Saudi Gazette JEDDAH — The Kingdom's retail sector currently has one of the highest Saudization rates, industry leaders and mall CEOs said at the first annual RECon forum here that ended on Monday. Nonetheless, malls continue to be pressed by the government to achieve 100% nationalization by the end of 2018, according to a recent announcement by the labor ministry. This aims to create 35,000 job opportunities for Saudis. "The Saudization process in malls has started five or six years ago already," CEO of Red Sea Mall Mohammed Alawi told Saudi Gazette. "Malls have the highest Saudization rates." Red Sea Mall has a Saudization rate of 60%, where 700 employees are women. Asked how malls will implement this goal in the coming period, Alawi said: "There needs to be part-time jobs for students so they can work." "Secondly, when it comes to education there's a lack in academic curricula and studies on the retail industry. They need to invest in those programs and develop training for Saudis." The forum was held for the first time in Saudi Arabia and organized by the Jeddah Chamber of Commerce and Industry under the theme of the Future of Retail Sector under Vision 2030. 300,000 out of 1.5 million employees in the retail sector are Saudi, the Vision 2030 states. Retail industry leaders and experts from various parts of the Kingdom and the GCC sought to establish a network as well as discuss challenges and opportunities and propose recommendations to the government authorities. The reversal of salary cuts will bring shopping activity back to normal, added Alawi who announced the opening of the mall's new food and beverage expansion this week, the largest in Jeddah yet. Jeddah serves as a significant tourist destination where large shopping centers receive up to 17 million visitors per year. 40% of tourists spend their time shopping. Of the total SR200 billion investments in the retail sector, over SR41 billion are from foreign investments. The general manager of the National Tourism Authority of the Makkah region, Mohammed Alamri, said the government is working on getting more visas to boost tourism where retail is an important component. "We ask the government to accelerate the tourist visa as quickly as possible," Alawi added. CEO of the Middle East Council for Shopping Centers, David Macadam, described the retail sector in Saudi Arabia "in the growth phase" with many opportunities. Tourism is a great source of revenue for retail, he said, adding that the tourism authority and other government bodies are trying to increase the ease of access of the country and bring in foreign tourists. Asked about the economic recession's impact on retail, he said "businesses have peaks and valleys in terms of performance. It's important to have a long-term view. The best retailers will start to focus more on managing their expenses." Voted as the best working environment for Saudis, Al Nahdi Medical Company has employed 1,300 Saudis up to date. "It was the first community pharmacy to recruit Saudi pharmacists," the company's CEO Yasser Joharji told Saudi Gazette. "The challenge, like any other, is training and investing in developing them." Asked about employing women, he said women are hired at a management level but there are "plans to deploy Saudi female pharmacists."
