Saudization efforts beginning to affect expat workforce

     
Contributed by editor   
Friday, 29 October 2004
Some of the manpower recruitment agencies and part of the diplomatic community have expressed that they feel the Saudization drive of the Labor Ministry will impact the availability of workers from South Asia and Arab countries in the long run.

One Saudi company is already feeling the effects of the ministry's crack down, as the labor office in Riyadh has temporarily prevented it from transferring sponsorship of employees hired from another company until it can account for employees it previously employed but are now unaccounted for, stated Javid Hassan, of the Arab News.

Syed Zia-ur-Rahman, editor and CEO of yahind.com, an Indian Internet portal, reportedly said his site has seen a significant increase in visitors since the addition of a jobs section. He attributes the increase to "the fact that Indians who lost their jobs because of Saudization have been logging on to our website in search of jobs."

In contrast, Philippine Ambassador Bahnarim Guinomla, reportedly said he saw no change in the workforce situation from the Philippines. The Kingdom has an estimated 700,000 Filipinos residing in it, and around 100,000 more enter the Saudi labor market each year, most of which are skilled people working largely in health care, banking and private businesses.

Guinomla has reportedly noticed a trend in Filipino nurses working in the Kingdom. “Those who have working experience in this country are being targeted by hospitals in the US, Canada and Ireland," he said. "As they leave for those destinations in the West, those vacancies are again filled up by new arrivals from the Philippines. So it’s kind of a relay situation.”

"The south Indian state of Kerala has been the hardest hit of all, since an estimated 40 percent of the 1.5 million non-resident Indians in the Kingdom are from that state," reported Hassan. "According to a source from the Indian Embassy, the Labor Ministry’s move to reduce manpower import by 100,000 annually could affect one million Indian expatriates directly or indirectly."

Ali Akbar, charge d’affaires at the Bangladesh Embassy, reportedly said he thought Saudization would have a definite impact on the areas targeted by the ministry, but that most positions held by Bangladeshis are the jobs that most people do not want.

However, he said that the Ministry of Health is working to recruit doctors, pathologists and technicians in Bangladesh.

Abdul Majeed, manager of a recruitment agency from Bangladesh, reportedly said the situation was negatively affecting manpower agencies. “The ministry is either canceling visas or drastically reducing the number of visas," he explained. "This has affected our business leading either to the retrenchment of employees or closure of business. We are in a bad shape.”

Some Saudi businessmen are also worried that Saudization is moving to quickly. Some business leaders at a meeting held recently at the Council of Saudi Chambers of Commerce and Industry said a shortage of skilled and qualified Saudis is a problem that is forcing some Saudi businesses to relocate to neighboring states and export their wares into the Kingdom.