Saudis Look to Auto Sector for Citizen Employment, as Grace Period for Foreign Workers Set to End

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Foreign workers held 86.6% of private-sector jobs in Saudi Arabia in 2012, but Saudi citizens dominated top-ranking managerial and clerical posts with 85.7%.

Saudi Arabia's Ministry of Labor reported that the country's engineering sector had 3 million foreign workers, the highest number of jobs occupied by foreign workers in any sector in Saudi Arabia's labor market. Only 149,000 Saudis work in the engineering sector.

Large profits from the auto-service sector have made it a safe haven for irregular foreign workers, who run and operate 80% of the sector, according to the Council of Saudi Chambers. However, the auto-service sector is due for a shake up; a grace period for the legalization of foreign workers ends on November 4, after which Saudis will move in and reap substantial financial benefits.

Investment in the auto-service sector is estimated at more than $2.6 billion, and the number of cars that need to be serviced is growing at a rapid rate.

The science, technology and the humanities fields employ 462,000 foreign workers, compared with more than 100,000 Saudis. The service sector employs more than 2 million foreigners and only 265,000 Saudis.

Saudis hold 106,000 positions in the sales force and 23,000 positions in the chemical and food industries, while foreign workers hold 160,000 and 232,000 positions, respectively.

The agricultural, animal breeding and hunting sector holds the lowest percentage of Saudi workers, with only 3,046 Saudis (0.42%) and 730,000 foreign workers.

For related information, see August 15, 2013, article - Saudi Arabia Earned $645,000 a Minute, $38.7 Million an Hour for Record Crude Export Earnings in 2012.

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