Unable to hire Saudis, their firms fell into Red ZoneJEDDAH – A total of 1,049 small-scale businesses run by Saudi women have been deregistered because the owners want to benefit from the government's Hafiz Unemployment Aid Program, reported Al-Madina Arabic daily on Monday. The Hafiz program, announced early last year, provides unemployed Saudi beneficiaries payment of SR2,000 a month for one year. According to the law, Saudis running small businesses do not qualify for the unemployment aid. It now appears that many of the businesses that have been deregistered were not making any money. Mustapha Sabri, advisor to the chairman of Jeddah Chamber of Commerce and Industry (JCCI), said that one of the main reasons for businesswomen pulling out of the market is that they cannot afford the high salaries of Saudi employees. This has resulted in their businesses falling into the Red Zone of the Nitaqat Program, government's Saudization plan. With the businesses unable to meet the quotas, the women owners then decided to stop trading and seek government aid. He said 80 percent of Hafiz recipients are women. Sabri said the cancellation of this number of businesses will not have a negative impact on the national economy. “The strongest survive in the market. It is better for them to withdraw from the market and get Hafiz unemployment aid until they find permanent jobs. This is a hundred times better than getting involved in a [risky] business adventure.”
