Gabbi Gruver - Saudi Arabia is pushing out foreigners to create jobs for locals

Saudi Arabia is pushing out foreigners to create jobs for locals

Saudi Arabia is going through “labor pains” as they attempt “saudisation” efforts put in place by Crown Prince Muhammad bin Salman. But Saudis are not always up for the jobs that foreigners were doing as well as they expect to be paid significantly more. Such efforts are an attempt to replace foreign workers with Saudis in the workforce. Prince Muhammad has barred foreigners from 12 sectors of the economy, which will reduce the kingdom’s dependence on 8 million unskilled foreigners. Ultimately, he is hoping that this will reduce Saudi Arabia’s jobless rate from 13% to 10% by 2022. Getting more young people, half of who are unemployed, is key for Prince Muhammad. Because the Prince has taken on the kingdom’s clerics and alienated other princes by consolidating his power, the Prince relies on popular support and hopes that by bringing more jobs to the people, he will maintain his support by the people. However, much of the country relies on cheap labor and because they now have to employ much more expensive employees, one third of firms may close. Saudisation may be a painful necessity to help narrow the pay gap between the bloated public sector controlled by Saudis, and the private sector controlled by foreigners.

https://www.economist.com/news/middle-east-and-africa/21741195-new-saudi-hires-are-not-always-up-job-saudi-arabia-pushing-out

Gabbi Gruver