95% of Saudi mobile shops comply with Saudisation drive

An estimated 95 per cent of mobile shops in Saudi Arabia are now abiding by new regulation requiring the entire workforce to be Saudi, according to reports.

In March, notices were sent to mobile shops requiring half of positions to be filled by Saudi nationals by Ramadan and 100 per cent by September 2.

Read: Saudi mobile industry required to employ 100% Saudis in six months

Arab News cited labour ministry undersecretary for inspections and development of work environments as saying 2,633 mobile establishments had been inspected in the kingdom of which 2,413 were found to be in compliance with new Saudisation rules.

Inspections are expected to continue in all provinces of the kingdom to ensure compliance.
Recent site visits fond 511 violations, of which 447 were referred to a sanctions committee, a further 83 shops were closed and 64 received notices for being closed during the inspection.

The sudden imposition of strict Saudisation measures in the sector caught many owners by surprise.
Nearly 2,000 shops had closed since the announcement, according to reports in August.

Read: Nearly 2,000 Saudi mobile shops closed

While investors have exited the sector following the changes citing increased staff costs and a lack of workers.

Read: 40% of mobile shops fail to meet Saudisation target, 30% shut down

Following the mobile shop sector, the ministry is expected to focus its efforts on the nationalisation of car sales and rental jobs.

Read: Saudi to nationalise health, automobile sectors