Expats set to lose jobs in departmental stores in another wave of Saudisation

The number of Indians travelling to Saudi Arabia for work has declined in the last few years. While 3,29,882 Indians are said to have travelled to the kingdom in 2014, the number dropped to 3,06,642 in 2015. The figure went even lower in 2016 at 1,65,356. Things are not very rosy for expats living there either as they will now have to pay a "dependent fee" for each family member on a yearly basis.

While this was already a concern, the fresh blow comes in the form of a decision by Saudi Arabia's Ministry of Labour and Social Development that says jobs at confectionery shops and departmental stores must be restricted to citizens of the kingdom, reported Khaleej Times, citing Arabic daily Al Madina.

Not just that, the Shoura Council has reportedly also asked the ministry to shut down smaller groceries and other supply stores and issue licenses to larger stores which can employ locals, thus increasing employment.

Once it comes into effect, the new rule will create about 20,000 jobs for the citizens of Saudi Arabia.

The ministry has also said that mobile vans serving and transporting food and drinks must also only employ Saudis, which in turn will create about 6,000 jobs. An additional 5,000 jobs for locals are likely to be created in car rental offices.

Meanwhile, this is not the first time that the Saudi government has devised ways to create more jobs for the locals. Often called "Saudisation," it has urged companies to hire more locals as opposed to getting people from other countries for work.

"This is to encourage the private sector to employ a greater number of Saudi nationals as well as to reducing reliance on expatriate workers. Further, against the backdrop of declining oil prices, the Saudi government has introduced a number of new taxes/VAT so as to augment the sources of government revenue," the Times of India quoted the foreign ministry as saying.

Not just supply stores, Saudisation is also said to have taken over various sectors such as telecom and healthcare. This might create jobs for Saudis but comes as a shocker for lakhs of Indians working in the kingdom in an array of sectors as they will lose their jobs to locals and will be forced to return to India.

Even in 2013, hundreds of Indians had returned to the country after the introduction of the Nitaqat law. Unemployment woes had brought about a wave of anxiety among expats living in the kingdom and they chose to return to India before they were deported.

"I was unable to implement the Nitaqat law as I could not afford to hire Saudi workers," an expat who returned to India told the Diplomat at the time.