RIYADH — Expatriate control over the Saudi retail market is the main reason behind the International Monetary Fund (IMF) warning that Saudi Arabia may not be able to create enough jobs to stave off rising unemployment levels, economic experts claimed. The Kingdom has long admitted that unemployment is a strategic challenge, but the presence of 9 million expatriates in the retail and construction sectors is limiting Saudi employment options. Talking to Al-Riyadh daily, experts stressed the importance of Saudization in the private sector. They pointed out that many fields are saturated with hundreds of thousands of foreigners. These include vegetable markets, gold markets, used furniture, real estate agencies, Haj and Umrah, catering and general services. Waleed Al-Subaei, an economic analyst, said the IMF's warning must spawn a comprehensive national strategy aimed at lowering Saudi unemployment levels and creating sustainable jobs for citizens. Al-Subaei said foreign recruitment must be slashed in order to control the number of foreign workers in the Kingdom. Al-Subaei claimed tasattur, a type of cover-up businesses illegally controlled by expatriates in exchange for a monthly fee paid to the registered Saudi owner, is widespread in the retail market and has seen foreign transactions skyrocket. He warned that the Saudi Arabian economy is losing SR120 billion annually due to transactions made by foreign employees. Economic analyst Nayif Al-Eid stated that foreign control over the local retail market is the main reason behind the IMF's warning. He pointed out that national unemployment levels sits at 12 percent. Thirty percent of young Saudi men and 35 percent of the total female population are unemployed. Al-Eid called for doubling the number of Saudi employees in the manufacturing sector and barring foreigners from managerial duties. Al-Eid pointed to estimates that show that illegal foreigner workers in the retail market are depriving nationals of around 1 million job opportunities.
