Saudization
Saudization
Date: Wednesday, February 25, 2004 10:35 AM
JOB DESTRUCTION NEWSLETTER
www.ZaZona.com
In the United States, Siemens forces American citizens to train their
foreign replacements and then fires the Americans as soon as the
foreigners are able to handle the work. In Saudi Arabia it's a
different story - Siemens trains Saudi citizens to do the work. The
reason - Saudization!
The Saudization plan was imposed by King Fahd bin Abdul Aziz to wean
Saudi Arabia from dependence on cheap foreign labor. Saudization
requires that many categories of employers must hire at least one Saudi
national within a year. Fifty percent of their workforce must become
local by the second year, and the proportion must go up to 75 percent
in the third year. In some cases 100 percent Saudization may be
required.
Economist Ihsan Bu Hulaiga understands the problems with cheap foreign
labor so well that he should be invited to the United States to talk to
our clueless Congress and our anti-American economists like Alan
Greenspan!
Bu Hulaiga rubbished what he called the "misconception" that
many Saudis are jobless because they spurn the modest jobs
that foreigners are happy to take, even though some newspapers
have described this as a major impediment to the government's
Saudization drive.
"Saudis want to work just like other people do," but employers
tend to prefer foreigners because they accept lower wages, and
they can not really be blamed so long as their employees enjoy
a legal status, he said.
What needs to be done is to reduce the number of available
non-Saudis, to make expatriates more scarce and expensive in
order to improve the Saudis' chances of getting jobs,
Bu Hulaiga said.
I have included several articles that explain Saudization and how it
affects Siemens and various other businesses in Saudi Arabia. Companies
that have mandated Saudization goals include jobs in retail, medical,
and banking. Observe that not a single one of these articles contains a
threat to use the WTO against Saudi Arabia. That's because Saudis don't
kowtow to globalists.
Perhaps one day we will follow their lead and have a new program to
save our jobs called AMERICANIZATION.
http://www.kingfahdbinabdulaziz.com/main/j600.htm
Saudization
In recent times, the program of Saudization (replacement of foreign
labor by Saudi nationals) has accelerated. To some extent, the surge in
revenues engendered by the oil price increase of 1979-80 tended to
foster false expectations amongst the population. The gradual
realization that the "boom" period could not continue indefinitely
encouraged the Saudi workforce to adopt a more realistic and, in the
longer run, much healthier attitude to the role they can and must play
within the Saudi Arabian economy, both in the public and private
sectors.
This change of attitude would have occurred in due course even if the
oil price had not fallen. By the end of the Third Development Plan
(which ran from 1980 to 1985), most of the Kingdoms infrastructure
was in place. Industrial sectors such as construction were inevitably
facing a very considerable contraction. The rationale behind all the
Kingdoms development plans has been to create a diversified economy,
with thriving agricultural and industrial sectors, manned and managed
by Saudi citizens. It is therefore fair to say that diminished revenues
have simply hastened a process which was an essential element in King
Fahds long-term strategy.
It is also the case that the influx of foreigners, so necessary for the
building of the Kingdoms infrastructure and the development of its
industrial and agricultural base, brought with it some social strains.
The Kingdom of Saudi Arabia is a strictly Muslim country. The millions
of expatriate workers arriving in Saudi Arabia came from many different
countries with diverse cultural backgrounds. The expatriates faced the
problems of adjusting to Saudi society and there were those in the
Kingdom who feared that Saudi society itself could be diluted by the
influence of alien cultures. These fears proved groundless.
http://www.kfshrc.edu.sa/rcs/html/saudization.html
SAUDIZATION
"Saudiization" is the term used to describe the Kingdom's program to
train Saudi citizens in a myriad of professions, including Respiratory
Care, with the goal of eventual self-sufficiency in all aspects of the
modern work place.
Respiratory Care Services supports the goal by offering training
opportunities for Saudi Nationals. Many Saudi Graduate Respiratory
Therapists have passed through our former Internship and Fellowship
programs, gaining professional knowledge and experience in our facility
before going on to earn Bachelor's Degrees in Respiratory Care from
University programs in the United States.
New training programs, to replace those designed for the initial phases
of this profession in the Kingdom and inadequate to the current task,
are currently under development in RCS. With accredited Respiratory
Therapy programs now underway in the Kingdom, we anticipate that
KFSH&RC will once more become a prime training facility for these
students.
