30 April 2017

By Fatima Muhammad

JEDDAH — Owners of car rental offices have called on the Ministry of Labor and Social Development to give them sufficient time to prepare for implementing the decision to Saudize the sector.

The ministry on Thursday announced that all jobs in car rental companies would be restricted to Saudi nationals. It however did not specify a deadline for implementing the decision.

“The move is part of the ministry’s efforts to replace expatriates with Saudis in lucrative jobs as well as to put an end to cover-up businesses and other negative phenomena,” the ministry said in a statement carried by the Saudi Press Agency.

The ministry urged all stakeholders in the private sector to submit their suggestions with regard to restricting jobs in car rental outlets to Saudis. The ministry posted its recommendations on its community participation portal, “Together We Improve”, which can be accessed at http://qarar.ma3an.gov.sa/a/ideas/recent/campaigns/19905.

The move follows signing of a memorandum of understanding between the ministry and the Public Transport Authority last Monday to Saudize jobs in car rental offices and app-based ride-hailing services.

The deal is expected to create some 200,000 part-time and full-time jobs for Saudis in the public transport sector over the next three years.

Mohammad Al-Sudais, general manager of Sudais Cars, said investors would need at least one year to rework the modalities, including working hours, vacations and salary structure, ahead of implementing the Saudization decision.

He demanded the collaboration of the government in implementing the decision by paying part of the salaries for Saudi employees for the first three years.

He also called on the ministry to make Saudi employees liable to pay compensation to the employers if they quit jobs without any justification or a valid reason.

Al-Sudais also emphasized to need to set up institutes to train Saudis seeking jobs in the sector.

Hani Al-Saleh, chief executive of the global car leasing firm Avis in Saudi Arabia, agreed with Al-Sudais. He asked the ministry to give time to car rental companies to fulfill their contract obligations to expatriate employees and restructure their offices to absorb Saudi nationals. “Getting a grace period to prepare the necessary groundwork is essential for the successful nationalization of the sector,” Al-Saleh said.

© The Saudi Gazette 2017