The decision of the Ministry of Human Resources and Social Development in Saudi Arabia to bring another 30 professions, including those of accountants, teachers, doctors and engineers, within the ambit of the Saudisation programme (nationalisation of jobs) in 2022 has emerged as a direct threat to Indian expatriates in the Gulf country.
Thousands of Non-Resident Indians, especially from Kerala, are likely to lose their jobs with the second phase of the Nitaqat drive, the Saudi government’s national employment scheme, in grocery stores, supermarkets and restaurants, which came into effect from Monday.
Now, the posts of general supervisor, cash counter supervisor, customer service executive and accountant will be fully reserved for local Saudi population. Moreover, 50% of the posts of branch manager, assistant manager and department manager will be filled through Saudisation. The latest move applies to catering establishments and supermarkets having a built-up area of 300 sq. m and 500 sq. m respectively.
“The move will help large grocery shops and supermarkets to employ more Saudis, which in turn will reflect positively on nationalisation efforts. But Indians who are employed in this sector will lose their jobs,” said, Mohammed Hussain, an Indian business owner in Saudi Arabia.
Abdu Jaleel, another investor, said the new rules were brought in to eliminate the cover-up in business establishments. “Most of the small groceries employ Indian expats. Besides, the administration can keep a tab on transfers of huge foreign funds,” he said.
Saudisation is a setback for Indian expats who for decades have dominated the labour market. Over 25 lakh Indians reside in Saudi Arabia, according to the Ministry of External Affairs. But thousands of Nitaqat-hit expatriates have been returning home since 2011.
Previously, sectors such as transportation, construction, manufacturing, car rental outlets, and showrooms of textiles, mobiles, carpets, furniture and household goods came under the Saudisation category. Now, the focus is on tourism, hospitality, housing and real estate segments.
Nitaqat obliges that companies with more than nine employed staff members hire a certain percentage of Saudi nationals. A coloured status is assigned to each company based on type, size and percentage of Saudi employees.
The twin shock of the COVID-19 pandemic and lower oil prices had resulted in unprecedented job loss for expatriates. “Saudisation forced me to return to Kerala after the government refused to renew residence permit for categories in the nationalistaion programme,” said Anil Gopinath, a Gulf-returnee.
As part of the Saudi Vision 2030 reform programme, private companies and businesses have to employ Saudi Arabia nationals by replacing foreign workers. Incidentally, unemployment in Saudi Arabia had crossed 15% in 2020.
However, the rigorous Saudisation programme led to the creation of four lakh jobs in 2021. The Saudi government aims to raise the rate of its nationals in economic participation by 60% in 2030.
