The Ministry of Labor and Social Development’s decision to Saudize the telecom industry has led to an 83 percent decline in the rents of some mobile shops — from SR3,000 to SR500 per month.
This is mainly due to the withdrawal of a number of Saudi investors from the telecom sector to avoid implementation of the Saudization plan.
Also, the number of closed shops has increased in some cell phone complexes. Only 25 percent of phone shops are still operating in these markets.
Some expatriate workers in the telecommunications sector said that the approaching deadline of Saudization has contributed to the drop in rents.
Meanwhile, Khaled Abalkhail, spokesman for the ministry, said: “The Saudization decision for the telecom sector was taken by some relevant authorities and ministries, in partnership with young men and women working in this sector.”
These partners are helping the ministries concerned in scientific and development consulting, as they are fully aware of the telecom market’s secrets, in addition to ways violators could circumvent implementation of the resolution.
Abalkhail said all relevant ministries are attentive to ensure commitment to the decision by all mobile shops, explaining that the ministry is fully aware that illegal expats engaged in the sector might rent surrounding places to secretly continue their work, and thus will take all measures to prevent them from doing so.