As well, the SCDP (Saudi Career Development Program) offers a variety
of programs to Saudi Nationals, including technical training within our
department. We are very pleased with the quality of these programs and
with the individuals who have joined our department as SCDP-sponsored
trainees.
We look forward to these opportunities to participate and contribute to
these programs, and we are proud to be associated with them.
http://www.siemens.com.sa/jc/jcs.html
Saudization
A strong corporate culture attracts the best employees.
Siemens is one of the most attractive employers in Saudi Arabia.
Worldwide, Siemens trains thousands of young people for the careers of
tomorrow. We cooperated with the Juffali Training Center (JTC) to
establish a Siemens training program based on the German apprentice
training. Here promising young Saudis are being trained for the
challenging work environment of future.
The programs involves vocational training, practical exercises and,
most importantly on-the-job training sessions at the factory or site.
Our commitment to Saudization.
A growing number of senior technical, managerial and executive
positions are held by highly qualified Saudis. Long-term assignment to
Germany as well as participation in international management training
programs are major elements of management learning for these senior
employees, who will act as local multipliers of both corporate culture
and skills.
At Siemens, we leverage our global, broad-based range of competencies
to serve our markets from competent local organizations with
exceptionally well-qualified local employees. This is our commitment to
the Kingdom of Saudi Arabia.
Title : 'Saudization' of jewellers seen as precursor to nationalising
retail sector
By :
Date : 21 February 2004 1925 hrs (SST)
URL :
http://www.channelnewsasia.com/stories/afp_world_business/view/72143/1/.
html
RIYADH : The Saudi government began enforcing a decision to bar foreign
workers from gold and jewellery shops in a move a leading economist
said sends "a strong signal" that the retail sector will be "Saudized"
to provide jobs for nationals.
"It is too early to say if the Saudization of the gold sector is
proceeding smoothly but the feedback we are getting from the field so
far is encouraging," the secretary general of the Manpower Council,
Abdulwahed al-Humayyed, told AFP Saturday, hours after the total ban
went into force.
Indians and Yemenis top the list of expatriates facing the axe in
jewellery shops across the kingdom.
Since the decision applies only to retail workers, "we're talking of
between 25,000 and 30,000 jobs to be reclaimed by Saudis," rather than
figures of a quarter million or so being bandied about in some
newspapers, economist Ihsan Bu Hulaiga told AFP.
Bu Hulaiga noted that the jewelry sector was already an "almost 100
percent" Saudi affair in the oil-rich Eastern Province, where a
tradition of passing the trade from one generation to the next had been
kept alive.
Humayyed estimated some 20,000 jobs would be up for grabs by Saudis,
depending on how traders adjust to the Saudization process.
Saturday's move is the first in a series providing for the Saudization
of 25 economic activities -- mostly in retail -- over three years, he
said.
Under the plan, employers in each of the designated activities must
hire at least one Saudi national within a year. Fifty percent of their
workforce must become local by the second year, and the proportion must
go up to 75 percent in the third year except in cases where 100 percent
Saudization may be required.
The local press has been trumpeting the plan to "Saudize gold."
Business daily Al-Eqtisadiah reported that "no nationality would be
exempted" and that authorities would send inspection squads to jewerly
shops and fine violators. Foreigners who continue to defy the ban will
eventually be deported.
While expatriates from the subcontinent, particularly Indians, work in
large numbers in the gold and jewelry sector, the newspaper's reference
to no exceptions appeared to be an allusion to Yemenis, the largest
group among Arabs working in jewelry shops.
After a three-year "grace period" for jewellery shopowners, during
which the decision to Saudize jobs was implemented partly at best, the
government was to "send an extremely strong signal that the retail
business is going to be Saudized" by enforcing a total ban on foreign
salesmen and clerks in gold shops, Bu Hulaiga said.
Government policy is moving toward enabling Saudis to "reclaim small
businesses" which they largely controlled until the late 1970s, and it
is precisely small businesses that can "absorb unemployment," he
explained.
Bu Hulaiga rubbished what he called the "misconception" that many
Saudis are jobless because they spurn the modest jobs that foreigners
are happy to take, even though some newspapers have described this as a
major impediment to the government's Saudization drive.
"Saudis want to work just like other people do," but employers tend to
prefer foreigners because they accept lower wages, and they can not
really be blamed so long as their employees enjoy a legal status, he
said.
What needs to be done is to reduce the number of available non-Saudis,
to make expatriates more scarce and expensive in order to improve the
Saudis' chances of getting jobs, Bu Hulaiga said.
