False Saudization rates boost unemployment and negatively influence Saudi citizens, warned economists in Saudi Arabia.
Dr. Abdul Hamid Al-Omari, a member of the Saudi Economic Association, criticized decisions of the ministry of labor, which he claimed were difficult to understand and didn’t address the market’s situation.
“The ministry’s programs are ineffective in employing citizens, and its decisions have led some to fake Saudization,” he explained, warning of severe repercussions. “We will move from a case of mere economic distortions to a crisis that cannot be solved in traditional ways,” he told Arab News, charging that these problems could threaten the Saudi economy over the next two years.
Al-Omari pointed out that the high salaries of the fake Saudization rates amounted to billions of Saudi riyals, which cause inflation: “The companies don’t lose anything but consumers will suffer from the rising cost of living.”
Al-Omari called upon the Shoura Council to recommend that the custodian of the two holy mosques King Salman suspend the ministry programs, open an investigation into the errors and address the problems from their core.
Others claim financial situations will be threatened by employing unqualified Saudis. The Saudi youth are not qualified for the jobs and employing Saudis can have financial and organizational downsides in comparison to employing non-Saudis, economist Dr. Mohammed bin Dulaim Al-Qahtani said.
He said that there’s a gap between the aims of the labor ministry which is to employ more Saudis and reduce unemployment rates and the companies’ goals which are mostly limited to financial profits.
Al-Qahtani said the fake Saudization kills creativity among job seekers pointing out that the market needs 25 percent of its manpower as youth but they are not working. He also said that the companies waste SR585 million ($156m) on monthly salaries without any productive returns.
