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The Ministry of Labour and Social Development has announced by a resolution that it will be implementing so-called “Saudization” measures in relation to retail outlets that operate in 12 sectors. The resolution essentially requires that, at a minimum, 70 percent of the employees who perform certain retail roles in these sectors be Saudi nationals.
The restrictions will be implemented in phases between September 2018 and January 2019.
The retail sectors that will be affected are as follows:
- automobile and mobile shops (September 11, 2018)
- shops selling home furniture and ready-made office material (September 11, 2018)
- sale outlets of ready-made garments (September 11, 2018)
- children’s clothes and men’s accessories (September 11, 2018)
- watch shops (November 9, 2018)
- optical stores (November 9, 2018)
- electrical and electronics shops (November 9, 2018)
- medical equipment stores (January 7, 2019)
- outlets selling spare car parts (January 7, 2019)
- building material shops (January 7, 2019)
- outlets selling all types of carpets (January 7, 2019)
- shops selling household utensils and pastry shops (January 7, 2019).
To comply with these changes, employers operating in these sectors should check the detail of the laws to establish which job roles must be undertaken by Saudi nationals.
Comment
The Saudization changes are a reflection of the prioritization of the engagement of Saudi nationals in the private sector. We expect further measures to be implemented in the coming years.
Written by Zahir Qayum of Al Tamimi & Co. and Roger James of Ogletree Deakins