its campaign to ensure that all mobile shops and telecommunication companies adhere to the Saudization plan. "The campaign will cover all cities and townships throughout the Kingdom. We have appointed adequate number of inspection teams," he said. A four-member ministerial committee comprising representatives of the ministries of labor and social development, commerce and investment, telecommunications and information technology, and municipal and rural affairs will follow up the move. Officials of these ministries will meet regularly to coordinate their activities for implementing the directive. "Violating the regulations can lead for the company or shop to be shut down or slapped with a minimum fine of SR20,000. Citizens may report to the ministry if they see any violations by visiting the website www.rasd.ma3an.gov.sa or by calling customer service 19911. The ministry will record the reported violations and verify the claims," said Abalkhail.
