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15% of car rental shops fail due to labor violations
Published in The Saudi Gazette on 13 - 11 - 2016

Experts and specialists at the car rental sector warned of the spread of the covering up phenomenon and the reluctance of investors to enter the market, due to the limited Saudi youth working in administrative tasks, blurry rights of traders recovery mechanism, in addition to bureaucratic regulations, and the lack of systems, as well as the theft of some spare parts, and random pricing of traffic fines for merchants.
The experts pointed out that expats dominate the shops for car rental, which amount to about 700 shops with investments estimated at about SR70 billion despite the decision to Saudize the sector 100 percent several years ago, pointing to about 15 percent of those stores accumulating losses and the complaints are not solved yet.
Al-Madina daily noticed the reluctance of Saudi youth to work in car rentals and the spread of covering up for expatriate workers, whether owners or employees of shops.
The head of the National Commission for Transportation at the Saudi Council of Saudi Chambers, Said Albassami said, «The young Saudis at car rental shops have administrative roles only.» He pointed to the difficulty of letting go of foreign workers in the sector because of carrying out logistical issues, and lack of young Saudis to work in the private sector, which extends its working hours for about 8 hours a day.
He added that investors are reluctant to invest in the sector because of the inability to ensure merchant›s rights in case of infringement or damages from renters, because of bureaucratic regulations and resolutions, as well as the escape of some of the automotive renters, and financial penalties as a result of violations, in addition to the use of illegal vehicles, and having random side pricing and minimization compared to neighboring countries.
Albassami explained that the number of car in rental stores is up to 700 replaced with an estimated investment of SR70 billion indicating that the market saw out about 15 percent of those stores accumulating losses and the issues and complaints have not resolved yet.
Abdullah Olayan, director of the Ministry of Labor branch in Makkah, said: The car rental industry is suffering from Saudization phantom despite a decision resettled several years ago by 100 percent.
He indicated that the Saudi youth is able to prove their worth in the sector because of their qualifications and competitive abilities. Chairman of the Chamber of Automotive in the Eastern Province, Hani Afaleq said:
The localization of the automotive sector contributes to the involvement of young people in the work environment, and to suits their interests.
He pointed out that the Saudi youth need to develop the skills of sales and marketing, and gain experience to master the work.


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