Many car rental companies have closed business ahead of the March 18 Saudization deadline. Apparently, not all offices have complied with the decision of the Ministry of Labor and Social Development while some closed their doors for fear of the hefty fines on businesses that do not abide by Saudization rule.
What Investors Think
Abdulrahman Al-Ghamdi, an investor in rent-a-car sector, says the sector cannot pay high salaries to Saudis because business owners have to pay back the instalments of the vehicles they bought and have to pay operational expenses including car service, gasoline, oil change, daily washing, the annual rent of office and other expenses. His business does not generate the same lucrative profits it used to, besides it involves several risks as some vehicles might get damaged or destroyed in road accidents.
Fahd Al-Jabri, another investor in the sector, believes that the Saudization decision is a step in the right direction. “It will benefit many Saudis and create job opportunities for them at the monthly salary ranging between SR4,500-SR5,500.” Benefits also include one day and a half off weekly and a one-month annual vacation.
Ahmed Al-Harbi, an investor, also believes that many Saudis will reap the benefit of the decision once it is enforced. He believes that the Saudization of jobs in the sector will boost investors’ confidence in Saudi youth’s capabilities. The salary can reach SR3,700 for high school graduates and SR5,000 for college graduates.
Women to work in car rental companies
Saudi women to work in the car hiring sector provided that the work environment is ready to receive women with the implementation of all the conditions needed for working women, according to Spokesman of the Ministry of Labor and Social Development Khaled Abal-Khail.
Source: Saudi Gazette