Saudi is requiring employers to rely on local talent, and it’s proving to be a curveball for many businesses
Recently enacted regulations requiring Saudi employers to rely on local talent rather than foreign labor is proving to be a curveball for many businesses, despite being intended to create more job openings for the locals, according to NPR. The regulations apply to several industries, including telecom and electronics retailers, which traditionally relied on South Asian workers to provide skilled and often cheaper labor. Many employers in these sectors now say that retaining Saudi workers isn’t panning out, mostly because of the culture that makes natives of the kingdom see these jobs as lowly and would rather work behind a desk in a government office. Some businesses continue to hire foreign workers, but are forced to pay the government a USD 80-107 fee for each worker, while other small and medium businesses have gone belly-up as a result of the regulations.