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Taxing times for beauty business
Published in The Saudi Gazette on 29 - 11 - 2012


Saudi Gazette report
RIYADH — A Ministry of Labor decision to impose a SR200 fine for every expatriate not covered by Saudization quotas has angered owners of beauty parlors and dressmakers, Al-Riyadh newspaper reported.
They have to recruit expat workers since Saudi women are reluctant to work in these professions, the owners say.
A dressmaking shop owner said she started her small business eight years ago and began employing Saudi women.
However, she believed the Ministry of Labor's decisions have left traders struggling.
Many businesses have decided to shut down and move to neighboring countries, she added.
Another trader in the sector said that she started her business four years ago and intended to employ Saudi women.
However, she added, they take their work lightly and refuse to do certain chores, forcing her to recruit from abroad.
Another businesswoman said she started her business 10 years ago.
The business floundered as her Saudi workers stopped showing up to work for no reason. She notified the authorities but no action was taken. These workers are now working for themselves, she said.
A dressmaking shop owner said Riyadh alone has 25,000 such shops.
Since every shop employs at least three expatriate workers, due to the Labor Ministry's decision there is now a demand for at least 75,000 Saudi women in the city.
The head of the Bridal Dressing Society in Makkah Nadiah Ayash said there is a scarcity of Saudi women who are willing to work in this profession.
In addition, these women apply to the Hafiz unemployment assistance program, claim SR2,000 a month and stay at home, she added.
She said this has added to the problem.
She said she supported the employment of Saudi women who are born in the Kingdom and are permanent residents.
They are more capable of working in these professions and do not transfer money abroad, she said.
This will also reduce the demand for recruitment visas, she added.
Regrettably, she said, there are no institutions that offer dressmaking and beauty courses.
She stressed the necessity that Saudi women abide by their contracts and maintain a commitment to work ethics.
Small businesses should be exempted from the additional fees imposed by the Ministry of Labor, she added, until alternatives are available.
Traders are questioning the ministry's effectiveness in cracking down on businesses that sell their visas on the black market.
In addition, they questioned its effectiveness in enforcing the law for workers who flee their sponsors.


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