Nearly 2,000 Saudi mobile shops closed

New Saudisation targets continue to impact the sector



Nearly 2,000 mobile shops have been closed in Saudi Arabia following the implementation of new Saudisation rules requiring 50 per cent of employees to be Saudi.

Arab News reports that 1,950 shops have shut down, of which 582 of are in the Makkah region.

Notices have been served to a further 923 shops for not meeting the early June Saudisation deadline.

A second phase will see mobile shops required to employ 100 per cent Saudis by early next month.

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

So far, 3,458 violations of the rules have been detected and 2,535 have been referred to a sanctioning panel, according to the publication.

Up to 22,413 shops have complied with the new rules so far following 25,965 inspections.

Ministry undersecretary of inspections and improvement of the work environment Fahad Al-Awaidi was quoted as saying the new rules had provided jobs for Saudis and the inspections would continue.

However, many 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