Humayyed, commenting on reports that some businessmen fear the
"Saudization of gold" will spawn a black market run by sacked
expatriates, said: "These are merely fears, speculation -- bearing in
mind that no country in the world can fully control the black market,
or what is called an 'underground economy'."
Up to three million foreigners face the axe in the next decade after
the Saudi government decided in February 2003 to limit the number of
foreign workers and their families to less than 20 percent of the Saudi
population by 2013.
The number of foreigners in the kingdom is estimated at between six and
seven million, compared to around 17 million Saudis.
While stressing that easing unemployment was a priority, Bu Hulaiga
said so-called "unofficial estimates" that unemployment now stands at
around 30 percent were not just too high but also incomprehensible.
The official figure of 10 percent "is the most reliable," he said, "but
this is already too much" in a country where expatriates make up about
67 percent of the workforce.
http://www6.arabnews.com/?page=9§ion=0&article=40080&d=25&m=2&y=2004
Wednesday, 25, February, 2004 (05, Muharram, 1425)
King Fahd Medical City: A Saudi Success Story
Nouf Abdullah Al-Rakan, Special to Arab News
RIYADH, 20 February 2004 - King Fahd Medical City (KFMC), the largest
medical complex in the Middle East, is in Riyadh and consists of a main
hospital, maternity hospital, pediatric hospital, rehabilitation center
and primary care clinics. In addition to the hospitals there are a
burns treatment unit, kidney center, intensive care facilities and
spinal cord treatment unit.
Arab News met Dr. Mansour Al-Howasi, deputy minister for executive
affairs in the Ministry of Health and the head of the administrative
council of KFMC.
Question: As we know, government plans aim at Saudization. How do you
plan to Saudize posts in hospitals? What about nursing? Will we see
qualified Saudi nurses?
Answer: If we recruit a non-Saudi, that is a temporary solution until
he or she can be replaced by a Saudi. Its too early to discuss this
issue because we are still in the early stages, having been working for
only several months. We will work to have an all-Saudi staff. We also
have a plan for training Saudis both inside and outside the Kingdom.
Have you sought help, at least in the early stages, from other
countries with experience in building and administering medical cities?
We sought help from no other country. Everything was prepared and
carried out by our colleagues in the Ministry of Health (MOH). It is a
100 percent Saudi success story.
Will KFMC have a body to investigate medical errors?
It already exists. It includes consultants from universities nominated
by the Ministry of Higher Education and consultants nominated by the
Ministry of Health. It is considered a medical court and it
investigates patients rights whether a complaint is filed or not.
We have eight courts and they meet twice a week and make various
decisions but like other courts, the results are not made public. Only
those directly affected know the results. We must differentiate between
medical errors and complications resulting from medical treatment.
SR15 billion is the Ministry of Healths budget for this year. How
much did KFMC get?
KFMCs budget for the coming year is SR300 million for operations
including medical and non-medical maintenance and catering contracts.
Do you think that amount will cover the costs since many hospitals are
replacing old equipment?
We have a plan to replace some equipment within the available budget
and in the future we plan to reach the target for replacing our
equipment.
How long do you think it will take for the medical city to be
completely operational?
That is linked to the budget in the coming years.
As you know most of the MOH patients are simple, often illiterate,
people. How do you plan to get the relevant information to the public?
We are using all possible media channels in order to reach every level
of society.
Medication in all government hospitals is free. Is that true at KFMC?
Will non-Saudis get the same benefits?
It is well known that medication is free of charge in all MOH
hospitals. This also applies to KFMC. There are eligibility rules which
arrange the matter and make everything clear.
http://www.alahli.com/aboutus/saudization.jsp
Saudization Program
Saudization Is over 70% In NCB
The adoption and development of a national workforce, faith in the
vision of the country's youth and the provision of opportunities for
new Saudi graduates - these are some of the practices, which have been
supported by top management in NCB for a long time. The Bank's leaders
see them as part of the Bank's responsibilities toward the country and
a way to substantiate its vision of service to society. By the early
part of 1995 top management had decided that these practices must
become more structured processes, ensuring the best possible
achievements in the attraction, selection, orientation and placement of
new Saudi graduates in the jobs most suitable for their skills and
capabilities. All the resources needed for such a strategic goal had to
be in place.
By the first of September 1995 the necessary preparations had been
completed. The first Saudization group started on Saturday the 16th of
September, launching the process of the Induction Program.
