Several retail shops reportedly close ahead of Saudization

Several Saudi retail stores have started to shut down their businesses ahead of the Saudization decision planned to come into effect on Sept. 11, indicating a heavy reliance on expatriates working in the sector, Okaz newspaper reported.

The Kingdom’s Ministry of Labor and Social Development earlier notified retailers in four sectors, namely automotive, apparel, home appliances and furniture, to start applying a 70 percent Saudization rate effective a week from today.

Stores in Riyadh, Dammam and Madinah have already started to nationalize their workforce, as the ministry steps up Saudization enforcement and conducts inspections to ensure compliance, the newspaper reported.

The nationalization decision will benefit both the Saudi citizens and the economy, as the Kingdom’s retail market is valued at around SAR 375 billion, said economist Abdulaziz Sharofna.

“I expect the retail sector to create up to a million jobs,” he added.

The Saudization plan is in-line with the initiatives under Vision 2030 to incentivize small and medium enterprises that are led, run and operated by nationals, he added.