NEW tax..new life..

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The new charges by the Ministry of Labor seems like a huge issue. It has caused a bigger crises then unemployment did to be honest. Hehe…..
One CEO of a very big company told me the other day that it will cost them SAR 10 million per year to maintain their 7000 plus labor force now. He was clearly very upset!

It is ok to have such rules..if you have the local labor force available to fill the gap..but, there is no such thing as Saudi labor force. Saudis do not make tea..clean toilets..work as construction workers..maids and plumbers. Do they?

Not a single of those 7000 jobs in that company can be taken by a Saudi considering minimum wage and various other costs. What do you do?

Having said all that, I say I like the rule. Why?

Sponsorship has given some establishments the privilege of actually selling visas..bringing people here and charging them an amount each month so that they can live here. What does that do? It adds to the growing population of expatriates here and that reduces the chances of locals being challenged to work and learn to work. And, this is what has been happening for years now..bringing us to this point.. where many hundreds of thousands of locals have no jobs..

This move ..as ruthless and brutal as it may seem..will eventually get Saudi Arabia to grow out of the sponsorship system and develop better ways of accommodating expatriates and developing locals. This will have a direct affect on local mind sets..believe it or not.
Abnormal systems have crossed limits as it is…and everyone is affected. Companies that have abused foreign labor have to pay a price.
Expatriates that have abused Saudi Arabia have to pay a price..and greedy Sponsors have to pay a price.. That is what this new rule and charge has done.

Me? I don’t mind paying 5000 a year if I am left alone to do my business..come and go as I please.. I really will be too happy and happily create jobs for locals. Most foreign businessmen will agree. We will even provide training for locals.
Just my views..but..

See what happens when everyone is unfair? And..this is just the beginning…

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3 thoughts on “NEW tax..new life..

  1. I have always agreed with your views. But as I
    have always maintained your views are far far ahead of time. Such ideas are not even conceived. You talk of space age let’s invent the wheel first.

  2. Huh. 5000 in tax? A pittance compared to what I pay. Course I have free health care, employment insurance, welfare if I should need it, excellent schools, roads, public transit.. But maybe your oil money pays for all this anyway. Aren’t you all rich in Saudi?

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