The Mission
Our task as the team charged with the Induction Program Saudization
Project - is to help in the effort to increase the Saudization ratio in
NCB by recruiting talented new Saudi graduates, managing the process
and coordinating the work with all the related parties so that it can
work as efficiently as possible.
Our Goal
At the beginning of the program, top management set a very clear and
high-aiming goal: to raise the Saudization ratio to 75% bank-wide by
the end of 2000. Today, we aspire to an even higher one: by the end of
2004, NCB has to be 85% Saudized in terms of manpower.
Our Target
The Induction Program aims to recruit and orient Saudis who are new
graduates of high school or a university and who hold a diploma,
Bachelor or Master degree in banking, managerial and/or
computer-related majors. In order to cope with globalization, they must
also be bilingual in Arabic and English.
What we have achieved up to now?
During the last five years, the life of the Induction Program, it has
contributed to raising the Saudization ratio from 50% to 73.4% today.
That was through:
Orienting and placing about 750 Saudi graduates.
Getting strong support from top management.
Financial support: a budget of more than SR 60 million during the
program's life.
http://sify.com/news/fullstory.php?id=13397687
Indians lose jobs in Saudi gold shops
Saturday, 21 February , 2004, 15:02
Riyadh: The Saudi government began enforcing Saturday a decision to bar
foreign workers from gold and jewellery shops in a move a leading
economist said sends "a strong signal" that the retail sector will be
"Saudized" to provide jobs for nationals.
Indians and Yemenis top the list of expatriates facing the axe in
jewellery shops across the kingdom, but Ihsan Bu Hulaiga said press
estimates of jobs that will consequently be open to Saudis were grossly
exaggerated.
Discuss: Indians can no longer depend on Gulg jobs
Since the decision applies only to retail workers, "we're talking of
between 25,000 and 30,000 jobs to be reclaimed by Saudis," rather than
figures of a quarter million or so being bandied about in some
newspapers, he said.
Bu Hulaiga noted that the jewellery sector was already an "almost 100
percent" Saudi affair in the oil-rich Eastern Province, where many
residents had kept up a tradition of passing the trade from one
generation to the next. The local press has been trumpeting the plan to
enforce the three-year-old decision.
Business daily Al-Eqtisadiah reported that "no nationality would be
exempted" and that authorities would send inspection squads to
jewellery shops and eventually fine violators and even deport
foreigners defying the ban.
While expatriates from the subcontinent, particularly Indians, work in
large numbers in the gold and jewellery sector, the newspaper's
reference to no exceptions appeared to be an allusion to Yemenis, the
largest group among Arabs working in jewellery shops.
Some reports have suggested that Yemeni President Ali Abdullah Saleh
urged Saudi officials to exempt Yemenis from the decision when he
visited Riyadh earlier this week for talks otherwise dominated by
border security.
After a three-year "grace period" for jewellery shopowners, during
which the decision to Saudize jobs was implemented partially at best,
the government was to "send an extremely strong signal that the retail
business is going to be Saudized" by enforcing a total ban on foreign
salesmen and clerks in gold shops, Bu Hulaiga said.
Government policy is moving toward enabling Saudis to "reclaim small
businesses" which they largely controlled until the late 1970s, and it
is precisely small businesses that can "absorb unemployment," he
explained.
Bu Hulaiga rubbished what he called the "misconception" that many
Saudis are jobless because they spurn the modest jobs that foreigners
are happy to take, even though some local newspapers have described
this as a major impediment to the government's "Saudization" drive.
"Saudis want to work just like other people do," but employers tend to
prefer foreigners because they accept lower wages, and they cannot
really be blamed so long as their employees enjoy a legal status, he
said.
What needs to be done is to reduce the number of available non-Saudis,
to make expatriates more scarce and expensive in order to improve the
Saudis' chances of getting jobs, Bu Hulaiga said.
This is no more than what countries across the world are doing to
protect their labor markets, he argued. Up to three million foreigners
face the axe in the next decade after the Saudi government decided in
February 2003 to limit the number of foreign workers and their families
to less than 20 percent of the Saudi population by 2013.
The number of foreigners in the kingdom is estimated at between six and
seven million, compared to around 17 million Saudis. While stressing
that easing unemployment in the kingdom was a priority, Bu Hulaiga said
so-called "unofficial estimates" that unemployment now stands at around
30 percent were not just too high but also incomprehensible.
The official figure of 10 percent "is the most reliable," he said, "but
this is already too much" in a country where expatriates make up about
67 percent of the workforce.
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