Renad Ghanem Saudi Gazette JEDDAH —Nitaqat will wipe us out, say owners of small businesses They said their businesses would be wiped out if the ministry was serious in enforcing the decision. Adel Fakeih, Minister of Labor, earlier this month announced the ministry's decision to include very small enterprises whose total number of employees is nine or less within the Nitaqat program. He said each enterprise must employ at least one Saudi on a full-time basis and register the worker in the social insurance program of the General Organization for Social Insurance (GOSI). The decision will come into effect around mid-March. The ministry said it made this decision based on fears that tens of thousands of expatriates will be hired on the black market and asked to work in restaurants, laundry shops and barbershops, limiting job opportunities for Saudis. Salman, a Saudi national who owns a local advertising agency with less than nine employees and did not wish to reveal his last name, said his business would end up in huge loss if he had to hire a Saudi employee on a minimum salary of SR3,000. For him it means he has to let go of two expatriate workers. He added: “All my employees are Asian. They do many jobs at the same time for the salary of one position. “They are happy about it and not complaining. I doubt the Saudi employee will accept working in the same conditions.” Mukhtar Abdul Sattar, owner of a local stationery store in Jeddah, said he would not find a Saudi willing to work in his store. He added: “I still do not know whether the decision will exempt us. “From what I read it is not excusing all establishments with less than nine workers, which means I am also affected. “I have three workers who are Arab expatriates. Their salaries are low. “Paying a monthly salary to a Saudi employee will strain my budget. “In addition, I will have great difficulty trying to find a Saudi to work in this trade.” Raji Adam, Sudanese translator in a local translation office in Jeddah, said it would be extremely difficult to employ Saudis in this profession. “Translation is not a preferred profession among Saudis. The job requires hard work and involves mental strain. It is very stressful and needs a lot of patience,” said Adam. “The Saudi owner of the office is in a dilemma. He doesn't know how will he convince a Saudi to work for him,” said Adam, adding that he was the only full-time employee who runs the office with a network of freelancers. “Hiring a Saudi at a salary of SR3,000 a month will be a huge burden on the office because we are not earning much,” said Adam. In a statement issued Oct. 15, the Ministry of Labor said the Nitaqat program has included all the enterprises in the private sector for the first time. Since its launch, the program had exempted very small enterprises. But in appreciation of young entrepreneurs and owners who devote their time to these enterprises, the decision allows to count the owner or one of the partners as a Saudi employee in the enterprise, provided they have not been counted within the Saudization percentage in another enterprise.
