Saudi inspectors find 180 violations of new labour rules, 251 car showrooms closed

New rules requiring vehicle showroom staff to be 70 per cent Saudi came into effect last month

Saudi inspectors found nearly 180 violations during a recent campaign designed to ensure car showrooms are complying with new Saudisation rules, Saudi Press Agency (SPA) reported.

Under the regulation, which came into effect last month, automobile and motorbike showrooms and shops selling items including ready-made clothing for men and children, home and office furniture, household goods and utensils must ensure 70 per cent of their sales staff are Saudi.

Outlets selling electrical appliances and electronics, watches and optical instruments will be subject to the staff limit from November 9 and those selling medical appliances and equipment, building and construction materials, vehicle spare parts, carpets and confectionary from January 7.

Local media reported up to 1.22 million expat jobs could be affected by the restrictions.

Read: Saudi retail, wholesale restrictions could impact 1.22 million foreign-held jobs

A total of 2,702 joint field inspections of outlets selling automobiles and resulted in the discovery of 179 violations, SPA said on Tuesday.

This included 97 specifically related to Saudisation levels and 82 others.

A further 377 warnings were issued to establishments and 251 were found to be closed.

A total of 2,307 were found in compliance of the new rules.